Why Does Your Business Need Comprehensive Car Insurance Coverage?

This post may contain affiliate links and I may receive a small commission if you make a purchase using these links – at no extra cost for you. Please read my disclaimer here.

Comprehensive car insurance provides coverage for vehicle damages caused by non-collision accidents. It is definitely more expensive than the basic liability or collision insurance, but it also provides broader coverage. 

This type of insurance is preferred by many businesses, especially those who deal with more vehicles, or have expensive transport. So, does your business also need comprehensive car insurance?

With the best auto insurance rates in Illinois at Insurance Navy, your business will be good to go with any type of vehicle damages, recovery, and relevant employee compensations. 

This article discusses the advantages of comprehensive car insurance and why your business may also be needing it.

Why does your business need comprehensive car insurance coverage?

Some states require businesses to have basic liability-cover insurance. Often, it is not enough to fully protect your business in case of accidents. Comprehensive car insurance provides additional protection that helps mitigate legal or financial losses.

Car Insurance Coverage

So, how does that help?

1. Protection of assets

When you own a business, your vehicles are your significant assets, facilitating the business in the long run. Comprehensive car insurance allows you to cover the costs of repair of these vehicles or replace them completely if need be.

This is especially required if you have a transport business where you mostly rely on vehicles.

2. Meets legal requirements

Many states consider comprehensive car insurance as a legal requirement for businesses that use vehicles. You are liable to fines and legal penalties if you lack comprehensive car insurance.

Moreover, if your company car gets stolen, your business loses one of its prime assets. To meet legal requirements, law enforcement officials may ask for proof of insurance. Comprehensive car insurance policies provide you with a certificate or a card that you can use as legal documentation. 

3. Covers third-party liability

In an unfortunate event, if the company vehicle meets an accident, it can also cause third-party damage. Comprehensive car insurance coverage can cover all medical and legal expenses in addition to the damaged vehicle.

There are, however, a few factors that can affect third-party liability coverage in comprehensive car insurance policies. These are

  • The type of vehicle- The type of vehicle you own determines the third-party coverage limit for your comprehensive car insurance. The amount is directly proportional to the size of the car.
  • Policy limit- From a thousand dollars to some millions of dollars, the third-party coverage limit under a comprehensive car insurance plan is set by the insurance company. Choose up to the limit that you can pay for.
  • Driving record- Remember to recruit drivers with a clean driving record. Their driving record can also affect your third-party liability coverage limit. You will end up paying a higher premium if your drivers have a record of accidents or traffic violations.
  • Age and experience of drivers- Having young drivers with lesser experience could put you at a higher risk of third-party liability coverage limit. Therefore, when you choose drivers for your commercial vehicle, make sure to keep a copy of their driving experience.
  • Location- Where you drive or park your car determines your third-party liability coverage. For example, if you regularly drive through some accident-prone zone, or have to park your vehicle in a theft-prone area, then you have to pay a higher price.
  • Insurance history- make sure to have a clean insurance history. Had there been claims previously or policy cancellations, your third-party liability premium would shoot up a few dollars. It is recommended that you refrain from repeated claims and, at the same time, try to stick to your policy. Insurance companies also look for businesses that have lesser risk potential.

4. Provides additional coverage

Comprehensive car insurance coverage is one notch above basic liability coverage insurance. Additional coverage includes non-collision incidents, natural disasters, vandalism, theft, engine and gearbox protection, invoice, and consumable cover.

car-accident-Provides additional coverage

If you do not have comprehensive car insurance coverage for your business, you must pay for these damages/losses from your pocket. Some examples of additional coverages are mentioned below.

  • Protection against fire and explosion- Comprehensive car insurance ensures that if there’s a fire or explosion in and around your car, it will be covered in the policy package. In most cases, insurance companies do not take liability for the damage caused to your car by unforeseen hazards like fire and explosion. If you have comprehensive car insurance, you can recover the damage without paying extra bucks from your pocket.
  • Coverage for windshield damage- In case of storms, or vandalism, there are chances that the windshield of your car gets damaged or shattered. Comprehensive car insurance covers this loss. Commercial cars usually travel more miles than personal cars. Thus a damaged windshield could lead to potential accidents. If you have commercial car insurance, these damages are covered within the premium.
  • Coverage for valuable car accessories- Several commercial cars have custom wheels and have valuable accessories installed, like a stereo or an advanced GPS system. In case these are lost or damaged due to theft or natural disasters, comprehensive car insurance provides protection for these losses. The best part about these insurance policies is the additional coverages it provides within their package.
  • Protection from falling objects- A falling tree branch can cause quite a lot of damage to your commercial car. Repairing the dents caused can cost you a bomb. Thus, if you have comprehensive commercial car insurance, you can be at peace. The policy will take care if there’s any need for repair or replacement of your car parts. You will not get these facilities for a standard insurance policy.
  • Coverage against animal collisions- Commercial cars travel distances. In case it hits an animal while on the go, comprehensive car insurance will make up for any repair if need be.

5. Helps reduce financial risks

In some of the most unfortunate cases, covering up for the damage/loss/theft of your company vehicle in Illinois can even lead to bankruptcy - it is that expensive!

By getting comprehensive car insurance for your company vehicles, you can transfer these financial risks to your insurance provider. You just need to pay a certain sum of annual premiums, and they take care of the rest.

6. Offers employee protection 

This is particularly applicable to the company vehicle drivers. Comprehensive car insurance not only covers the vehicles as the company's assets but also the employees. 

If any company employee suffers damage due to vehicle accident, this comprehensive car insurance takes all expenses into account. The company will not have to worry about the employee reimbursement. 

Additionally, if a company vehicle is totaled, the insurance provider can use a total loss calculator to quickly and accurately determine the payout amount based on the vehicle's pre-loss value.

7. Complete value for money

If you compare, you will find that a business's premium for comprehensive car insurance is always higher than any third-party car insurance. But, in return, it offers much greater value in the form of additional coverage, third party liability, and employee protection. 

Complete value for money car insurance

Opting for comprehensive car insurance is beneficial in the long run as it reduces the overall financial risk for the company, providing optimum value for money. 

Final thoughts

If you own a business in and around Illinois, I recommend getting comprehensive car insurance at your earliest convenience. The place is frequently hit by natural calamities, which can take a heavy toll on your vehicles. 

An overall car insurance policy is the best way to protect your business, its employees, and its vehicles. In a way, you are financially secure from any potential disaster in your business. Choose a scheme wisely before you invest.


Why do I need comprehensive car insurance for my business?

You need comprehensive car insurance for your business to keep all its assets under financial protection. This includes your vehicles, your employees, and other tangible and intangible assets.

What aspects does overall car insurance cover?

Overall, car insurance covers any damage to the car, its repair, replacement, and even any medical and legal expenses if it runs into someone accidentally.

How much does comprehensive car insurance cost in Illinois?

It costs $1806 a year for comprehensive car insurance in Illinois.

Can I opt for cheap car insurance?

Yes, you can opt for cheap car insurance with limited benefits.

About the author 

Peter Keszegh

Most people write this part in the third person but I won't. You're at the right place if you want to start or grow your online business. When I'm not busy scaling up my own or other people' businesses, you'll find me trying out new things and discovering new places. Connect with me on Facebook, just let me know how I can help.

{"email":"Email address invalid","url":"Website address invalid","required":"Required field missing"}