If you run a small business that involves transporting vehicles from one location to another—such as a car dealership, garage, or delivery service—you might have come across the term driveaway insurance. But what exactly is it, and why is it important to you? In this blog, we’ll explain driveaway insurance in straightforward terms, highlight its significance, and assist you in determining whether it’s suitable for your business.
What Is Driveaway Insurance?
Driveaway insurance is a unique form of short-term coverage tailored for vehicles that are being transported from one place to another but are not yet registered or fully insured under a conventional policy. For instance, if you purchase a car at an auction and need to drive it home, or if your business delivers vehicles to clients, driveaway insurance ensures you are protected throughout that journey.
Why Is Driveaway Insurance Important?
Accidents can occur at any moment—even when you’re simply moving a vehicle from point A to point B. Without adequate insurance, you could encounter hefty repair costs, legal issues, or even risk losing your business license. Driveaway insurance provides you with peace of mind by covering:
• Damage to the vehicle during transit
• Liability for injuries or property damage to others
• Theft or fire while the vehicle is being transported
Who Needs Driveaway Insurance?
Driveaway insurance isn’t exclusive to car dealers. Here are some individuals and businesses that can take advantage of it:
• Car dealerships transporting new or used vehicles
• Auto repair shops delivering cars to their clients
• Individuals purchasing cars from out of town
• Delivery services moving vehicles
• Anyone needing to relocate a vehicle that isn’t insured yet
If you transport vehicles for business—even just a few times a year—driveaway insurance can help you avoid unexpected expenses.
What Does Driveaway Insurance Cover?
Policies can differ, but most driveaway insurance includes coverage for:
• Collision: Protection if the vehicle gets damaged in an accident during transport
• Comprehensive: Safeguard against theft, fire, or vandalism while in transit
• Third-Party Liability: Covers expenses if you accidentally damage someone else’s property or injure someone in an accident
Some policies may also offer additional features like roadside assistance or coverage for temporary drivers.
How Long Does Coverage Last?
Typically, driveaway insurance is short-term. You can purchase it for as little as one day or extend it for a few weeks, based on your requirements. This makes it both affordable and adaptable—ideal for businesses that only need coverage occasionally.
How Much Does Driveaway Insurance Cost?
The cost is influenced by:
• The vehicle’s value
• The distance it will be driven
• The driver’s experience
• The duration of coverage required
Since it’s short-term and tailored for a specific trip, driveaway insurance is often less expensive than a full annual policy. For small businesses, this means you only pay for what you need, when you need it.
How to Get Driveaway Insurance
Obtaining driveaway insurance is straightforward:
1. Reach out to an insurance company or broker that provides driveaway policies.
2. Share information about the vehicle, driver, and journey.
3. Select your coverage options and pay for the policy.
4. Obtain proof of insurance before you begin transporting the vehicle.
Many insurers can issue a policy within minutes, so there’s no need to wait.
• Compare quotes: Prices and coverage can differ. Explore various options for the best deal.
• Verify the coverage: Ensure the policy addresses all your risks, including liability and theft.
• Review the fine print: Be aware of any exclusions or limitations.
• Inquire about extras: Some policies may offer roadside assistance or coverage for multiple drivers.
Common Questions About Driveaway Insurance
Q: Is driveaway insurance mandatory by law?
A: In many regions, you are required to have at least basic liability insurance to operate a vehicle on public roads. Driveaway insurance assists you in fulfilling this legal obligation.
Q: Can I utilize my standard car insurance instead?
A: Typically not. Standard car insurance may not cover vehicles that aren’t registered in your name or trips that are business-related.
Q: What if I need to transport more than one vehicle?
A: Some insurers provide policies that cover multiple vehicles or trips. Consult your provider for available options.
Final Thoughts
Driveaway insurance is a wise, adaptable solution to safeguard your business when relocating vehicles. It’s simple to obtain, cost-effective, and can prevent significant issues in the future. If you deliver cars, transport vehicles for clients, or simply need to drive a newly-acquired car home, think about driveaway insurance for your peace of mind.
