In the current business climate, company car insurance can be a crucial item on a company’s balance sheet. Business owners are increasingly seeking to ensure their company car investments are well protected when they’re on the move. The cost of car insurance is always a factor but how much is company car insurance?
The cost of company car insurance depends on the level of coverage required. A basic commercial policy will typically provide basic third-party protection and sometimes additional coverages such as personal accident, car accident or legal liability. This type of cover may cost around £150-£300 for the year depending on the type of vehicle and its use. For a slightly higher cost, a comprehensive policy may cover any number of additional scenarios.
The size and type of business will also have an impact on the cost of company car insurance. Businesses that use large fleets of cars will have higher premiums as they are deemed to be a greater risk. The type of driver operating the vehicles is another consideration as the insurance will typically incorporate a risk factor depending on the driver’s experience and other factors such as their age, the type of vehicle they are operating and the length of the drive.
While the cost of car insurance can vary significantly, there are a number of ways to potentially reduce a business’s costs. Increasing the level of security and safety equipment installed in the car can reduce the risk after an accident and thus companies may be able to negotiate better rates depending on the level of protection they have in place. As cars can often be used for business purposes, adopting a no-claims bonus from another policy could also reduce the premium.
Businesses may also be able to benefit from a corporate car insurance policy that covers the entire fleet or fleet of vehicles for a reduced rate. This type of insurance will usually cover all the cars under the same policy and can save on significant costs as the risk is spread across the entire fleet. Other options such as taking out an extended warranty or using an insurance broker to find the best cover for the best price are also available.
Experts suggest that it is important to ensure that the level of insurance coverage is adequate and comprehensive. Careful consideration should be given to the coverage the company car insurance provides while taking into account any potential cost savings. It is also important to ensure that the policy includes adequate liability and property damage protection, as well as protection against any potential losses that may be incurred while driving.
It is also important to ensure that the policy includes a clause that covers any legal fees that may be incurred as a result of any claims made against the company car insurance. This may be especially important if there are multiple drivers in the fleet or if the car is used for business events. Additionally, it is important to review the policy on an ongoing basis to ensure it continues to provide the level of protection required.
Vehicle Requirements and Types of Insurance
When choosing a company car insurance policy, it is important to consider any legal requirements the car must meet. This includes ensuring that all vehicles in the fleet meet legal roadworthiness requirements and that employee drivers have a valid driving license. It is also important to consider any additional coverage items that may be required such as breakdown recovery or windscreen replacement.
There are different types of company car insurance on offer and the policy should be tailored to the company’s specific needs. Public liability insurance may be required if the vehicles are used for customer or client visits, while fleet insurance may be necessary if there are multiple vehicles in the fleet. It is important to research the different types of cover available and compare various policies to ensure that an appropriate level of protection is obtained and that the cost is kept to a minimum.
Minimum Insurance Requirements and How To Reduce Cost
Most businesses in the UK are legally required to maintain a minimum level of company car insurance, regardless of the size of the fleet and the type of car being used. The minimum required level of insurance must be provided in order to protect the businesses’ assets and ensure that the drivers remain safe and in compliance with the law. It is important to review the minimum insurance requirements and ensure that the company is adequately covered.
In addition to the minimum insurance requirements, companies are also able to take advantage of additional measures to reduce the cost of their car insurance. This includes installing safety equipment, such as airbags, seat belts and anti-theft devices, as well as safe driving policies that help reduce the risk of accidents. Companies may also consider increasing the amount of excess they are willing to pay on any claims, which can reduce the cost of their premiums.
Comparison Shopping for Company Car Insurance
When looking for car insurance for a business, comparison shopping is often the best way to get a good deal. Comparing different insurance providers and their policies can help companies determine which policy offers the most protection at the lowest cost. Companies should compare the various features offered by policies and make sure the cost of the overall coverage is reasonable.
It is important to remember that the cheapest car insurance may not always be the best option. Companies should thoroughly research the different policies available and ensure that the coverage level is adequate and provides the necessary protection. In addition, companies should ensure that the policy is tailored to the use of their cars, such as if the vehicles are used for business events or customer visits.
The Benefits of Company Car Insurance
Finally, it is important to remember the benefits of company car insurance. Having adequate coverage can provide peace of mind, knowing that even if an incident should occur, the company will be financially protected. Insuring company cars also helps to ensure that any employee drivers are safe and that they remain compliant to the law. In addition, the cost of premiums can be reduced through safety measures, such as installing safety equipment, as well as comparison shopping.
