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Business Vehicle Insurance

If you need car insurance for business vehicles, you can find out what’s important to look out for regarding your cover here.

What is Business Vehicle Insurance?

To protect your business from financial risks, you can get business motor vehicle insurance. It covers your vehicles against common perils like theft, damage, loss, and injuries or liabilities. Each insurance company in South Africa covers a differing range of perils and has different options available to you.

How Does Business Vehicle Insurance Work?

You agree to pay an insurer a monthly premium in exchange for their covering these perils. They will detail your cover in the commercial auto policy you sign with them.

Any vehicle you have insured that is used for business purposes will be covered financially in the way the insurer has detailed in the policy documents. For example, if one of your commercial vehicles sustains accidental damage, comprehensive cover should pay for the repair costs.

Is Business Vehicle Insurance More Expensive?

South African insurers offer competitive rates to cover company vehicles thanks to healthy competition in the industry. Car insurance for business vehicles is designed to cover risks unique to the business world. That means you get more cover, so you may pay more. You can also cover more commercial vehicles and save on administration costs.

Even if it costs more, in the long run you will save, because business use of personal vehicle insurance will lead to rejected claims. A commercial auto policy covers the vehicle for vehicle use, and personal car insurance covers it for personal use. The distinction matters when you claim.

Who Needs Business Vehicle Insurance?

Anyone using a vehicle for business will need this type of cover. Whether you use trucks, scooters, buses, or vans for your company, you can choose from a range of comprehensive coverages in South Africa. Comprehensive cover is often preferable because it can include cover for medical expenses and free roadside assistance.

When you use cars for business purposes, you face other risks. A driver injury could lead to employee claims, and physical damage or property damage can impact your business. Your vehicles are often on the road more during the day, exposing them to more risk. Business motor insurance is vital to protect your company from the costs of property damage claims and other related costs.

When Is Commercial Vehicle Insurance Required in South Africa?

Our laws do not require that vehicles be insured, but it makes good business sense to do so. Sometimes, agreements with your clients will require that vehicles be insured, for example, when transporting goods. Contractual agreements can also include clauses requiring specific types of cover for your truck drivers and trucks (and other vehicles).

What Does Business Car Insurance Cover?

With the right policy, you can cover legal costs, emergency medical, accidents, acts of nature, theft and hijacking, fire, and explosions. Almost all policies include third-party liability cover and collision coverage. If you want more extensive cover, it often influences your insurance premiums. For the level of protection they get, however, most business owners are happy to pay this amount.

Does it Cover Food Delivery?

The cover you get depends on the insurer you choose to work with and the policy you choose. Check the policy schedule and read through each page to see what types of vehicles and applications are covered. Some insurers offer Courier Delivery Insurance as a specific product, which will be more suited to delivery service companies’ vehicle coverage.

Does it Cover Goods in Transit?

To get cover for stock in transit or goods in transit, it’s important to choose a policy specifically for moving goods. A standard business vehicle policy won’t necessarily cover the loss or damage of goods being transported and may have other limitations.

What About Public Transportation such as a Bus or Taxi?

Some policies exclude vehicles transporting groups of people or specific types of vehicles. You can get bus insurance or taxi insurance that covers your specific risks. It’s best to check the details of your commercial auto insurance coverage before you sign the policy. Your insurer can also explain the details and exclusions of your cover.

Does it Cover Trucks, Bakkies, Vans, and Lorries?

Most often, a commercial auto insurance policy in South Africa will cover bakkies, trucks, vans, and lorries. You may want to choose truck insurance if you’re working with trucks in particular, or 4×4 Insurance if you need to insure bakkies and other 4×4 vehicles. The benefit of choosing such specific short-term insurance for the vehicle is that the cover is customised to risks related to the vehicle type.

Why Would I Need Business Car Insurance?

A personal auto policy can’t cover the business risks of owning vehicles that operate in your day-to-day operations. It’s also wise to cover the financial risks involved in these operations y insuring the vehicles and drivers.

You can get a business vehicle insurance online quote on our website to get the process started and safeguard the financial stability of your operations. Just fill in the form at the top of our page, and the ideal insurer for your needs will contact you!

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