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What you must know about Commercial Motor Insurance

Commercial motor insurance or commercial vehicle insurance is important insurance for your business to hold if you use vehicles within or for your business.
Here are the key things you must know about Commercial Motor when considering commercial vehicle or motor insurance policy for your business. 
Does personal car insurance cover me when driving for my business? 
The short answer is no. Personal car insurance is designed for non-commercial car usage and may leave your exposed if you start using your vehicle without an appropriate commercial vehicle insurance policy in place. 
Personal car insurance won’t provide adequate coverage for you if you are using the vehicle for commercial or business purposes. 
Using your car for your business can be something that sneaks up on you. Before you know it, a once-off use of your personal vehicle may become more frequent vehicle usage in your business.  So you need to be careful and think in advance about your needs and requirements. 
One tip: You may be able to get your personal vehicle insurance extended to include some additional commercial coverage or if needed, you’ll require an additional commercial motor insurance policy. Talk with an insurance broker to better understand your requirements.
How to save on your commercial motor insurance? 
Commercial motor insurance premiums are driven by the businesses individual requirements and the businesses claim history. In addition, there are key areas to consider when considering commercial motor insurance. Some key areas include:
  1. The level of cover you require within your commercial motor insurance; coverage can scale from third-party property damage up to fully comprehensive. 
  2. The type and value of the vehicles being insured. 
  3. The volume of vehicles you are looking to insure; whether it is a one-off commercial vehicle or a fleet of vehicles.
  4. The claims history of your drivers of your vehicles and of the company taking out the insurance. 
  5. Where and how you operate your vehicles and where they are stored.
  6. Any modifications or accessories that your commercial vehicles require.
Working to understand the reasons behind the cost of your commercial motor insurance, can help you to identify ways you may be able to improve your business operations and find some efficiencies in your commercial motor insurance premiums. 
General Advice Warning: This advice is general and does not take into account your objectives, financial situation or needs. You should consider whether the advice is appropriate for you and your personal circumstances. Before you make any decision about whether to acquire a certain product, you should obtain and read the relevant product disclosure statement.

All information above has been provided by the author.

Channelle Ricketts, Urban Insurance, AFSL 233750

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