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Commercial Car Insurance

Commercial Car Insurance

In this day and age it is impossible to start a business if your investments are not properly insured. In commerce insurance is one factor you cannot do without.

The nature of commerce also means that insurance companies require a more thorough process for their clients before they can apply for their services. That is why it is important when applying for a commercial insurance policy to always bring a copy of your Chamber of Commerce registration, and a valid identification of the persons mentioned under the registry.

When dealing with applying for a commercial car insurance it important to note these factors to your broker:

• Indicate if a trailer will be attached to the motor vehicle.

• Indicate if cargo will be transported with the motor vehicle.

• Indicate if the service of transporting people for pay will be taking place.

• Indicate the number of people that can be transported in the car and/or bus.

• You have to be in possession of the permit required by DOPV (Directie Openbaar Personen Vervoer).

Other than the compulsory car insurance you also have the option of taking out the Third Party Liability Plus coverage for your commercial cars as long as your cars aren’t older than eight (8) years old. This insurance covers:

• Coverage according to the Compulsory Law (L.A.M.)

• Fire

• Theft or Joyriding

• Explosion

Insurance companies can add one or more types of coverage, but basically these are what all insurance companies cover.

You also have the possibility of taking out the comprehensive coverage. Which not only covers the coverage’s stipulated by the Compulsory Law (L.A.M.), but will compensate damages whether you are the guilty party or not. It is important to note that unlike the name suggests it won’t cover all types of damages. For commercial insurance there is only one coverage:

1. You have the coverage known as All Risk. When following an accident should your commercial car be declared a ‘total loss’ the insurance company will apply devaluation on your car based on the depreciation table. Which on Aruba is as follows:

a. 1 year > 25%

b. 2 years > 20%

c. 3 years > 15%

d. 4 years or older > 10%

All commercial car insurance policies accumulate yearly a 10% discount if no accident has occurred during this period. Certain insurance companies will allow this discount to accrue to 60% on the coverage of your car. With an all risk this discount could go up to a 70% discount. Every insurance company competes with each other on these terms, which gives the client a lot of options to choose from.

Please note, every insurance company has their own policy, which may vary. And therefore the information we provide is liable to change depending on your current insurance policy.

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