Do I Need Auto Insurance for my Delivery Business?
Reader’s Question:
I have a small business delivering home-cooked meals in Kennewick Washington WA which is quite profitable. Lately through word of mouth I have started to deliver outside Kennewick Washington WA. I even got an order out-of-state. My husband tells me I should charge differently for those farther from my home. Is he correct? He says it’s got to do with auto insurance. How is it related?
Tina
Kennewick, WA
Well this time, your husband happens to be correct, Tina. The most obvious reason to have a change in price would be the time and fuel used in delivering these meals. The other, less obvious reason would be the increased cost of your auto insurance.
When you travel more, your auto insurance will more likely charge you with higher premiums. This is based on the premise that the more you travel, the more likely you will be involved in vehicular accidents. Some may argue that this is a fallacy but it is a general precaution being taken by most insurance companies, even in Kennewick Washington WA. Your auto insurance company will also look at the places you go to. Some places rate higher than others in terms of risk. If you regularly go to high-risk places, then again your auto insurance premiums will be higher. So it is only fair that you charge higher for those areas that are not so nearby. Or perhaps, what you should do is follow what most businesses do, and that is to have a fixed delivery charge for certain distances. You can compare with other food delivery businesses in Kennewick Washington WA to make your rates competitive.
The other option you can look at is change the classification of your vehicle use from personal to business. You see, if you have only declared your car for personal use but is using it for business, you risk nullifying your claim when an accident happens. Why don’t you go ahead and type in your zip code on the space that you see? It is very convenient to get free quotes right away. Just declare that you are using your car for business to get appropriate quotes.
I hope I’ll have the chance to try one of your home-cooked meals, Tina.