Business Vehicle Insurance: Assist Long-Term Business Planning

Having insurance will provide long-term guarantees for financial comfort. There are many forms of insurance that we offer for everyone’s convenience. Especially when you open a vehicle business, this becomes important for you to pay attention to. So, why do we need business vehicle insurance?

Opportunity Business Vehicle This Day

The first time you have the intention to open a business, it means you are ready to do careful long-term planning. That is why every line of business must have a backup plan, such as business vehicle insurance. This plan will make it easier for you if unplanned things happen, related to business.

Many types of businesses have been projected and each of them has a broad market. One business that has high opportunities is the vehicle business. The easiest vehicle business recommendation to find is vehicle rental. It can be cars, motorbikes, and also other types of large vehicles such as buses.

Increasingly, the level of demand for vehicles increases, especially when entering the holiday season. In big cities that are known as tourist destinations, the holiday season will provide great opportunities for vehicle rentals such as cars.

Tourists who arrive tend to prefer to visit using private vehicles, by renting. In addition, the semester change season has an impact on the high demand for vehicle rental in the campus area, for graduation and other purposes. 

Event organizers in many cities also make travel agents and vehicle rentals increasingly needed for the artists. Opportunities for the high vehicle business have an impact on the high risk of damage due to the use of different consumers at any time. That is why every business owner must have business vehicle insurance.

Reason Why You Need Business Vehicle Insurance

All businesses have their risks, including business vehicles. There is a big possibility that businesses related to vehicles and automotive will have a risk of loss. The existence of these risks can have a negative impact on the continuity of your business, so insurance becomes something important.

1. Reducing Losses

The vehicle business such as car rental has a large potential loss. Consumers who use cars have different habits and experiences on the road. They will certainly follow several lengthy procedures before finally renting a vehicle, but different driving experiences sometimes carry high dangers.

If you have business vehicle insurance, you can minimize losses from damage to each vehicle unit. That is why insurance is an important thing that is worth planning from the start.

2. Provides Financial Peace

Insurance offers financial assistance for unexpected events, so by having it you can be relieved. Each insurance company has its type of service product that you can customize.

Otherwise, the insurance company will help cover the cost of handling the damage, and become a bridge between the customer and the repair shop. This also provides comfort and peace of mind for every customer, because you don’t have to incur unexpected costs.

3. Handling Unforeseen Risks

Like every business, you want your vehicle business to run smoothly. However, unexpected events sometimes come out of nowhere. Before that happens, you have to prepare yourself to be able to face all eventualities, and that’s the reason why you need business vehicle insurance.

4. Provides Vehicle Asset Protection

Ownership of vehicle insurance for business is also a form of protection for the assets you have. There are always other possibilities besides losses caused by the lessee, or other motorists who damage the vehicle.

On the other hand, your vehicle is the main asset that you must protect and provide the best possible protection. Therefore, vehicle maintenance after damage is also necessary, so that your business can continue.

5. Lower Premium Than the Risk of Loss

Instead of incurring sudden costs to cover losses and maintenance costs due to adverse events, maybe paying a premium is much better. At least you only need to pay low premium fees, consistently rather than spending outside the budget.

This is because the maintenance costs for repair shops due to vehicle damage are expensive. Especially if it includes spending outside the unwanted budget.

What Type of Insurance is Best for Business Vehicles?

Having business vehicle insurance means you are ready with a more mature business plan. Below are several types of vehicle insurance that you can choose from.

1. Total Loss Only (TLO)

TLO or Total Loss Only, is a policy where customers can make claims for vehicle damage if it reaches 75%. In other words, if the damage to the car or other vehicle has not reached 75%, then the insurance cannot be claimed. Minor damage, such as theft of a car mirror, isn’t so badly damaged that you can’t use Total Loss Only.

Even so, Total Loss Only remains important and is often the choice for motorists whose vehicles are over 5 years old. This is because the age of the car has the potential to experience severe damage. Apart from that, the premium costs are affordable, making many people prefer Total Loss Only.

Adira Insurance offers TLO and All Risk insurance packages that can be customized according to customer needs. They offer packages with premiums starting from 80,000 per month to 189,000 per month.

2. All Risk

All risk is insurance that provides broader insurance coverage. This All Risk insurance can cover all types of damage costs and compensation ranging from small to large damage. So, the premium price you have to pay if you use All Risk is also much more expensive.

All Risk insurance coverage can also be the best business vehicle insurance because it can cover the costs of various types of damage. Accidents, natural disasters, riots, and even compensation for third parties who experience property damage or cause injury due to the accident in question.

Allianz Auto insurance provides vehicle guarantees for repair costs up to 100%, only by paying a premium of 200,000 per month. You can also choose a package that suits your budget, starting from Grand, ECO, and Suka-Suka. 

Manage The Business Carefully with Insurance

The vehicle rental business is the best business idea but also has a high risk. As a rental car, your unit will have higher mobility. Therefore the risk of damage due to daily operations is also large. All you need is careful, good planning. One of them is by starting to insure your vehicle, to minimize the chance of loss from damage, which can happen at any time. So, are you ready to subscribe to business vehicle insurance and limit the damage?