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Business Vehicle Insurance

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How much does business vehicle insurance cost?

The cost of business vehicle insurance in New Zealand typically averages between $50 – $100 per month. The cost  can vary widely based on several key factors. These elements include the type of business, the vehicle’s usage, the coverage options chosen, and the claims history.

What is the average cost of business motor vehicle insurance? 

Businesses in New Zealand typically pay between $50 – $100 or around $800 annually for their business vehicle insurance. 

Businesses with vehicles that are on the road for longer periods, such as those in the transport or delivery sector, typically have higher premiums. This is because the increased road time leads to an increased risk of accidents and, subsequently, claims.

Understanding Business Vehicle Cost Factors

When trying to budget for business vehicle insurance, it’s essential to understand the factors that influence the cost. These factors include:

How does the type of business impact business vehicle insurance costs?

The industry your business is in plays a significant role in determining your insurance premiums. For example, a courier service that has its vehicles on the road for extended periods will likely have higher premiums than a business using its vehicles sparingly. High-risk industries, like transport and delivery, often have higher insurance costs due to the greater risk of accidents.

Different policys change the cost of business vehicle insurance

The type of policy you select also affects your insurance cost. There are generally three types of policies:

  • Third-Party Insurance: This is the most basic level of coverage. It covers the cost of any damage you cause to other vehicles or property, but doesn’t cover damage to your own vehicle. As such, it’s usually the cheapest option.

  • Third-Party Fire & Theft Insurance: This policy provides the same coverage as third-party insurance, but also covers your vehicle if it’s stolen or damaged by fire. It’s a bit more expensive than basic third-party insurance but provides more protection.

  • Comprehensive Insurance: This policy offers the most extensive coverage. It includes everything in the other policies and also covers damage to your own vehicle in an accident, even if you’re at fault. Given the broad coverage, it’s usually the most expensive option.

How does your claims history alter your commercial vehicle insurance cost?

Your past claims history plays a significant role in determining your premium. Frequent or costly claims indicate to insurance companies that you may be a higher risk, which could increase your premium. Conversely, a clean claims record can often lead to lower insurance costs.

Business vehicle insurance provides cost effective protection for your business.

Business vehicle insurance isn’t just an expense; it’s an investment in the protection of your business. Here’s how it helps:

Risk Mitigation

Accidents can happen at any time, even with the most cautious drivers. Business vehicle insurance helps mitigate the risk by providing coverage for potential damages and liabilities. This ensures that an unforeseen accident doesn’t derail your operations or impact your bottom line.

Financial Protection

Without insurance, an accident involving your business vehicle could lead to significant out-of-pocket expenses for repairs or replacements. Business vehicle insurance safeguards your business finances by covering these costs, protecting you from unexpected financial strain.

Promotes Business Reputation

Maintaining comprehensive vehicle insurance not only protects your business assets but also serves to boost your business reputation. Clients and customers are more likely to trust and respect businesses that take steps to protect their own and others’ property.

It’s crucial to have business vehicle cover if:

  • Your business owns/operates vehicles
  • Your employees drive for work
  • Your business delivers goods
  • You provide transport service

How can you save on your business vehicle insurance?

Even though business vehicle insurance is a necessary investment, there are ways to make it more affordable. Here are three strategies:

Choose a Higher Excess:

The excess is the amount you pay out of pocket before your insurance kicks in when you make a claim. By choosing a higher deductible, you can lower your insurance premium. However, it’s important to ensure that the deductible is still within a range that your business can afford if an accident occurs.

Maintain a Safe Driving Record

Insurance companies often offer discounts to businesses with safe driving records. By ensuring your employees follow safe driving practices, you can lower the risk of accidents, thereby reducing your insurance costs over time.

Bundle Your Insurance Policies

Many insurance companies offer discounts to customers who hold multiple policies with them. By bundling your business vehicle insurance with other policies such as commercial property or liability insurance, you could save on your overall insurance costs.

Engage our business vehicle insurance brokers at Gerrards

Here at Gerrards, we know the ins and outs of vehicle insurance. Our team of insurance brokers is equipped to guide you through the process of selecting the most suitable and affordable insurance policy. We have an extensive network of insurance providers, and our job is to negotiate on your behalf, compare offers, and secure the best rates for you.

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