Think Twice About Insuring Your Car For Business

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The question most home-based business owners ask, before they can decide what kind of car insurance to buy for their car, is whether they should buy commercial or personal car insurance coverage.
Although some home based business owners may have enough insurance coverage for their business car under their personal auto insurance policy; that is not always the case with many.
Inadequate insurance cover may not be able to protect your investment.
If you use your business car for driving a few people around, you should be fine with a personal auto insurance policy.
For example, if you are a real estate broker, and the only people you have to drive around in your business car, are a few clients, you will be perfectly all right with just a personal auto insurance policy.
However, if you operate a delivery service, for example, you will definitely need a commercial car insurance policy to make sure that your business assets are covered in the event that the car is involved in some sort of an accident.
What is essential is that you are fully aware of the auto insurance costs you are likely to incur for your home-based business car.
Home-based business owners have to pay special attention to the liability limits of the policy, to be better able to protect both, personal as well as their business assets.
In most cases, your liability limits and your personal and business tax deductibles are considered to be major factors in deciding how much you have to pay for your auto insurance.
If your car insurance limits are very high, and the deductibles are very low, the insurance premium rates on your car insurance will be quite high as well.
In order to determine what rate of car insurance premium to charge you, auto insurance companies usually look at the average number of miles you drive, exactly who drives your vehicle (you or an employee or a professional), the driving record of the person who drives, and your previous claim history.
If you want to minimize your financial risk as a home-based business owner, you should think about heightening your liability limits.
Having higher liability limits helps in the event of an accident, if the injured party should pursue you both as an individual and as a business owner.
However, the cost of a commercial auto insurance policy is likely to be slightly higher.
Two other things to keep in mind when insuring your home based business car are to insure what you haul, and consider a business owner's policy.
If your business involves the moving of equipment to various sites, you may better off with a rider to cover your equipment.

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