Auto Insurance

What is an auto insurance?

An auto insurance is a type of insurance designed to protect a company’s vehicles from damage, theft, and liability in connection with driving. This insurance is specifically designed for businesses that use vehicles in their daily operations, ensuring that the company is protected against unforeseen events and financial losses related to accidents and other types of vehicle damage. It is crucial for any business that owns or uses company cars to have comprehensive auto insurance.

What does an auto insurance cover?

Auto insurance combines mandatory motor liability insurance and comprehensive insurance for company vehicles. Motor liability insurance covers the objective liability that can arise from the use of motor vehicles. It is required for registered motor vehicles. Comprehensive insurance covers damage to the vehicle itself and is an “all-risks” insurance, covering all damages except those specifically excluded in the terms.

Certain damages are typically not covered by comprehensive insurance. These include:

• Damage that is not sudden and unforeseen, such as rust and general wear and tear on the vehicle.
• Cosmetic damage that does not affect the vehicle’s functionality or safety.
• Damage that affects only the vehicle’s mechanical and electronic parts, such as engine failures or electronic equipment malfunctions.
• Damage that occurs while the vehicle is under repair or modification.

If additional coverage is required to protect against specific types of damage, it may be necessary to consider supplementary coverage or policies. An insurance advisor can help identify the most appropriate insurance solutions based on the company’s needs and fleet characteristics.

Example of using auto insurance

Master Mason Andersen is on his way home after work when the gearbox suddenly fails. Unfortunately, Andersen loses control of the vehicle and veers too far into the right side of the road, colliding with a parked car. 

The motor liability insurance kicks in and covers the damage to the parked car, as Andersen is objectively liable under traffic law. The comprehensive insurance covers the damage to Andersen’s own car, although with a deductible that must be paid.

It should be noted that the damage to the gearbox is not covered, as it was not caused by an external influence but occurred internally in the mechanical parts.

This example illustrates the importance of auto insurance, as it helps cover damages to both third-party vehicles and the company’s own cars in the event of an accident. Adequate insurance coverage can protect against financial losses and ensure that the business can continue to operate efficiently.

Get independent insurance advice at Söderberg & Partners

It can be challenging to predict when and to what extent damage will occur. That’s why it’s important to have an experienced insurance broker by your side who takes into account the risks and scenarios within business insurance that you may not have considered.

At Söderberg & Partners, our insurance brokers have the qualifications and experience to advise your business – whether you have 2 employees or more than 1,000.

It’s important to us that you, as a company, feel confident that you are properly insured. This allows you to focus on what you do best – running your business.

Based on our professional knowledge, we are often used as a sparring partner, especially when it comes to expanding business areas and evaluating the potential impact on your company. If we notice patterns in damages and types of claims, we assist you with strategies to prevent current or future damages, ensuring that your business is as well-protected as possible. We handle the administrative tasks and equip you to make the right decisions regarding risk management and insurance coverage.