Pictured: Stuart Haynes
Company cars are crucial for many Shropshire firms but could
your business continue without them?
Stuart Haynes, of Martin-Kaye LLP Solicitors in Telford, said a
company car was for many an essential business tool.
"Whether you use it just to get to and from work, or to visit
customers and suppliers, if for any reason you, your directors or
your employees were without a car for any time, it could cause real
disruption.
"So that's why comprehensive car insurance is important - the
aim is that if your car is stolen or written off, you'll receive
compensation so you can get back on the road as soon as you
can.
"But given the way cars depreciate heavily from the moment they
leave the garage forecourt - on average a new car loses 48% of its
value in just three years - your insurance payout may not be enough
to purchase a new vehicle.
"And even worse, if you bought your car on hire purchase or a
loan, your payout may not cover the balance you owe, so you'll be
paying for a car you don't have anymore and you'll have to find
more money for a new one."
But Stuart said gap insurance was available to help settle the
balance owing on any finance arrangement - although inevitably it
came at a price and the more cover you want included, the more the
policy would cost.
"It's not a new idea, but with the way new vehicles are
depreciating, gap insurance is becoming increasingly popular.
"Don't just assume though that your car dealer is offering the
best policy - shop around to make sure you get the best value
deal."
Stuart said some comprehensive car insurance policies offered to
replace a car as new if it was written off or stolen in the first
12 months, so it was important to check the small print.
"If your policy offers this, there's no need to double up on
insurance, so only take out a gap policy after the right to a
replacement vehicle has ended. Your company car is an important
asset, and for the sake of your business, you need to ensure you
protect it as best you can."
For more information on Martin-Kaye Solicitors visit their
website here: www.martinkaye.co.uk