5 Reasons Why You Should Get Business Car Insurance


There are a million things to learn and remember when you are starting a business. Even just attempting to familiarise oneself with the different types of business insurance can be incredibly overwhelming. However, it’s easy to determine if your business needs business car insurance.

Beyond the daily commute, does your company use vehicles in its business operations? These uses might variously include travelling to different work locations, visiting clients, allowing your staff to drive your car or commercial uses like transporting passengers. If your business involves any of these types of activities, you will definitely need to insure the vehicles with business car insurance. Here are five reasons why it is so indispensable.

Peace of mind

Above all, insurance is about putting your mind at ease about the great number of unexpected things that can go wrong, in business and in life. To produce a business car insurance quote, the insurance company takes stock of the importance of the vehicle to your business and the level of risk involved in operating it. It will consider the use of the vehicle and nature of your work, average mileage, the value of any equipment carried and relevant claims history. You can’t predict the unpredictable, but you can set up a safety net to mitigate the damage when vehicular disaster strikes.

Protecting the business

When a vehicle is essential to the running of your business, a car accident or theft can throw a serious spanner in the works. Aside from covering the potentially astronomical costs of a breakdown or accident, company car insurance policies often include roadside assistance and quick access to a replacement rental car, so you can get back on the road and minimise any negative impact on profits. The most comprehensive business vehicle insurance plans include legal cover, providing funds for legal expenses if an accident case ends up going to court.

Protecting employees

Investing in business vehicle insurance for your company cars is not only common sense for the benefit of the business but also for that of your staff. With insurance, employees are not held liable for third-party damages, vehicle recovery and repairs following an accident. With the most comprehensive policies, employees are insured for medical expenses that they may incur in an accident, damage or theft of their personal effects while they are in the car. They also don’t have to worry about the additional costs and stresses of owning their own car like tax and car maintenance. Furthermore, offering a company car can be a fantastic draw for attracting job candidates when you are recruiting new talent.

Protecting customers

Standard business car insurance NZ only insures the drivers and third parties, whereas, for companies that transport passengers as their business, more comprehensive commercial vehicle insurance is required. This protects the business from claims resulting from an accident where a customer or client was in the car, providing compensation for bodily injury and property damage. Commercial car insurance safeguards the interests of all concerned, while also safeguarding your business.

Cost benefits

As well as protecting your company from the financial risk of vehicular problems, company vehicle insurance can save your business money in other ways. If your business owns several vehicles, motor fleet insurance can be a cheaper way to insure all of the company cars. Fleet insurance covers all of the business’s vehicles on a single policy, which can amount to huge savings. However, be sure to shop around and research all of your business insurance quotes thoroughly. The cheapest option may seem tempting, but you could end up paying more in the long run.

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