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Business auto insurance and you - part 2

Man in car (This is a follow up to my last post about business auto insurance.)

Do you think there are any differences in coverage between a business auto policy and your personal auto policy?

Have you ever wondered what other coverage is available on your business auto policy?

Here are some important things you should know about that make a business auto policy different from a personal auto policy:

  • Higher Liability Limits – business owners are able to purchase higher limits of liability to better protect their assets.
  • Rental Reimbursement – this coverage is typically higher than in a personal policy and covers a business owner should they need to rent a vehicle due to a covered loss.
  • Drive Other Car  – this is an endorsement that can extend coverage to executive officers and their spouses while using a non-owned auto for their personal use.
  • Hired and Non-Owned Coverage - this is one that seems to cause the most confusion. It is simply an extension of coverage to a rented or hired vehicle. Make sure that you check the policy language to ensure that Hired Physical damage is also included. Non-owned coverage can provide excess coverage over a borrowed vehicle, or if an employee uses their own personal vehicle, it can provide excess coverage over their policy if you have the proper endorsement – employees as insureds.
  • Towing – higher towing limits are available. It costs more to tow a large truck than it does a small vehicle.

If you are thinking now that you don’t need a business auto policy because you don’t need this type of coverage, think again.

Most personal auto policies will exclude coverage if you are using your vehicle regularly for business use.
Now, keep in mind it does depend on which type of business you are using your vehicle for.

Another issue that is most troubling to business owners is how their vehicles are titled. If the vehicle is titled to the business and you are using it regularly for the business then it should be insured by a business auto policy.

Don’t wait until a loss occurs and find out that you don’t have any coverage because you did not have your vehicle insured under the correct policy. The benefits of proper coverage can far exceed the costs.

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