Mrs Winterburg owns a small bakehouse in a small town in Texas. The business only owns two small vehicles, a truck and a van, which are always out to buy supplies or deliver products.

One Tuesday morning, Mrs Winterburg's baker had to go to the supermarket to buy yeast. Since there are no company cars around, the baker used his own car.

Unfortunately, a slight accident happened and crashed the baker's car. The baker did not meet serious injury, but the costs of the accidents will almost kill him. The baker's personal car insurance was claimed, even if the car was used for business purposes.

In similar situations, it is advised that businesses secure hired and non-owned car insurance policies. The move will make company staff less apprehensive in using their own cars for business purposes. The coverage will also cover rented cars for business use.

Getting cheap car insurance rates for businesses

Start from the basic by purchasing a business car that will not cost too much to repair. Older models will equate for lower car insurance rates.

Contact your broker/agent about the available policies for your company cars, even if your business is small. Applying for business car insurances can be significantly different from personal car insurance applications, but basic factors still apply.

As always, it is advisable that you shop around and compare car insurance rates from different companies. Personally ask an insurer or ask your local broker/agent. This way, you can pick out the best deal for you business car insurance.

Increase deductibles. For business coverage, most insurance companies will let you shoulder up to $1,000 excess charge for collision and comprehensive car insurance coverage. Or, drop collision coverage if potential repairs will cost more than how much the company cars are worth.

Business car insurance coverage

Commercial car insurance policies usually cover several factors. However, be informed that the more you add coverage to your package, the higher your car insurance rate will get.

The biggest factor in commercial or company car insurance policies is liability. This can cover either bodily injury (BIL) or property damage. BIL will provide protection from possible complaints over bodily injuries, death or lost wages by a person involved in an accident caused by your company vehicle.

Property damages, on the other hand, will cover damage costs to properties and structures ruined or damaged by your company car in case of accidents.

Medical coverage is also offered by car insurance companies. This will cover the cost of medication or treatments a person damaged by your business car will need in case of accidents.

Several US states require businesses to take comprehensive and collision insurance to protect the businesses' assets. Comprehensive insurances will cover costs if the car is vandalized, damaged by natural calamities or broken into. Collision insurance will cover repair costs in case of accidents.

Other coverage include rental and towing reimbursement. This will cover costs if the company car is towed to a repair shop. The rental will cover expenses if your car gets dysfunctional and your business needs to rent a car to continue operations.

Uninsured/Underinsured motorists insurance will cover expenses in case of accidents if the driver of the car involved in your company car's accident does not own, or does not own sufficient, a car insurance policy to cover accident costs.