Proper Classification of Your Business Vehicles Can Reduce Your Business Car Insurance Costs

very important for Texas business owners toare covered on their policy where ever their car
understand car insurance from a commercialtravels. This is not necessarily true. Most
perspective. Many small business owners andcommercial autos are used in a specific manner
artisan contractors often assume that theirduring the course of business operations. Driving a
vehicle can be properly covered under theircommercial vehicle for personal reasons, or taking
commercial insurance policy. This is rarely theit to a location(s) not pertaining to the nature of
case. Simply having a business car insurance policythe business and the vehicle’s intended
may not be enough. It is necessary as well foruse, can result in liability losses of the automobile
the business insurance insurer to be thoroughlyis involved in an accident. This is a tricky call to
informed as to the specifics of the risks the carmake at times, and requires the assistance of a
will be exposed to, in order for the policy to bothbusiness car insurance agent who thoroughly
reflect the use of the vehicle and to cover itknows insurance laws and can weigh the
appropriately. TAHI makes it easy for thevehicle’s use against the coverages
business owner to describe clearly the usage ofenumerated in the policy itself. If the policy needs
the vehicle. We have worked with contractorsamending or replacing, TAHI can do so to make
from all industries over the past 25 years and arecertain that gaps in coverage are eliminated and
familiar with almost every business model inliability is reduced as much as possible.
Texas. Getting a good, clear understanding of theAnother common coverage question we are
way the vehicle is used and the industry it is usedfrequently asked is the question of “Who
in helps us take advantage of classificationis covered on a business car insurance policy? Can
opportunities that give the owner the very bestemployees use their personal automobiles in my
business car insurance rates and coverage.business?” The answer to this is again a
It is never a good idea to use personal autovariable based upon the type of business, type of
insurance for a business car, truck, or van. Anylicense the driver holds, and the vehicle itself. It is
vehicle used in business should be registered in thenot as cut and dry as the laws pertaining to
name of that LLC, corporation, or partnership.personal auto insurance, which allows any licensed
Registering the vehicle and insuring it under thedriver not excluded by name to be insured under
business name allows the carrier to properlythe policy. In order to determine driver eligibility, it
assess the exposure the business itself is subjectwill probably be necessary to include
to when the vehicle is used. Business car“Drive Other Car” and
insurance can then be written that will cover the“Employers’
company and the automobile against these risks.Non-Ownership” coverages in the policy.
It is crucial to understand exposure and how itCall us today for free information on these
impacts policy coverage in general.options.
Many business car insurance holders assume they