Commercial auto insurance is a type of insurance policy that will cover any vehicles which are owned and operated by a business. This is an important policy to have when operating a business involving vehicles because it will cover accidents and any general damage to your business’ vehicles that may not be covered under your personal auto policy.
Your personal auto policy may cover some damages to your commercial vehicle, but these policies are not intended for businesses, and therefore are written differently than a commercial auto insurance policy. A commercial auto insurance policy will cover any harm done to the driver of your vehicle in accident, the damage done to the vehicle itself, as well as any damage the vehicle does to others vehicles or other property of any kind.
Like personal auto insurance, commercial auto insurance can be quite expensive. It’s another financial concern for your business when considering investing in vehicles. The benefits greatly outweigh the costs though, especially when you can cut those costs down to a minimum. Start by following this guide to saving money on commercial auto insurance.
Choose the Right Company
While it can be convenient to simply open up a commercial auto insurance policy with the same company which covers your personal automobile, it may not always be the right choice financially. Do thorough research to identify which company offers the least expensive policy that will also give you the coverage you need. There are plenty of services online that compile and compare auto insurance costs, and these should be utilized in your search.
Hire Safe Drivers
Determining the risk on a personal auto policy is a pretty simple task for auto insurance companies. They just have to review your driving history. With commercial auto insurance, it’s a little more complicated. Insurance companies will be interested in the driving records of all of the employees who will be driving for your business. You’ll save a lot of money on your policy if you employ drivers with clean accident and violation records. It will also reduce the risk of an accident in the future.
Opt for a Higher Deductible
When signing up for your new commercial auto insurance policy, your monthly premium will be closely tied to the amount you decide to set for your deductible. An easy way to save money is to opt for a higher deductible, a payment you will only have to make if an accident actually occurs. This will reduce your premium and save you money in the long run.
Prioritize Safety in Your Vehicles
Another way to motivate your insurance company to offer you low premiums on your commercial auto insurance is to have a fleet of safe vehicles. Instead of prioritizing cost, look, or functionality when deciding what vehicles to buy, think first about the safety of these vehicles. If a car is old and falling apart, or new but poorly rated safety wise, any insurance company is going to charge you higher monthly premiums to insure it.