Differences Between Business and Personal Car Insurance

By Colin on Tuesday, December 27th, 2011 | 2 CommentsThe difference between business and personal car insurance are many. This as the names suggest comes about as a result of the use of the car and in this case either for personal or commercial purposes. In order for you to better understand car insurance, it is necessary for you to know the facts about these types of car insurance individually as it will also clearly show you the differences between the two.

Personal car insurance
As the name suggests, this type of car insurance policy is only written for individuals who  drive their vehicles for private use. These can either be driving to work, school any other task which is personal. This particular  insurance consists of liability coverage. Before driving legally in South Africa, you are required to get a physical injury as well as a property damage liability coverage. Every personal car insurance policy taken up is required to contain this specific coverage.
Private car owners can also include comprehensive coverage as part of their personal car insurance. This way they also have their cars insured against vandalism, or in case it is stolen or damaged in other ways other than in a collision with another vehicle.
Business car insurance
When driving a company vehicle as you perform various official duties , your personal insurance policy will not cover you in case of any eventualities. This is because vehicles used for commercial purposes require a business car insurance policy. This has to be taken up by the company that owns the vehicle. This type of insurance not only covers the vehicles but the employees as well. This type of insurance is a requirement for any business and the driver as well since who is an employee of this company. Whenever an accident occurs, the business as well as the employee can be held responsible for any damages caused.
Key Differences between business and personal car insurance:
Both business and personal car insurance consists of a similar type of coverage. The difference comes in the fact that they cover people in varying situations. The main difference between these two insurance policies is the fact that business car insurance can be written to cover numerous vehicles within a single policy while the personal car insurance cover will only cover one vehicle per policy.
Unlike with personal car insurance,  a business car insurance will also cover several employees as long as they are named in that particular policy. Through a business car insurance, you can also have all the employees of a particular firm fully covered. This as previously stated will be beneficial to your firm as it will offer your employees the much needed protection against any injuries which may come about as a result of car accidents.
Even with the mentioned differences, when looking for the best personal or business car insurance in South Africa, it is necessary that you look beyond the cost of the insurance.

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