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California - Many companies have their own vehicles for transport, and many companies even offer company owned cars to their senior employees. Several home based businesses also use a car, to run errands or any other business related tasks. These cars need insurance to protect the companies from financial losses in case a mishap occurs. Auto insurance is mandatory by the law in most states. Many states make it compulsory for vehicle owners to at least have liability coverage, to protect the party not at fault from financial losses. There are various types of auto insurance coverage in California. Business auto insurance is required in California to protect the company owned cars, if an employee is involved in an auto accident. In case an employee meets with an accident, the employee does not have to pay for the losses. The insurance company settles the expenses, if the business or the company has obtained business auto insurance.

This form of insurance is very useful as it protects the vehicles owned by the company, as well as any leased vehicles that are being utilized for business purposes. It covers the business owners if any damage is caused to other individuals or their property.

Generally, business owners opt for liability coverage, and collision and comprehensive coverage that covers the drivers and the vehicle, in the event of an accident. Many business owners also opt for Uninsured/Underinsured Motorist coverage, to protect the drivers in case an accident is caused due to reckless driving of another driver, or if a driver with lesser liability coverage injures them. The premium of a business auto insurance policy is based on, various factors such as the offered coverage, business location, and the employee?s driving record.

There are various benefits associated with business auto insurance. It covers transportation expenses if the vehicle is stolen. Business auto insurance also offers coverage, for music systems and cellular phones. It is advisable for new business owners to consult with an experienced insurance agent. The insurance agent suggests an insurance plan that is best suited to the requirements of the business owner.