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When Do You Need Business Car Insurance In Manitoba?

Akari Digital — Mon, 08 Aug 2022 21:41:13 +0000

Auto Insurance, Business Insurance

When Do You Need Business Car Insurance In Manitoba?

August 8, 2022

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You may be considering getting a vehicle for your business or already have a vehicle you’re now wanting to use for business purposes and are wondering, “when do you need business car insurance in Manitoba?”

If you’re using your vehicle for work purposes outside of just getting to and from work, you probably need additional insurance on top of your personal vehicle policy. By not having the proper insurance, you run the risk of having a future claim denied.

In this post, we break down all the reasons you may want to up your car insurance policy. Make sure you have the right coverage so you can rest easy knowing you, your car, and your business are properly protected!

Want to skip the reading and get a quote? Contact us today!

Take The Direct Highway To The Info You Want Most

Personal Vs Business Car Insurance
At What Point Do You Need Business Car Insurance?
What Types Of Business Car Insurance Can You Buy?
How Do You Get Business Car Insurance?
Business Car Insurance FAQs
Make Sure You Have The Coverage You Need!

Personal Vs Business Car Insurance

Business and personal auto insurance are similar in the way they provide protection. They both would give you and your vehicle financial shielding if anything were to go wrong.

However, it’s important to note that personal car insurance will not cover you if your vehicle is used for business purposes, and business car insurance– or commercial vehicle insurance– will not cover you if it is used for personal use. In other words, you must get additional vehicle coverage if you need to use your vehicle for business purposes.

Suppose you got into an accident and your insurance company discovered that your vehicle was being used for business purposes (even if not at the time of the accident), and you only had a personal auto insurance policy. In that case, there is a likely chance that the claim would not be processed.

By not having the proper insurance you’re putting yourself, your finances, and your business at risk. So, what might seem like a way to save some cash, may end up costing you thousands! Ouch!

At What Point Do You Need Business Car Insurance?

If your car is helping/is vital for you to gain income (carrier business, uber driver, mobile vet) you need additional coverage. A good rule of thumb is if you’re using your car for business beyond driving to and from work, you probably need business car insurance. This is true regardless of whether you are a business owner or a sole proprietor. It’s needed for company-specific vehicles as well as personal vehicles that are also being used for your business.

If you’re unsure if you need business car insurance, the best thing you can do is talk to an Insurance Consultant! They will be able to help you make sure you have the right coverage for what you need.

What Types Of Business Car Insurance Can You Buy?

Much like personal car insurance, there are many different options when it comes to picking a policy that is right for you. One of the main things that should be considered when choosing a business car insurance policy is what type of business the vehicle is being used for. We’ve outlined a few typical business vehicle types below:

A common carrier passenger vehicle (local) is used by a courier or common carrier within a city or municipality. This vehicle is used for any delivery purposes in connection with a business, trade or occupation for more than four days in one month or more than 1,609 km during an annual registration period. These vehicles require a business car insurance policy.

A Passenger Vehicle for Hire is a vehicle used for ride-sharing, such as Uber/Lyft. For these types of business vehicles, various time bands are available depending on your needs and the approximate times and days you plan on running your shared-ride service.

Trucks that are hauling business equipment with a gross vehicle weight of over 4500 kgs may require a Special Risk Extension policy to cover all perils and third-party liability. $1M, $2M. $5M and even $10M are available.

These trucks are regulated under Transportation services and will require a valid Safety Fitness Certificate issued by the Transportation Services. Depending on the weight of trucks and the policies needed, getting this could take anywhere from one day to one week.

There are different coverage options, and finding the right policy depends on the nature of the business type and use of the vehicle. Tools and equipment owned by the company are usually covered under a Commercial General Liability insurance policy, with liability coverage options of $1, $2 and $5 million available.

How Do You Get Business Car Insurance?

Whether you’re looking for personal auto insurance or business car insurance, the process is the same (come in and see one of our Insurance Consultants for assistance!). If additional coverage is needed, we’ll also put you in touch with one of our Business Insurance Advisors so they can ensure you have the additional coverage you need to protect you and your business. Remember, if you’re doing any business outside of Manitoba, special licenses/permits are required.

On a Commercial General Liability policy, there are options to purchase coverage for any stock and Equipment in transit. Installation floaters are also available. Reach out to one of our Business Insurance Advisors for more information!

Make Sure You’re Prepared!

The best way to make the insurance process as smooth as possible is to have your documents ready to go– don’t worry, though, if you’re missing one or need help finding it– we are here to help!

Documents required to get the coverage you need may consist of:

A Bill of Sale
A Certificate of Inspection (safety)– required for vehicles over the Gross Vehicle Weight of 4500 kgs
A Transfer of Ownership document
A NVIS form if the vehicle is brand new

It’s important every area of your business is protected, not just your car. That’s why we’re here to make sure you’re covered from every angle, so you are prepared if anything were to go wrong. Check out our post on Getting Insurance for your Small Business to learn more about what other coverage you may need so you can focus on being a pro at your business and we can take care of the not-so-fun stuff.

Business Car Insurance FAQs

You got a business to run, and we’ve got answers to help you run (or drive) it safely!

Can You Write Off Car Insurance For Business?

If you’re a small business owner who uses their vehicle for their business needs, you can usually consider the additional insurance a business expense, meaning it would be tax-deductible. We love saving $$!

How Much Does Business Car Insurance Cost?

As you can probably guess, driving a vehicle for business purposes is riskier than just driving it for personal use, meaning there are a few extra costs involved.

It’s important to note that numerous factors go into getting you a quote for business car insurance. Things like the type of vehicle, its age, the type of business it’s being used for, the number of drivers, and who the drivers are (age, vehicle history) can all impact how much this will run you.

If you’re interested in starting the process to figure out how much this could cost, click here to get a quote from us today.

Make Sure You've Got The Coverage You Need!

It’s important you have the right car insurance, especially when not having it runs you the risk of paying out of pocket if an accident were to occur.

The coverage you need will change depending on your car, business, and vehicle use. That’s why we recommend contacting one of our Insurance Consultants today to get a quote that is best suited for your needs.

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Is Vehicle Replacement Insurance Worth It In Manitoba?

Honest Agency — Mon, 27 Sep 2021 05:00:00 +0000

Auto Insurance

Is Vehicle Replacement Insurance Worth It In Manitoba?

September 27, 2021

Updated: November 8, 2022

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If you’ve recently gotten a new vehicle you know just how exhilarating it can be– however it can also be a bit nerve-racking. Getting a new vehicle is a huge financial cost and one that we want to protect. This makes many new vehicle owners wonder if vehicle replacement insurance is worth it.

Vehicle Replacement Insurance exists to save you from the potentially significant financial loss that would occur if your automobile was written off. It allows you to rest easy knowing that if your vehicle were totaled, your insurance company would pay you enough money to purchase a new vehicle of the same make and model. Instead of you getting a fraction of what your vehicle is worth, leaving you carless while still being stuck paying loans to the bank. Yikes!

This is why we always recommend covering and protecting your assets. The truth is, an accident can happen at any time. The last thing you need to be stressed about when you’re in an accident is vehicle payments.

In this blog, we dive into all the nitty gritty details of vehicle replacement insurance (also referred to as car replacement insurance) so that you can feel confident in deciding if this replacement insurance is right for you.

Ready to jump right into getting a quote? Let’s do it– get a quote today!

What Is Vehicle Replacement Insurance?

Vehicle Replacement Insurance is a type of supplemental insurance for new and used vehicles. With this coverage in place, if your vehicle is totaled, you can rest easy knowing your insurance company will pay you enough money to get another vehicle of the same make and model. Instead of cutting you a cheque for the value of your actual vehicle, which, at that point, will have depreciated significantly!

At Winnipeg Insurance Brokers Ltd., we offer two types of vehicle replacement insurance: New Car Protection from Manitoba Public Insurance, which covers your vehicle for up to two years for depreciation, and Vehicle Replacement Insurance from Optiom Inc. The focus of this article will be on the products provided by Optiom Inc.

Optiom’s insurance protects the investment you’ve put into your vehicle by paying you the difference between the market value of your vehicle at the time of a loss and the Manufacturer Suggested Retail Price (MSRP) of a brand new, equivalent replacement vehicle. And, if you have to pay a deductible on your claim after your vehicle is written off, it may also reimburse you for that! (Up to a certain dollar amount.)

Do I Need Vehicle Replacement Insurance If I Bought A Brand New Vehicle?

Vehicle replacement insurance is not required, but it is recommended, especially if you bought a new vehicle.

Did you know that within a year of having a vehicle, its value will likely depreciate by up to 20%! Factor in a fender bender, damage, or vandalism, and all of a sudden, the car you bought at a brand-new price point is worth a lot less. Even though vehicle replacement insurance is never required, it is the only way to protect the value of your new vehicle.

Is Vehicle Replacement Insurance Standard or Mandatory?

No, Vehicle Replacement Insurance is not standard or mandatory. It’s simply a top up option you can choose to add your primary insurance policy. (Your primary insurance policy is the one you secure, through Manitoba Public Insurance, which makes it possible for you to repair your vehicle and make it drivable again following an accident.)

How Does Vehicle Replacement Insurance Work?

Vehicle Replacement Insurance works in two ways:

It removes any financial burden on you if your insurance settlement pays you less than the amount you owe to your financial institution on your car loan.
It fills the gap between the MSRP or black book value of your vehicle and the actual cash value of your original vehicle at the time when it’s written off.

What’s The Difference Between Collision Insurance, Gap Insurance, And Vehicle Replacement Insurance?

Collision Insurance

Collision Insurance covers the cost of repairing your damaged or broken vehicle, to make it drivable again after an accident. You would use this insurance when your vehicle is damaged, but not totaled.

Gap Insurance

Gap Insurance covers the gap between your primary insurer’s pay out and the loan amount you owe. For example, if you paid $20,000 for your vehicle, but it was damaged beyond repair in an accident two years later, your insurer might only give you $10,000 due to depreciation. If you still had $16,000 left to pay on your vehicle loan, without Gap Insurance, you would be out that extra $6,000.

Vehicle Replacement Insurance

Vehicle Replacement Insurance covers the financial gap a totaled vehicle leaves behind in the way that Gap Insurance does. But, it also makes sure that, if your vehicle is beyond repair and written off, you receive enough money to buy a brand new version of that same vehicle.

How Much Does Vehicle Replacement Insurance Cost?

Vehicle Replacement Insurance costs approximately 1% of your purchase value. So, if you paid $20,000 for your vehicle, you could expect this insurance to cost you less than $25/month. This is a very fair price when you consider the Vehicle Replacement Insurance protects your total investment on your vehicle!

Who Can Get Vehicle Replacement Insurance?

Every Manitoban who owns a new or used vehicle up to 10 years old qualifies for Vehicle Replacement Insurance! So as long as you have full collision and comprehensive primary auto insurance in place, you can secure this coverage for your new vehicle—regardless of whether you’re new to Canada, new to driving, or you have a poor driving abstract.

Does It Matter If My Vehicle Is New Or Older?

No, it doesn’t matter if you have a new or an older vehicle, as long it is less than 10 years old. But, the age of your vehicle does change your protection a bit.

New Vehicles: Protection is valid for up to 7 years.
Used Vehicles: Protection is valid up to 5 years, depending on the model year.

How Can I Find Out If My Vehicle Qualifies?

Typically, if your vehicle is less than 10 years old, you will qualify! To make sure or get started, speak with our Insurance Consultants! They will be more than happy to review everything with you.

So, Is Vehicle Replacement Insurance Worth It?

Yes, 100%! With Vehicle Replacement Insurance, you’re paying just a little extra each month in order to ensure that, if your vehicle is stolen or damaged beyond repair, you won’t lose money paying off your remaining vehicle loan or buying a whole new vehicle. Even if the value of your original vehicle has depreciated.

How To Secure Your Own Vehicle Replacement Insurance

Vehicle replacement insurance is always a good idea. It helps you protect one of the most expensive (and useful!) assets you’ll purchase. Accidents can happen at any time and to anyone!

You’ve worked hard to afford your vehicle. It’s important you protect your investment so that, in the event of an accident, you can replace the cost of the vehicle and not need additional out-of-pocket funds.

If you agree that Vehicle Replacement Insurance sounds like a fantastic idea, or you’re just interested in learning more, get in touch with us! We’ll give you a commitment-free quote and, if you so choose, help you secure your coverage.

What are you waiting for?

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