Paying TOO MUCH for Auto Insurance
A woman walks into the restaurant you own, and is tripped up by a nail sticking out of the floorboards. She seems fine, but a week later she is back with an attorney and a neck brace. Apparently she hit her head in that fall, and isn’t doing so well. Or perhaps you are a mechanic and a customer wandered into your shop and cut his leg. Perhaps you own a pet store and a little girl got a nasty bite from sticking her fingers in the mouse cage. Whatever your business, liability is just a part of the cost of doing business.
It is almost impossible to run a business without liability insurance, and in many places it is a legal necessity as well. Business insurance covers liability cases so that a risk you cannot afford (like paying someone else’s medical bills) is replaced by one that you can afford (such as a monthly premium).
Other types of liability include fire legal liability, which means that you are the liable party in the case of a fire. If you forget to turn of a space heater before you head home for the night and this results in damage to your landlord’s property, then you are liable and the damages are covered by the fire legal liability part of your business insurance.
Liability is not the only type of insurance to be covered by business insurance. Business insurance can also function like a home owner’s insurance policy for the office, protecting the building (if you own it) and the equipment and possessions that are inside. What responsible homeowner does not have his home protected against fire? Shouldn’t the same precautions be taken for your business as well?
If your business were to be destroyed, a business insurance policy would cover things like desks, chairs, seating in your reception area, computers, equipment, and anything else of value that is a part of your business operation. Business insurance can also provide coverage against things like loss of income, earthquakes, and in some areas even flooding.
If a natural disaster takes your business away from you, then your business insurance policy is there like an umbrella, helping to protect you and your family from the losses and breaking your fall, so to speak. Your business insurance policy is there to help you rebuild and go on with your life.
If you are an employer, you are also required to have worker’s compensation insurance. This insurance protects you in the event that one of your employees in injured on the job. Your insurance will pay for treatments for your injured employee.
Other insurance might include insurance for your company vehicles in the case of an uninsured or underinsured driver, health insurance for yourself and your employees, and life insurance. Taking good care of your employees and offering benefits to them is a sure way to attract and keep the best employees possible.
One little accident could just about destroy a small business unless that business is insured against the disaster. If you could prevent an emergency situation, why wouldn’t you? Taking care to make sure that your business is insured properly and thoroughly is only one step toward running a successful business, but it is a vital one. Insurance is not an option, it is a necessity.
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How much would insurance for running a business cost?I was writing out a business plan for a carpet cleaning business and I'm trying to understand how much an insurance expense would cost. I don't have any idea. Could anyone give me an idea, and is there a way to roughly figure out what a businesses insurance expenses would cost for anything like a computer recycling company or running a bar? Any help would be greatly appreciated.
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Posted by American Car Insurance on April 9th, 2009 filed in business insurance | 10 Comments »
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April 9th, 2009 at 4:51 am
I believe in the free market determining these things, so I support private insurance. Government is a business like any other, but one that rarely gets held accountable. When you have a monopoly, everyone pays more because of a lack of innovative ideas.
I also think that if consumers know they’ll get lower rates for being a lower risk to the insurer, they have incentive to drive more safely.
April 9th, 2009 at 4:00 am
It all depends on where you are living, the type of vehicle you are driving (which is an expensive vehicle to insure), your credit, tickets, accidents, etc etc. There are so many factors that go into car insurance that the only way you will know if you are paying to much is to call other companies or go online and do some quotes. Your best bet is to call an independent agent and have them look around for you.
April 9th, 2009 at 4:08 am
There's no way to tell, since you didn't give your sex, location, type of car…all things that affect your rates. If the company reviews your record before the next renewal, and it probably will considering your record, expect it to go up more.
When I was was agent, I used to call your kind of policy "vacation business." You need to grow up and behave better on the road, or you may get dropped entirely; then you'll think that $5000 is cheap.
April 9th, 2009 at 7:49 am
Our companies pay 10-15% for most auto policies, some companies pay 20% but that is rare. If there is a youthful on the policy, they don't pay the 20%.
25% commission is excellent.
April 9th, 2009 at 12:46 pm
Try to check this out. An auto insurance company, i heard to offer good coverage.
April 10th, 2009 at 6:01 am
Answer from a General Insurance Agent
Your Aunt is considered a "high risk" driver due to no credit, and no driving history.
She needs to try some other smaller companies. Shop around. A non standard auto insurance carrier will offer her the best rate. there are many non-standard companies that do not even use credit scoring in their premium rate tables, The coverage will not be as extensive as a larger national company but at least it will be affordable, likely about 78 to 98 dollars a month for minimum liability from your aunts description barring any tickets or accident on her current driving record.
All the larger national companies will use her credit score in determining her premium and require at least 3 years, usually 5 years driving history. When they find out she has little or no driving history they will just tell her that she does not meet the requirements for their program due to being a high risk driver. thats just a waste of her time.
You aunt should also consider taking an approved Drivers training or drivers education course. this could save her up to 20 percent on her premium.
Some Insurers are also offering up to 5 percent discount for policy holders who pay their premium by EFT or automatic debit. Just something else to consider.
After having a non standard auto policy for a couple years with no lapses and a decent driving record for say 3 years, your aunt should then have no problem getting good insurance at affordable rates from a Standard company.
Good Luck and Happy Motoring
April 10th, 2009 at 6:24 am
$105.
Vehicles:
1988 Toyota Supra Turbo
1989 Toyota Supra
1993 Honda Prelude.
Full coverage on all. Yes, it's $105 for all three vehicles.
I think it's plenty cheap.
April 10th, 2009 at 5:39 pm
Insurance is very individual because it's based on personal record, sex, age, and a number of other variables such as location, credit rating etc
I was able to save money through a free on-line quoting service at http://gsx1.com/InsuranceComparison.html
They had several links. All I did was fill out their quote request and received back a lot better rates then what I was paying.
I would suggest you get your son to try more than one quote before you settle with anyone, the service is free and there's no obligation so you might as well try it.
Here's some others from my bookmarks:
http://finance.ebookorama.com/ukusa-sele...
http://autoinsurance.guidearticles.com/
http://gsx1.com/Car-Insurance/100.php
If you are searching for a cheap car to insure look for car that is 5-7 years old with good safety features. Something like a Honda Civic or Toyota Corrolla. Those cars get great gas mileage, are reasonable to
insure, and are relatively inexpensive to maintain.
April 11th, 2009 at 3:02 pm
Hi Jessica,
It is hard to say what your insurance will be. It is definitely to your advantage that you have good grades. Be sure to ask for a discount for that. Also, it is cheaper to be added to your parent's policy, so if they have a good driving record, that will help. Another thing you can do to reduce your rates is to take a defensive driving course. See if there is one in your area that is reasonably priced. It will be good for you as well as save you money in the long run.
It is pretty easy these days to get free online insurance quotes if you folks want to put in their details on the online forms. Some companies will take your info. and then in a few minutes come back with the best prices from several different insurance companies. That is what I like to do. Check with a few different ones, because you can get different rates depending on the service you use.
Hope that helps. Safe driving!
April 11th, 2009 at 11:29 pm
i do have Geico and i pay less than $100 a month