Is a vehicle integral to the day-to-day operations of your business? Then chances are you need business car insurance.
If your personal lines insurance company has declined to include a business car insurance add-on endorsement it’s okay… ALIGNED is here to make shopping for business car insurance as easy as possible!
What is business car insurance?
Business car insurance is a type of auto insurance designed to protect vehicles used for business purposes and the businesses that own and operate them. This type of coverage can be purchased as a standalone policy in your personal or business name, but the insurance policy must be in the same name that the vehicle is registered under.
How much does business car insurance cost?
The cost of business car insurance in Canada varies. Insurance providers use several factors to determine the cost of business car insurance, including the age and location of the drivers, the make, model, and year of the vehicles, your insurance claims history, your driving record, and more. For an accurate and competitive quote on your business car insurance, contact ALIGNED Insurance today.
What are the benefits of having business car insurance?
Please note that business car insurance policies vary and can cover a wide range of vehicles, including those your business owns, those your business leases or hires, and those used by your business, even if you do not own or lease them. In addition, business car insurance applies to a wide range of makes and models of vehicles, from vans and trailers to cars and trucks.
Is business car insurance mandatory in Canada?
Yes, business car insurance, just like personal car insurance, is mandatory in Canada. So if you have one or a fleet of business vehicles, you will need to insure them. Each Canadian province has its own regulations surrounding auto insurance. Therefore, you will need to ensure the business car insurance policy you buy complies with provincial requirements. The four coverages below are considered standard (mandatory) in most parts of Canada:
- Third-party liability coverage: This protects you if you are at fault for a collision that results in third-party property damage or bodily injury.
- Direct compensation for physical damage coverage: This coverage protects your business car and its contents if you are not at fault or partially at fault for the accident.
- Uninsured automobile coverage: If you get into a collision with an uninsured or underinsured driver, or if you are the victim of a hit-and-run, uninsured automobile coverage can help pay for the costs.
- Accident benefits coverage: This coverage type will pay for medical expenses, ranging from prescription medications to rehabilitation if someone is injured following a collision, regardless of who was at fault for the collision.
What happens if I don’t have business car insurance?
While business insurance is not a legal requirement in Canada, car insurance is, and if your insurers discover you are using a personal vehicle for business purposes without their prior approval they may cancel your policy and/or decline a claim. Therefore, driving without business car insurance is basically putting you and your business at serious and unnecessary risk. Your and/or your company could face serious consequences if a driver is caught without proper business car insurance. Consequences vary by province but may include hefty fines, license suspensions, and even jail time. Therefore, all Canadian businesses that use vehicles (or even one vehicle) for their daily business operations must insure them and do it properly/right!