Business Auto Insurance

Reader’s Question:

My truck which I use for delivery will cost an awful lot to insure, won’t it? Do I really have to get a business auto insurance policy for it?

James

Bakersfield, CA

Thinking of mileage alone, James. You should expect to pay more for your truck. It probably gets used more than any other private vehicle, and that’s one good reason for any insurer to raise your auto insurance premium. The result is that a business auto insurance policy costs more than a basic auto insurance policy for a regular driver even though it includes the same coverage – liability and property damage.

If your business isn’t home-based, and it maintains a company car, I’m afraid you don’t have much of a choice but to get business auto insurance coverage. It’s good value for your money, though. You do run greater risks, and having it properly insured can protect the assets of your business.

You also have to keep in mind what you deliver. Some auto insurance companies refuse to sell auto insurance policies to trucks that ferry flammable items, antiques and other valuable items. They stand to lose more, and the risks for them are much higher. If in fact they do agree to cover your vehicle, expect the monthly truck insurance premium to be higher, as well.

Here’s a tip to help you save money: choose a higher deductible, one that you can afford to shoulder from your own pocket in case of an accident.