Why You Can't Afford to Not Have Insurance for Your Business Vehicles
A critical aspect of running a successful business involves managing funds properly and reducing overhead as much as possible. Some business owners try to cut corners to save money, and you may be thinking about skimping on business car insurance or even canceling your coverage altogether. Car insurance is required on all vehicles in most states, and this includes commercial vehicles. In fact, there may be additional coverage requirements that you must meet for your commercial vehicles. Your business could face hefty fines and other penalties if your vehicles are not properly insured at all times accounting to state law. In addition to meeting the legal requirements for coverage, there are a few other reasons why you need to purchase a comprehensive policy and actively maintain it.
Vehicle Repairs and Replacements Can Deplete Your Funds
Accidents, auto theft, vehicle fires, bad weather events and more can cause damage to your vehicles or even a total loss in some situations. Your vehicles are an asset to your business with financial value. They also likely are used in a functional and beneficial way for your operations. You must have the financial resources available to repair or replace your vehicles as needed. It may cost tens of thousands of dollars or more to replace even a single vehicle that has been totaled in an accident. Car insurance provides you with the coverage you need, and some coverage may even provide you with rental car coverage so that your company can continue to function as needed even when one of your vehicles is out of commission.
Liability Can Be Expensive
Many accidents and mishaps related to commercial vehicles involve a liability lawsuit. Your company could be held financially liable for the actions or negligence of your drivers that cause financial loss, pain and suffering or other negative effects to other people or businesses. Some businesses have been sued for hundreds of thousands of dollars or more. Car insurance usually has a liability component that may pay for your legal expenses as well as liability expenses up to the limit of the policy. While you may still have to come out of pocket to pay for some expenses in a very serious accident with a high claim amount, insurance can protect you from more significant financial loss. Without coverage, your business could be forced out of business, and you may even be sued personally by the injured party.
Affordable Car Insurance Is Available
As you can see, there are significant expenses that you may incur if you do not have commercial car insurance for your vehicles. You may not think that the premium cost is worth paying for the slight chance that an accident or other mishap may happen. However, car insurance may be more affordable than you might think. You can easily compare commercial rates for cheap car insurance today. Some insurers will bundle your policies or offer other types of discounts based on specific factors. While you may be concerned about the cost of coverage, you can see that you actually cannot afford to be uninsured. The Internet makes it convenient to compare rates, and you can adjust your coverage types and limits as needed to make the commercial coverage more affordable for your budget.
You understandably want to decrease overhead as much as possible, but commercial insurance is not an expense to entirely eliminate. You may be able to reduce this expense by shopping for a lower rate, and you can also find other ways to cut back on spending in different ways. For example, rather than entirely eliminate auto coverage on commercial vehicles, consolidate trips to reduce fuel expenses or make energy efficient improvements around the office to save money each month. By taking these steps, you can enjoy the financial protection that a commercial auto insurance policy provides while also meeting the financial goals you have for your business now and in the future.