Does Fleet Insurance Cover Personal Use?
Do you have a car insurance policy with your auto insurer? Did you know that most personal policies do not cover any damage caused by accidents involving non-owned vehicles? This means that if you get into an accident while driving someone else’s vehicle, you won’t be covered under your personal policy.
In order to protect yourself from financial ruin, make sure that you purchase comprehensive coverage for your personal automobile. It may seem expensive, but it will save you thousands over the years.
I'm going to tell you how to find affordable car insurance quotes online, and explain why you should buy comprehensive coverage instead of just liability only.
Types of Fleet Insurance
Fleet insurance policy may have different level of cover. Optional extras significantly affects cost of fleet insurance. Besides levels of cover, other factors are business purpose, vehicle type, driver policy, legal requirement and clean records. For example, taxi insurance is very expensive.
Individual driver is usually not taken in consideration, because there are too many drivers and because employees may change during policy year.
Basic Liability Insurance (BLI) is one of the most common forms of insurance available to drivers. It covers your vehicle against damage caused by you or any other person driving the vehicle. BLI provides protection up to $50,000 per accident, regardless of who was at fault. The coverage is usually limited to liability only, which means that if someone else’s property damages your car, they won’t get paid.
Comprehensive Cover
Comprehensive Liability Insurance (CLI) is generally considered to be the next step up from BLI. This type of insurance is designed to cover your vehicle against accidental damage caused by you or another driver. If you cause damage to someone else’s vehicle while driving under this plan, then you would be responsible for paying them back for their repairs.
Named Driver Liability Insurance
Named Driver Liability Insurance (NDLI) is a relatively new form of insurance that protects you against claims made against you by people whose vehicles you drive. You can choose to purchase NDLI when you buy your first car or when you renew your existing auto insurance policy. Your insurer will provide you with a list of approved drivers so that you don’t have to worry about choosing a replacement driver yourself.
Similar Insurance Policies include:
• Comprehensive Coverage – Similar to CLI, this kind of insurance covers your vehicle against accidental damage due to you or another driver. However, unlike CLI, this insurance doesn’t protect you against damage done to someone else’ vehicle.
• Collision Damage Waiver/Loss Damage Waiver – This kind of insurance pays for repair costs incurred to your vehicle after an accident occurs. It doesn’t pay out for damage to the vehicle itself.
• Third Party Property Damage – This kind of insurance covers your car against damage caused by third parties such as pedestrians, animals, etc.
Personal Usage
The most common reason for commercial vehicle insurance policies to exclude personal use of the insured vehicle is because the driver may be liable for damages caused while driving under the influence of alcohol or drugs. This could include accidents involving pedestrians, cyclists or motorcyclists.
In addition, commercial vehicle drivers often drive more miles per day than private car owners. As such, they are exposed to greater risks of injury or death due to road traffic collisions.
Commercial vehicle insurers also tend to charge higher premiums for commercial vehicle insurance compared to those charged for private passenger cars.
This means that commercial vehicle owners pay more for their insurance premium than private car owners do.
However, there are ways to reduce the cost of your commercial vehicle insurance. For example, you can lower your premium costs by choosing an insurer that offers discounts for safe driving records.
You can reduce financial risk by purchasing additional optional extras, such as collision damage waiver (CDW) and comprehensive insurance. These add-ons are designed to protect against accidental damage to your vehicle and its contents and get you peace of mind.
Final Word
In conclusion, if you have personal use insurance through your employer, you may be able to claim reimbursement for expenses related to your hobby. However, if you're using your own equipment, like a boat, plane, or motorcycle, you won't be covered under most policies. Check with your insurer before taking off on any adventures.