4 Ways to Get the Best ROI from Your Business Car Insurance

Whether you're a small business owner with two employees or running a growing company with more than 20, every rand you invest needs to count. If you rely on business vehicles to keep operations running smoothly, you'll need Car Insurance that delivers the best value. This article will guide you through the top ways to get the best return on investment (ROI) from your Business Car Insurance. Plus, you'll learn how to avoid common mistakes and work with a provider like Auto&General Insurance, who can customise your policy.

How people lose value from Business Car Insurance

Business-owned vehicles in South Africa are 56% more likely to be targeted for vehicle crime 1 than personal vehicles. They also tend to be used more frequently than personal vehicles, increasing the risk of accidental damage. Many business owners are unaware that their policies are often not tailored to the specific needs of their operations.

It’s not just about having cover—it’s about having strategic cover. That means knowing which vehicles only need Third-Party, Fire, and Theft Insurance and which need Comprehensive cover, including Goods-in-Transit Cover. You want to protect business assets and ensure operational continuity, but there are several mistakes you should avoid.

Mistake 1: One-size-fits-all policies

Look out for generic Commercial Vehicle Insurance plans that fail to address the unique risks and demands of your operations. Unlike Personal Car Insurance, which primarily covers individual drivers, Business Vehicle Insurance needs to factor in elements like goods-in-transit, liability for hired drivers, and even weather-related damage. Without these, you might be paying for coverage that doesn’t fully support your business activities.

Mistake 2: Underutilised policy benefits

Many insurance policies include a host of value-added benefits, and you might not be aware of those included with your Commercial Vehicle Insurance. Road Assist, Medical Assist, and towing and storage might be included by default, but you might have also opted for optional cover like replacement vehicle hire or passenger liability. If you’re unaware of or have forgotten about these perks, you might not be maximising the potential return on your insurance investment.

Mistake 3: Improper claims management

Ensure that you or any employees responsible for claims management fully understand the policy and the claims procedures. Without the right documentation or by misunderstanding the claim procedure, delays can occur, leading to frustration and prolonged downtime. This mismanagement affects your day-to-day operations and undermines the financial benefits of your insurance policy.

Mistake 4: Mismatch between policy and business needs

The distinction between personal and Business Vehicle Insurance is crucial. While Personal Car Insurance is designed for routine driving needs, Business Vehicle Insurance is structured to support commercial activities. A delivery service, for instance, has vastly different requirements compared to a consultant who occasionally uses a car for client meetings. Not aligning your coverage with your business’s unique demands can result in paying for features you don’t need, or worse, lacking coverage in critical areas.

Once you identify the areas where value is being lost—whether through non-tailored policies, overlooked benefits, or inefficient claims processing—you can start taking steps to ensure your insurance policy works for you, not against you.

4 Tips to maximise your Business Car Insurance

Maximising your Business Car Insurance depends on you choosing the right provider and then actively managing and tailoring your coverage to fit your needs. In addition to recognising that your needs will change over time, you can consider the following tips to get the most from your policy:

1. Tailor your coverage for a perfect fit

Stop looking only at a standard package, but consider additional features or optional cover. This could be something like Goods-in-Transit Cover (but only for delivery vehicles), liability for both hired drivers and passengers, or protection against specific weather damage.

Your delivery vehicles don't only need to include Goods-in-Transit Cover. Because they are used more frequently, the risk of theft or accidental damage is higher than that of your sales consultant's company car. If you customise as many aspects of your coverage as possible, you can ensure you’re adequately protected without paying for unnecessary extras.

2. Cut premiums without sacrificing cover

Sometimes, combining multiple insurance needs (like Property, Liability, and Vehicle Insurance) with one provider can lead to significant savings. Don't be shy about asking your insurer for a quote on bundling your policies.

If your business has a healthy cash reserve—and a small fleet of vehicles—you might want to consider asking for a higher excess. While this does mean a higher copayment when you do make a claim, the lower premium could benefit you if this doesn't happen frequently. If your drivers are regularly trained on safe driving practices, telematics could lead to better pricing, too.

3. Uncover hidden policy perks

Always look at what value-added benefits are included, and what is available as optional add-ons.

·   Roadside and medical assistance can be a significant benefit and cost saver, particularly when your vehicles travel long distances, and the benefit includes towing and storage.

·   For small businesses, a business support benefit can also be valuable, offering access to professional business advice that isn't limited to insurance.

·   And whether offered as an inclusive or optional benefit, replacement vehicle hire should always be considered. If only because it minimises business interruption.

4. Streamline your claims process for quick resolutions

Understanding and following the proper steps when filing a claim can make all the difference in keeping your business running smoothly after an incident. It starts with being familiar with the claim process: ensure that you document every detail of the incident by capturing photos, gathering witness information, and taking thorough notes about what happened.

Once you have this critical information, contact your provider and the SAPS to report the incident and initiate the claim process. Submitting all the required documents and evidence as soon as possible can prevent unnecessary delays, while regular communication with your insurer will keep you updated and address any questions along the way.

By following these tips and reviewing your coverage to keep pace with your business growth, you’ll be treating your Commercial Vehicle Insurance as an asset for your business. And significantly enhancing your ROI at the same time.

Get Car Insurance quotes

If you're ready to see how you can maximise your Business Car Insurance and enjoy all the benefits that come with a well-tailored policy, contact Auto&General for Car Insurance quotes today. Our team is always ready to provide personalised quotes and answer any questions you may have.