Car insurance premiums are calculated using the same factors for both personal and company car insurance. When you obtain car insurance quotes, the insurance agent will ask you a variety of questions, including what the use of the car will be; pleasure, commute, or business. They will also want to know the annual distance driven. The answers to these questions will influence the final premium that you are charged.
Commercial auto insurance will provide financial protection for vehicles that are used for business purposes if they are driven by owners or employees. This policy may also cover equipment that is added on to the vehicle. Both personal and company car insurance policies usually require the registered owner to have liability insurance as a minimum coverage. The difference between the two is that company insurance usually requires a higher limit of liability. Both policies will pay out for damages to personal property and injuries that may be sustained in an accident. Company car insurance also protects the company against possible lawsuits that may stem from a collision or claim.
Many factors are taken into consideration when car insurance quotes are given to companies. The type of vehicle, the driving records, and the use of the vehicle are the most important factors. When a company adds a new employee on as a driver to their company car insurance policy, they are required to provide the insurance company with the employee's driving record. Any tickets, suspensions, and accidents will affect the premium. The reverse is true as well. If an individual obtains car insurance quotes for a personal vehicle, their driving record and insurance history while driving a company vehicle will have an impact on their quotes.
If a driver has an accident in a company vehicle, this accident will also reflect on their personal driving record. This means that if they ever quit that particular company and start to driver a different vehicle, their insurance premiums will be affected. Basically, a driving record follows the driver, no matter which type of vehicle they choose to drive. This can have negative effects on a company as if a driver is in an at fault accident, the company can be named in a lawsuit because they are the registered owner of the vehicle.
It is important to remember that your driving habits will influence the amount of premium that you are charged for your car insurance. It makes no difference if you are driving a company vehicle or your own personal vehicle. Having a poor driving record not only affects your rates, but it can also impact your chances for getting a job that requires you to drive a company vehicle.