If a business uses vehicles, the owner should ensure that they have a solid commercial vehicle insurance policy. These policies protect businesses in several ways, but there’s a significant amount of misinformation going around. To clear up these misconceptions, below are some of the most common insurance myths and the truth behind them.
All Employees are Covered When Driving Company Vehicles
In some instances, commercial policies specify that a driver is only covered if his or her name is on the document. Therefore, it is the business owner’s responsibility to ensure driver rosters are kept updated, and that non-listed employees know they can’t drive company cars.
Seasonal Businesses Can Cancel Coverage During the Off Season
Those who run seasonal businesses may be tempted to buy commercial auto insurance in Wichita KS only when the company is open. However, it’s a bad idea for many reasons. First, vehicles will lose protection. While there won’t be any road accidents, vehicles can still be damaged by theft, vandalism or a sudden storm. Some providers charge more to insure vehicles that have had lapsed coverage. Instead of canceling coverage during the off season, call an insurance agent and ask about reducing coverage to a liability-only level.
It’s Not Necessary to Buy Commercial Insurance for a Personal Vehicle
If a business owner only uses his or her car for personal reasons, a traditional auto policy will be adequate. However, if the car is occasionally used for business, the owner should ask their insurer whether a commercial auto policy is required.
Premiums Must be Paid Upfront and In Full
Business owners shouldn’t think that they have to pay the entire year’s premium upfront, when most insurers provide an installment payment option. However, using such a payment plan may cause the business owner to miss out on a paid-in-full discount.
It’s Always Cheaper to Bundle Policies
Local insurance agents are great at finding customers the right coverage at a fair price. Because of the commitment to service, agents know that bundling doesn’t always provide the best price on commercial auto insurance in Wichita KS. In fact, some customers can save on premiums if they visit us and use discounts with different providers.
