Purchasing insurance for your VTC (Vehicle for Transport with Driver) business is a crucial step in protecting your vehicle, your passengers, and yourself. However, it is easy to make mistakes that can be costly in the long run. In this article, we review the common mistakes to avoid when purchasing VTC insurance and how to make the best choices to ensure your peace of mind.
1. Not properly assessing your insurance needs
One of the most common mistakes is not properly assessing your specific insurance needs. Each VTC driver has different needs depending on their activity, geographic area, and type of clientele. Here are some questions to ask yourself to assess your needs:
- How many kilometers do you travel on average per year?
- Do you primarily transport individuals or business clients?
- Do you work in a high traffic density urban area?
- An accurate assessment of your needs will help you choose suitable coverage and avoid underinsurance.
2. Choose minimum coverage to save on premiums
Opting for minimum coverage to save on premiums may seem tempting, but it can cost you dearly in the event of a claim. Third-party insurance, for example, only covers damage caused to third parties and leaves your own vehicle unprotected in the event of an at-fault accident. It is often better to choose fully comprehensive insurance , even if it is more expensive, to benefit from comprehensive coverage.
3. Ignoring contract exclusions and limitations
Exclusions and limitations in insurance contracts are often overlooked. However, they determine the situations in which you will not be covered. Read the terms and conditions of your contract carefully to understand:
- Types of damage not covered (for example, damage caused by driving under the influence of alcohol).
- The compensation ceilings for each type of claim.
- The applicable deductibles, i.e. the amounts that will remain your responsibility.
Knowing the exclusions and limitations will help you avoid unpleasant surprises in the event of a claim.
4. Not comparing insurance offers
Another common mistake is not comparing insurance offers available on the market. Premiums and guarantees can vary considerably from one insurer to another. Use online comparison sites or consult an insurance broker to get several quotes and compare offers. Consider the following when comparing:
- The amount of insurance premiums.
- Guarantees included and exclusions.
- Deductibles and compensation ceilings.
- The quality of customer service and the reputation of the insurer.
5. Underestimating the importance of driver protection
Driver protection is an essential benefit that covers the driver's injuries in the event of an accident, whether or not the driver is at fault. Some insurance policies do not automatically include it, or offer limited benefits. Make sure your policy includes adequate driver protection to cover medical expenses, temporary or permanent disability, and loss of income.
6. Failure to properly declare the professional use of the vehicle
It is crucial to correctly declare the professional use of your vehicle to your insurer. Failure to do so may result in your contract being void in the event of a claim. Make sure that your contract clearly specifies that your vehicle is used for a VTC activity, and check that the guarantees correspond to this professional use.
7. Failing to update your contract if it changes
Your VTC business may change over time, and it is important to update your insurance contract accordingly. If you change vehicles, change your area of operation, or increase your annual mileage, inform your insurer. Regularly updating your contract ensures that your coverage remains adapted to your current needs.
8. Neglecting additional insurance
In addition to the primary insurance for your vehicle, there are additional insurance policies that can provide additional protection, such as:
- Legal insurance : Covers legal costs in the event of a dispute with a client or third party.
- Loss of earnings insurance : Compensates for loss of income in the event of prolonged immobilization of your vehicle.
- Contents Insurance : Covers equipment and personal items in your vehicle.
Consider these additional insurances for optimal protection of your business.
Conclusion
Taking out insurance for your VTC business requires a careful assessment of your needs and a thorough understanding of the offers available. Avoid common mistakes by correctly assessing your needs, comparing offers, and choosing suitable guarantees.
At KT VTC&TAXI, we specialize in insurance for VTC drivers and we are here to help you find the best coverage for your vehicle and your business. Do not hesitate to contact us for personalized advice and a tailor-made quote.