Working at your own pace is such an amazing feeling as a business owner. You have the freedom to work when you want, and you’re your own boss. There’s nothing quite like growing your business and creating your own hours.
Just remember to be insured while you are working and using your car for your business. Auto insurance for independent contractors is so good to have. Let’s look at why it’s so critical for contractors to have auto insurance and how you can find the right insurance coverage for your car. We’ll also look at what commercial auto insurance policies are available.
Why Independent Contractors Should Have Auto Insurance
There are two main reasons why independent contractors should have auto insurance. We will look at them in detail below.
#1 – Commercial Auto Insurance is Required by Law
Personal car insurance does not cover a vehicle that is used for business purposes. It’s good to have commercial auto insurance so that you are protected and abiding by the law. If you don’t get the proper insurance for your company car, you may be convicted of driving without insurance and penalized as a result.
#2 – Employees Could Crash the Company Car
There are pros and cons to having employees. One disadvantage is that they can crash the company car. Auto insurance is essential to have in case this happens. You also have to worry about workers’ compensation.
A common mistake made by small businesses is that they don’t invest in auto insurance and workers’ compensation for their employees. Not doing so can have some pretty severe repercussions.
How to Find the Right Car Insurance Coverage for Your Business
Finding the right car insurance coverage for your business doesn’t have to be a hassle. Just follow these suggestions below, and you’ll find the right amount for your business.
Use Insurance Comparison Sites
Insurance comparison sites are perfect for figuring out which provider and which coverage option is right for you. Simply search for some insurance comparison sites and enter what you’re looking for in car insurance. You’ll then get quotes from insurance providers.
At Agile Rates you will find many types of insurance that suit different people. If you are a driver with many traffic violations, you will find non-standard auto insurance, find the best ones here.
Compare at least three or four different providers and their coverage options to see which one works best for you.
Determine How Much Coverage You Need by How Old Your Car Is
Depending on how old your car is, the amount of coverage you’ll need will be different. Newer cars will need more coverage, while older cars may not. You could get away with not having comprehensive coverage or collision coverage.
There are other ways to find the right coverage for your business as well. You can consult fellow entrepreneurs and see what they use for their business and do some in-depth research.
Commercial Auto Insurance for Independent Contractors
There are several different commercial auto insurance policies for independent contractors. Below, we will look at some of them in detail.
This policy covers your business if you or your employee are at fault for an accident. It pays for damages done to the other person’s car and bodily injuries that the other person might have suffered.
Collision protects your company car from damages caused by the insured driver.
Comprehensive protects your company car from damages done to it by nature, theft, or vandalism.
What It Takes to Own a Business
The freedom that comes with running your own business is exhilarating. Building your dream business takes a lot of work, but it’s definitely worth the sweat and tears. Be proud of yourself for pursuing your dreams and ambitions. Becoming a business owner is no small feat.
Having the proper insurance for your business is essential for making it successful. Make sure that you have what you need to be prepared for whatever may happen on the road.
Peyton Leonard writes and researches for the car insurance site, CarInsuranceComparison.com. Peyton is passionate about helping independent contractors grow and protect their businesses.