If I register my three vehicles to a business will the insurance be less expensive?

If I register my three vehicles to a business will the insurance be less expensive?

I have 3 vehicles that I would like to register to my business. Each vehicle will have one driver. If I get comparable coverage limits to what I have now, will insurance be any less expensive??


Maybe, maybe not.If the vehicles are owned in a private name, if you want to use them as 'service' class, most likely an insurance company won't take them. Service class is cheapest. But if you use them for Retail or Commercial class, it costs more - but the insurance company is more likely to put them on a commercial (business) policy.Of course, if the vehicles are titled to a corporation, then they aren't eligible for a personal auto policy.If you have drivers under 25, an insurer will either double the rate on a commercial policy, or refuse to take you. Ditto, for bad driving records.Years and years ago, people tried to get out of paying surcharges (because business auto policies don't get surcharged for tickets or accidents or youthful drivers) by putting their cars/pickups on business policies. But the insurance companies caught on.


It will personally cost you less to insure your autos with your commercial policy, but it won't actually cost less to insure the vehicles. If you use them in your business, and you have personal auto policy coverage on them, you have to pay an extra charge because of business usage. If you have them on a commercial auto policy, the extra expense of business usage is already figured in. You should talk to your insurance agent about how is best for you to do this.In my opinion, if the autos are used primarily for personal use and only occasionally used for business, then it would likely cost less to insure them on a personal auto policy with an endorsement covering them for business use. If the autos get a lot of use in your business, then the insurer might require you to insure them on a commercial policy with an endorsement establishing the personal use of the autos.By your question, I am thinking that you own a small business. If you do, it is likely to be in your best interest to have both your personal insurance and your commercial insurance handled by the same agent. It might also be reasonable to have both your personal insurance and your commercial insurance carried by an insurance company that does both personal and commercial insurance.All in all, the money will have to come from somewhere. It will either come out of your personal pocket book or the business pocket book. Actually, the commercial auto insurance costs a bit more than personal auto insurance (at least at the insurance company I work for). However, your agent can really tell you how it will affect you. If you have a lot of business usage on the vehicles, you might have no choice but to go with the commercial insurance. If your business makes a lot of money, and you want to save yourself personal money, you still might want to go with the commercial policy . Where I work, the cost for insuring a personal auto with an endorsement for business use is less than insuring the same auto as a commercial auto. (I know. My husband is a pastor and we are required to add the business use on because he might happen to take a parishioner in the car with him somewhere. On the other hand, he is a chaplain at a retirement facility and if he were to take someone with him from the facility, his company would require him to drive a company vehicle, but it is still the rules of my company that the auto has to be endorsed for business use. Insuring our vehicles on a commercial policy would cost us more than simply endorsing our personal policy for business usage.)The insurance company I work for has a lot of business owners who insure their personal autos on a business policy. There is one business we insure in a midwestern state. There is not one single location outside of one particular midwestern state. However, in that policy package* we have a work comp and auto policy in Florida. The owner of the business is retired and has his personal autos and his housekeeper in Florida insured on his commercial policy even though it would cost less to insure the auto on a personal policy. (The work comp on the housekeeper would cost the same either way.) His business makes a lot of money. It is one of the perks of being the owner. (However, he can't insure his residence on his commercial policy package.)The thing you need to consider: Just how much business usage will the autos get? Is your business big enough to afford you that perk if you don't actually have to get them insured on a commercial policy? You will need to discuss this with your agent. He can help you determine if you really need commercial or not. If you don't have to have commercial, he can get you a quote both for personal auto with business use endorsement and for commercial with personal use. You can figure out which will be best for you. You should discuss all options with him. There are also other matters that may need to be dealt with depending upon your situation. Your agent should be able to discuss this with you. (I'll run out of space on Yahoo Answers before I could explain all of the possible courses of action that can be done with possible endorsements on a commercial policy to handle all of the issues that could be encountered. And I don't know just what your actual situation is to tell if they would apply to you.)* To all of the insurance people out there, yes, I know that not all of the parts of the insurance policy package to which I referred are actually eligible to be part of a policy package by the "correct" definition. My company makes policy groupings for insureds by their needs and refers to them as policy packages, but uses the "correct"definition to determine discounts.Source(s):AU (Associate in Underwriting) designation. 15 years in property and casualty insurance (2 years personal lines of insurance, 13 years of commercial lines of insurance)



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