5 Car Insurance Terms All Business Owners Should Know

lamb financial groupObtaining car insurance for your organization’s fleet of vehicles may seem like a cakewalk. Nonetheless, business owners too often find themselves underinsured or overpaying because of a misconception.

The first and most important thing for employers to remember is that it doesn’t matter who owns the vehicle. If someone else drives a vehicle on your behalf, you can be liable in the event of an accident.

Here are five car insurance terms you need to know. Armed with this knowledge, you may avoid having too little or too much insurance for your fleet.

1. Comprehensive Coverage: Don’t let the name fool you. Comprehensive does not mean that the policy covers everything. Comprehensive only covers damage to a vehicle as a result of something other than a collision, such as vandalism or hail, for example.

2. Collision Coverage: This type of vehicle insurance covers the cost to repair any damage to a vehicle in your fleet after hitting another car or object.

3. Bodily Injury Liability Insurance: Once again, the name can be deceiving. Bodily Injury Liability Insurance only covers the medical expenses of innocent third parties, not those of your employees, after an accident.

4. Personal Injury Protection: PIP insurance covers your own bodily injuries as a result of a car accident.

5. Property Damage Liability Insurance: This type of car insurance coverage will pay to repair the damage to another vehicle or property because of a collision with one of the vehicles in your fleet.

Now that you have brushed up on your insurance terms, obtaining insurance for the vehicles owned by New York business might be a piece of cake after all! But why not put icing on the cake by learning how you can reduce your auto insurance costs?

One of the surest ways to save on auto insurance is by providing Driver Safety Training Sessions to your employees. Contact Lamb Financial Group and we’ll help you find the right training program for your business needs with our commercial fleet consulting services.

 

Photo via Kjpargeter / Shutterstock

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