Personal or Business Automobile Insurance: Which One to Choose?
Reader’s Question:
I have a small home-based business, which has been doing well for quite some time already. Now I am already thinking of expanding. If everything falls into place, I will have to start thinking about adding more vehicles. But I do not know whether to get business automobile insurance or not. Would it be better if I avail of personal automobile insurance?
Lily
Jackson, MS
Actually, Lily, you’re not the only one getting confused about whether to get personal automobile insurance or business automobile insurance. It is usually the dilemma of most people who businesses based in their own homes. Most of the time, the majority of business owners are protected by having only their personal auto insurance policy, but this is not always the case.
The thing that you have to remember when choosing whether to get personal automobile insurance or business automobile insurance is the nature of your business.
If your business entails you driving around all the time, it would be best if you stick with business automobile insurance.
Let me give you some examples.
If the business that you run is some type of delivery service, it would mean that your vehicle would be out all the time. It would be better in this case for you to avail of business automobile insurance. On the other hand, if you are some kind of broker for real estate (and the likes) who just uses the vehicle to drive around with prospective clients, I think that personal automobile insurance shall suffice.
If you would think about it, the same things affect your premium. It still is a matter of how exposed your vehicles are going to be to accidents. This is what decides how much your premium is going to be. And also, the higher your liability limits and deductibles are, the less you are going to pay for your automobile insurance.