If you are using a vehicle for business purposes, you will need to insure this vehicle with a commercial insurance policy, and not a personal plan. Here are a few things that would be considered as commercial use:
- When visiting clients with the vehicle.
- Deliveries or transportation of goods.
- When using the vehicle as a taxi or shuttle service.
- If the vehicle is used for earth-moving or construction.
- When the vehicle is used as a tow truck.
- Heavy trucking fleets.
What is Commercial Vehicle Insurance?
It is a policy that will financially protect you against any loss or damage to, or by the vehicle or fleet you use to run your business.
You can insure any vehicle that is registered in South Africa. These can include motorcycles, cars, bakkies, delivery vehicles, construction/earth-moving vehicles, material-handling vehicles, etc.
Types of Policies
You have the option to choose between the following policies:
Motor & All Risk
This will cover your business vehicle and the equipment you drive around.
Motor & Goods in Transit
This policy will protect your vehicle, as well as any goods that you transport.
With this policy, you have the options available as with any personal car insurance policy:
- Comprehensive cover
- Third-Party, Fire & Theft
- Third-Party Cover Only
As with private car insurance, you can insure the vehicle for its market, retail, or a nominated value.
Depending on the company you get your insurance policy from, you will have the option to insure either a regular driver or multiple drivers. If you choose a regular driver, the insurer will not pay out if the vehicle was damaged while being driven by someone else. The numerous driver options will insure multiple named drivers. A pool driver policy is also available, which will cover anyone with a valid driving license or permit.
What is Covered?
The following may be available in the policy, or as an add-on, depending on the insurance company you opt for.
- Lost key & remote replacement
- Roadside assistance
- Car hire
- Cover outside the borders of South Africa
- Monitoring devices to track your fleet
- Windscreen replacement
- Towing and storage
- Wreckage removal
- Medical costs
- Legal Cover
- Sound system cover
- Canopy cover
- Passenger liability
- Driver belongings cover
- Credit shortfall
- Deposit cover
As you can see from this article, it is essential to get proper business cover for your vehicle when it is used for commercial purposes. We have a separate section for personal car insurance policies.