Old Jaguar E-type sports car: front view (back))
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Question by : Business project assistance? Insurance question?
I have a project for my economics class, we are creating a business and have to look into all the costs it would be to actually open the business. I have found all the costs except the cost of how much it would be to insure my employees cars, We are a delivery service, they’re using their own cars yet I still have to pay some sort of car insurance, my teacher won’t accept the project without it and I have searched around and can’t seem to find it. I need a rough estimate. We would have 2 delivery cars that aren’t company owned used for delivery. Thank you so much!
Best answer:
Answer by StephenWeinstein
Car insurance prices are based mostly on where the person lives. You can pick any number you want between $ 50 per month and $ 1000 per month. Every number in that range is roughly the price, somewhere.
What do you think? Answer below!
You don’t actually insure your employees cars. Most delivery services like that, buy *hired and nonowned auto coverage* which covers the BUSINESS, if the business gets sued, because the employee was driving for business, but it doesn’t actually protect the employee, or the employee’s car, OR pay out the damages in the accident – it ONLY defends the EMPLOYER. Most businesses like this, like pizza delivery or courier businesses, let the employee be insured incorrectly, and if they get in an accident, too bad.
Hired and Nonowned auto liability, the cost depends on the number of employees, and the cost of hire, but for the most part, it costs around $ 300 or less, per year, for $ 1,000,000 of coverage.
Contrasting that, if you were to carry “full coverage” for an employee’s vehicle, used for delivery, depending on the TYPE of delivery and the age and driving record of the employee, you could EASILY be looking at $ 10,000 per car, for coverage. Maybe even more.