A lot of different variables go into choosing the right executive car insurance policy including what vehicles are insured, how many vehicles the company owns, and whether or not high-risk drivers are given access to these vehicles. Continue reading this post for 11 steps on how to make the right executive car insurance decision.
1) Determine What Vehicles Will Be Covered
The first thing to do when determining what executive car insurance to get is figuring out which cars will be covered. In some cases, a business may only need coverage for the one or two company-owned vehicles that will be driven by executives. However, if a business has many drivers with varying driving records, it may be better to go with an umbrella policy that covers an entire fleet of vehicles and all drivers.
2) Decide Whether or Not High-Risk Drivers Will Have Access to Company Vehicles
A big part of determining executive car insurance is knowing who will be driving the company cars and whether or not those people fall into a high-risk driver category (such as having a history of moving violations, DUIs, or accidents). A company needs to consider the likelihood that any executive will be involved in an accident and decide whether or not they should purchase additional insurance for those drivers.
3) Understand How Much Liability Coverage Is Needed
Company-owned vehicles need some amount of liability coverage to protect the business in case of accidents. It’s helpful to have a policy that covers not just the company’s liability but also any injuries or property damage caused by employees who are driving the vehicle without authority.
4) Know How Much Uninsured/Underinsured Motorist Protection Is Needed
In most cases, uninsured and underinsured motorist coverage won’t be needed for company cars but it’s still important to understand how much protection is necessary. Underinsured motorist coverage protects the business from accidents caused by drivers who were at fault and won’t have enough money to pay out-of-pocket expenses (the driver doesn’t carry enough bodily injury liability coverage). Uninsured motorist coverage essentially does the same thing, but for drivers without bodily injury liability coverage.
5) Find Out Whether New or Used Cars Need Specialized Coverage
If a business owns both new and used cars that are being driven by employees, it’s important to determine if the insurance policy needs to include specialized coverages for each type of vehicle. For example, special protections may be required for leased or company-owned used cars that are being driven by employees.
6) Consider Adding Extra Coverage if Company Car Is Stolen
Whether a company car is new or used, it’s vital to have comprehensive coverage if the vehicle is stolen. Another option to consider is purchasing guaranteed auto protection (GAP) which helps pay for remaining payments when a car is totaled in an accident or stolen.
7) Decide Whether to Insure Employee’s Personal Cars if They’re Driving Company Cars
A lot of executives drive their own cars while using company vehicles for business purposes. In some cases, the best executive car insurance policy for this situation may be one that reimburses the company for any damage that’s caused by an employee’s own vehicle (this would be similar to the company covering its own liability).
8) Discuss Extra Coverages with an Insurance Agent
Once a business understands what type of executive car insurance it needs, the next step is receiving quotes from different insurance companies. When receiving those quotes, make sure to talk with an agent about any additional coverages that may be helpful. For instance, rental car reimbursement is important if a business owns executive cars but doesn’t have enough vehicles for all executives to drive while away from their homes.
9) Figure Out How Many Cars Need to Be Covered by One Policy
It’s possible for businesses to get better deals when purchasing executive car insurance for multiple vehicles. For example, when looking at quotes, find out if it would be cheaper to combine all cars owned by the business into one policy or get separate policies for each vehicle.
10) Get Coverage that Covers Personal Use of Company Vehicles
Many businesses don’t include personal use of company vehicles in their executive car insurance policies. Instead, the company chooses to cover any damage resulting from personal use of the vehicle (up to certain limits). The main reason for this is because business owners want their employees to be completely honest about any accidents that involve company vehicles, regardless of whether or not it was during personal use.
11) Inquire About Personal Accident Protection
Although some business owners want to limit personal use of company cars, it’s important to understand whether or not this coverage is included with the executive car insurance policy. Personal accident protection will cover medical expenses if an employee is injured while using a company vehicle for non-business purposes (including injuries sustained in a motor vehicle accident). It’s often necessary to have personal accident protection to be eligible for discounts on car insurance premiums.
Do most companies cover personal use of company cars?
Some businesses include personal use in their executive car insurance premiums while others choose to have employees pay for any damage they cause while using the vehicle for non-business purposes. In some cases, a business may not want its employees to be completely honest about accidents that happen when they’re using the vehicle for personal reasons, which is why it’s important to set the rules before adding personal use coverage.
How can a business get better executive car insurance rates?
When getting quotes from different companies, make sure to ask about extra coverages that may be available besides what’s included in a basic policy. For instance, adding rental car coverage can help if an executive needs a vehicle but there aren’t enough for everyone to drive.
How does personal accident protection work?
Personal accident protection is coverage that helps pay for medical expenses if an employee is injured while using the company’s car for non-business purposes, which could include driving it home. This type of coverage isn’t always necessary, but it is something to consider when getting quotes because businesses can save money on premiums by having employees purchase personal accident protection.
Is there any way a business can get reimbursed for damage done while an employee uses the car for personal reasons?
It’s possible for a business to have extra coverage that reimburses the company if an employee causes damage while using the vehicle for non-business purposes. However, having this type of coverage isn’t always necessary because it can increase premiums dramatically.
What other types of car insurance are included in executive car insurance?
In addition to the usual coverage, executive car insurance also protects a business from legal responsibility if it provides company cars for its employees. It’s important to have this type of protection because it means that a company won’t have to pay for damage done by an employee who was using a company vehicle without permission.
To Bring Things To A Close
You’ve read everything about what is the best type of executive car insurance, you know all the facts and figures. Now it’s time to make a decision on which company gives you the right coverage at an affordable price. The 11 steps below will help guide your choice in making this important purchase for your business. So take some deep breaths, pour yourself a glass of wine (or two) and let us walk through these eleven steps with you! Comment below to share how many of these tips helped guide your final decision or if there were any other points that we didn’t cover here that made up your mind when deciding how much out-of-pocket expense was worth going forward with?