Business Vehicle Insurance
Reader’s Question:
I plan to buy a small pickup truck to help transport the goods from a supply depot to my convenience store. However, I noticed that the insurance premiums that my insurance company is offering are unbelievable! I try to get a straight answer why, but my agent (being the agent that he is) is being tight-lipped about this. I’m this close to getting a lawyer and forcing his lips to open. Now before I do that, just exactly what factors will come in when I want to get business vehicle insurance?
Bob
Warren, OH
When it comes to business vehicle insurance, you definitely have to pay a higher premium than regular cars. However, you have to look carefully at the coverage you’re getting, so getting a lawyer to review the contract with you isn’t such a bad idea after all. In any case, here are some factors that explain why business vehicle insurance costs more than private vehicle insurance:
• Weight
When it comes to transport vehicles, like the pickup truck that you bought to transport goods for your store, the weight of goods being transported increases the risk that the driver will lose control and inflict greater personal and property damage.
• Load
Your business vehicle insurance premium may be higher because not only do you get the regular coverage that other vehicles get, but the load your pickup truck will be carrying may be covered as well. Again, check this thoroughly in the contract and pester your agent about it.
• Use
Business vehicle insurance premiums are generally high because vehicles used for business are used more frequently and undergo heavier wear and tear than regular cars. This makes them more prone to mechanical failure. Thus, the possibility of accidents is higher with business vehicles.