Corporate motor insurance differs from the personal motor insurance plans in terms of scope and premium rates. The former was designed to cater for businesses with many cars and drivers.
The policy assumes all the employees will drive the company’s cars, therefore, the liability protection far exceeds the amount in a standard motor vehicle plan.
The number of drivers of the cars is taken into consideration compared to the usual standard policies. Therefore, the amount set for the premiums are very high.
How do you pick the correct policy?
The competitive nature of the insurance industry means that there are many insurance companies offering commercial motor policies. While a good number offer genuine plans, some provide rather fraudulent deals.
So, how does someone determine which is the best policy? The following are factors to consider before you chose a commercial motor insurance plan.
Policy Rates: To get a favorable rate you need to obtain a list of quotes from different motor policy providers and select the appropriate one. Be cautious of insurers offering low rates and investigate their ability to meet claims that arise. Try and negotiate the rates with your potential insurers, they are sometimes flexible and can offer discounts. This is especially handy when you have many cars.
Stability of the Insurance Provider: Have you done research as to how the insurer is performing in the market? Are they profitable or making losses? What is their market share? These are questions that need to be answered before you decide on purchasing the right policy for your business. Imagine if you were to take a policy then the insurance company went bankrupt. That can be very unpleasant.
Customer Service Reputation: Do research on how long the potential insurer takes to process or protest claims. Some companies have a reputation for long and tedious processes when it comes to settling a claim. Since the vehicles are for your business, you need them to be in good condition constantly, and you cannot have any delays from companies affecting your business.
Reward schemes: Some agencies offer corporate motor policies that reward clients less prone to accidents and damages. Companies with good credit ratings are also eligible for these schemes.
The excess charge: Excess is a portion of the loss paid for by the insured. Typically insurers include it in the policy to make car owners more responsible drivers. This way the insurance provider saves money on expenses resulting from a driver’s negligence. Determine how much your company will be paying in the event such a situation arises.
Read the fine print: Before you sign the policy ensure you are comfortable with all the terms. If you come across any clauses you do not understand, ask the insurer for clarifications or seek a second opinion.
Service Extras: Services such as tire repair, towing and roadside help are very attractive but they can increase the value of your policy, and significantly affect your premium rates.
As a business owner, you are entrusting your motor vehicles to drivers who can be careless with your assets. So you need to protect your assets in the event of an incident or accident with a good corporate motor insurance policy.
Before you purchase a corporate motor insurance policy for your business, make sure you take into account the factors above. Depending on your requirements, the scope of coverage in the corporate motor insurance policy can either be narrow or broad.
Remember that the insurance company needs your business and you have the power to negotiate for favorable terms. All the best!