Entrepreneurship almost always requires mobility. Only in this way is it possible to have sufficient contact with customers, to visit the sites of the projects and to carry out researches. In our information society, sufficient mobility, mentally as well as geographically, is one of the most important success criteria. With an own car, the entrepreneur in the regional area is not dependent on delayed and inflexible, public transportation. In addition, many costs, not least insurance, can be deducted as business expenses. Nobody drives a car as cheaply as an entrepreneur. This is even more true if the insurance has been chosen wisely.
Which insurance policies should be taken out for the company car?
Contents
1 Which insurances should be taken out for the company truck?
2 How does a car insurance comparison work?
3 What are the special features of truck insurance?
4 What does the GAP coverage mean?
5 What about the tax deductibility of car insurance policies?
Motor vehicle liability insurance is obligatory, just like for a private car. Voluntarily, various comprehensive insurances, a legal protection insurance and a passenger accident insurance can be concluded. For an entrepreneur all insurances make sense. The comprehensive insurances protect against expensive repairs after an accident. The legal protection steps in if a court hearing is pending and sometimes customers ride as passengers in their own company car. In the event of damage to persons or property, you save a lot of money with these insurances.
How does a car insurance comparison work?
For a few company cars there are hardly any big differences in the comparison to the comparison in the private sector. The policyholder must be aware of a whole range of criteria before jumping at the offers:
– Which vehicle or. Model is insured? – Which persons with which experience drive the vehicles? – Should only one liability be taken out? – Up to what amount should the liability insurance protect? – Should fully comprehensive or partially comprehensive insurance be added as additional accident insurance? – How high should the deductible be with the comprehensive insurances? – Should there be free damage? – Should the insurance cover gross negligence? What about the protection of the passengers. The legal protection? – At what intervals we pay? Is the vehicle parked in a garage. Thus protected from weather-related damage? – Which theft protection is available? – How many people ride in a vehicle?
The sheer number of questions proves that choosing the right car insurance is a complex matter. For this reason, insurance agents also use auto insurance to get a foot in the door with potential clients. They still take out car insurance with relatively low commission and detailed advice. Even as an entrepreneur you can use this service. The alternative is ein comparison via one of the many calculators on the net. So you can do without an agent for a few vehicles.
What are the special features of truck insurance?
Concerning the liability insurance there are actually no differences to a passenger car. A license plate is only issued to insured vehicles? In terms of costs, however, the areas of use of the vehicle must be taken into account. In which areas does the truck. What cargo he has loaded or. Which companies he drives to? The annual cost of insurance is largely determined by these issues.
What does GAP coverage mean??
Entrepreneurs often do not buy the company-owned vehicles, as leasing offers tax advantages. A leasing contract is always linked to a fully comprehensive insurance policy. However, in the case of a total loss, the current current value of the car paid by the insurance company may be less than the value claimed by the leasing company according to its statement of account. Since the leasing company must be reimbursed for its property, there is a difference that can be expensive for the entrepreneur. In case of a GAP coverage the insurer also pays this difference.
What about the tax deductibility of car insurance??
For both the company's vehicle and the employee's vehicle, it is a question of the proportion of company use. If less than 50 percent of the vehicle is used for business purposes, a mileage allowance can be applied, which the car insurance company indirectly takes into account but does not directly claim for tax purposes. But even with this low usage, the entrepreneur can decide to claim the entire costs on a pro rata basis.
Provided that the vehicle is used for a share of more than 50 percent for the operation, gehören always the entire expenditure accordingly depreciated. This also includes the insurance. The private part of the use must be deducted of course.