Right after you have purchased a vehicle, you want it out on the road but it is your part to play that you need to ensure its insurance against any incidents. In case if you incur any, it is going to cost you a lot. So just to prevent heavy expenses you need to check your car in with an insurance company. You also need to choose the right company and for doing so you need to know what you need to look for. So if it is your first time, you need to look for a lot of factors apart from affordability otherwise it might cost you even more in the long run.
Commercial Vehicle Insurance is not something that you should take lightly if you own a company vehicle or intend to use your personal car for work purposes. Take up one today! One good provider is Allegiance Associates, and they also provide a wide range of insurances you can consider for your company. Check out their site here today: https://www.allegiance.com.sg/commercial-insurance/commercial-vehicle-insurance
Read this article below by Lynnette Goh to find out the other factors you need to look for.
What you need to look for when buying insurance for the first time
The annual premium of a policy is basically what you pay every year to be covered. Your premium depends on the company you go with, of course, but also what is known as the Risk Factor Rating System. Insurance companies determine how likely you are to get into an accident based on factors like your age, your gender, driving experience, and so on. The more accident-prone you are, the higher your premium. Read more here
There is also some additional amount you need to pay out of your own wallet if you want to lay claim over the rest. These costs usually are higher in order to motivate you to drive around with caution and prevent any harmful accidents. This is the case even if your car is insured. Various parts of the terms and conditions lay out by the company will point out the excess costs that you will incur incase of third parties. Moreover, every insurance company has its own official workshop where you can handle your repairs. You can check whether the policy applies to selecting out of these certain lists or you can choose them on your own. In instances when you are stuck in the workshop, your company can watch over and provide replacement for your car.
You can also mention your own terms you feel comfortable with and your company might fashion the insurance policy in customized manner. However most of the Singaporean companies do not do that. You can choose between personal car insurance and a commercial one. To help you narrow down your choice to either one, read this article below by Tiffany to clear out any confusion between the two,
Personal car insurance or commercial car insurance- which is better for you?
A personal auto insurance policy covers all things that are considered “personal” in nature. These include your drives back and forth to your office for work, trips to the grocery store, and leisure activities. Your auto policy covers the vehicles and household drivers you specifically list on the policy and is geared towards protecting individuals that use their car for regular personal purposes. Read more here
A commercial policy for insurance is mostly fashioned to help the owners conduct their business without any worries. Very good examples of an insurance policy covering in full are of the transport or delivery services being assured fully in case of damages. However their rates differ greatly.
Your car might be categorized as commercial if it is used just for business purposes and not for handling your personal objectives. This also includes travelling to and from work. This is usually taken up by transporting services such as taxi service or deliveries such as those of flowers, car parts or pizza.
On the other hand, a personal insurance policy will include only those which have the aim of handling personal tasks. The weight of the vehicle also judges if you are using it for a specific use. For example, trucks or buses are almost always taken up under commercial insurances. Now, you must be wondering why your personal insurance cannot cover for your business; Read this informative article by Insureon to find out all the reasons why.
Why personal car insurance does not cover business driving
It’s riskier than personal driving. If you spend a lot of time behind the wheel for work, you have a greater risk of accidents and vehicle damage. Moreover, it might violate the terms of your personal auto policy. Your contract with your insurance provider covers your car for private use and your policy was priced accordingly. If you frequently use your personal vehicle for work, you may want to consider purchasing a separate business car insurance policy. Read more here
In this scenario, if you are using your private car for work purposes, you are taking on additional and unwanted risk – one that your insurance company did not accept to bear under any circumstances. Therefore, it always serves better to be honest about the utilization of a vehicle and purchase the right one to prevent long term harms.
Taking on a commercial insurance for your vehicle is not as simple as purchasing it from any insurer. You need to find out how much you drive your vehicle, what kind of purpose you are driving it for, etc. A good insurer should ask you about all these factors before giving you a rate for the insurance. If you are not sure, it also helps by checking around with your friends or online if the offered coverage is worth spending on.