It is important when insuring your car that it is done correctly so that the insurance company can’t reject your claims. You need to know whether you are insuring your car with private car insurance or business car insurance. Private car insurance is relatively cheaper then business car insurance, as a business insurance car is a higher risk. This is because there is extensive use and puts it at a higher risk of an accident.
Cars that are used during business hours, even if it is a personal car that you paid for will need to be insured for business use. This means that the risk of your insurance car is measured by certain demographics. For example if you involved in an accident on the way to visit a client and your car is insured privately then the insurance company has the right to reject your claim as you are not insured correctly and are not adequately covered. The premiums are higher for business insurance car because they carry more risk.
Insurance for a car can vary depending on a variety of factors. Look around before you decide.
A car is eligible for private insurance if the car is used just to drive oneself to and from work, but does not go outside of this purpose. If you have a home based business and need to visit clients, private use is no longer effective and business insurance needs to be used.
However, this does not mean that you need to accept the idea of expensive cover, but rather compare insurance car quotes and find the best deal for you.