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If your job requires you to use your
personal car for business purposes, you need
to read the following: Insurance for
business usage is not the same as personal
usage insurance – and if you work for
yourself, driving around town is considered
business usage by South African insurance
companies. Contacting insurance companies
such as
First for Women,
Dial Direct
Insurance,
Budget
Insurance Brokers or even
Auto & General
for an online car insurance quote will help
you to establish what your business
insurance requirements are – especially with
regards to your car insurance! Online car
insurance quotes are also one of the
easiest ways of finding out more about
business insurance rates to cover your
personal car.
They will also be able to give you an
indication about car insurance rates and
business usage conditions. Additionally, an
insurance consultant will be able to answer
all your questions about business usage car
insurance and the implications for your car
insurance rates.
For example: will you need to apply for a
commercial insurance policy, or does your
personal car insurance policy make
provisions for business usage? Also, does
your employer have insurance to cover the
vehicle your rent while on a business trip?
Bear these car insurance tips in mind
If you need to use a rental car during a
business trip, it is always wise to inform
the rental service that you are using the
car for business purpose. Also be sure to
check that your company name is on the
rental reservation. Be especially careful
after hours, as your company’s rental car
insurance policy may only cover you while
you are using the vehicle for work purposes.
Does your personal car insurance rate
include rental coverage?
If your personal car insurance policy has
rental coverage, your rental policy may well
cover the cost a business-related accident
claim that isn’t covered by your company’s
business insurance policy – especially after
working hours.
Don’t use your own car for business
purposes unless your employer has car
insurance that will cover your private car
in case of an accident. If this is the case
it is very important to get the relevant
policy information and conditions of
insurance coverage from your employer before
using your car for business purposes. Even
if it means increasing your own car
insurance rates, getting business usage
cover when you’re regularly driving for work
is vital.
Travelling to and from work, however,
is usually considered to be private usage.
If you are involved in a car accident, it
is critical to know who at your company to
contact in order to report the accident. It
is better to make the claim on your
employer's
commercial car insurance policy, as this
avoids making claims on your personal
insurance and thereby increasing your
personal insurance policy’s monthly
premiums.
If you have to use your own car for
business purposes on a regular basis
(delivery staff, sales reps, etc.) it would
probably make sense to investigate taking
out a commercial insurance policy. Getting
multiple insurance quotes online will help
you to get an idea of what’s on offer in the
South African insurance market. |
