Why your company car needs insurance

Content provided by a guest contributor.

Having a company car can be hugely beneficial to your employees and your business itself. Your employees will be able to get to and from work easily and you will have more productive staff because of this. A company car can also help to represent your company in a positive light to clients, allowing you to bring in more business, and you can even use a vehicle wrap for maximum brand awareness.

It is very important to insure your business assets, especially for your company car. You will need to maintain it and service it regularly and make sure that the petrol tank is filled when needed. You will also need to take out insurance on your company car, as it will be used daily and there is no guarantee that other drivers are as careful as your employees. Below are just some of the reasons why your company car needs insurance.

Protect your employees and others

One of the major reasons why you need insurance for your company car is that it will protect your employees and other drivers. If the worst should happen and your employee is in an accident, the insurance will cover the damages whether they are the cause or not.

Having business insurance for your company car will you money and ensure that your employees are protected. Be sure to take out comprehensive insurance, which will cover every eventuality. This includes third-party coverage, fire and theft, and will allow you to have peace of mind when your employees use the company car for a business trip. Other drivers will also be protected in case your employees are in an accident and are the cause of this accident.

You will save time and money

Having to deal with damage from an accident, hail or from other unfortunate incidents can become expensive and time-consuming if you do not have coverage for your company car. But with insurance, this will be taken care of in an effective and affordable manner, allowing you to save time and money on dealing with the aftermath.

Comprehensive vehicle insurance will usually include the towing of your car if this is needed, and some even offer car hire if the car is out of commission for a while. You will also find that roadside assistance is offered, so if your employees experience a flat tyre they will be able to reach out for help. The money that you save from insuring your car can be used for other aspects of your business, such as improving marketing or customer service.

It is legally required

One of the reasons why you need business asset insurance for your company car is that it is legally required by lenders and dealerships. They need to make sure that the car will be covered in case of emergencies, especially if it will be used for business purposes. This also helps them to alleviate any risk that could be associated with your vehicle finance.

When you are purchasing a new car, whether it is for personal or business use, you will find that your bank requires you to take out insurance on your car. Not only will this protect your business and employees, but your bank or lender will also no longer see you as high-risk and will be more likely to grant you a vehicle finance loan. Find an insurance company that specialises in company cars, or you could look into comprehensive insurance and register the car in your company’s name.

Your employees might go on long journeys

If your employees will be going on long business journeys, it is a good idea to insure your car. This will allow you to keep your employees safe and prevent them from having to deal with difficulties along the way. If you have opted for roadside assistance, they will be able to reach out for help should they break down or experience a flat tyre.

A long journey can be stressful, but having insurance will give your employees peace of mind and help them to focus on the job at hand. You should always make sure that the car is driven well and safely at all times. In the event that there is an accident during a business trip, you will not have to pay out of your own pocket, which is highly beneficial.

Care for your company car

You might not think of your company car in the same way that you think of your own personal car, but you should always ensure that you are taking care of it and that it is insured. This is because your employees and others will be protected from damages and you will save time, money and effort. Another reason why you need car insurance is that it is legally required. Investing in this is vital for keeping your company car safe, secure and protected.


The content in this article was provided by Rogerwilco – a South African marketing agency based in Cape Town.

No votes yet