Keeping Your Commercial Auto Policy Affordable

Insurance is one of the big expenses of running a business.  Between coverage for your premises and products, liability and worker’s comp, and the other coverage you might need specific to your company, it can add up fast.  Commercial auto can be a big expense for a company with a large fleet of vehicles and drivers.

Fortunately, there are some steps you can take to keep your commercial auto policy affordable.  First, take a look at what insurance companies consider when determining the rates.  Much as with a personal auto policy, a commercial policy is rated based on several factors such as the type of vehicle being insured, the type and amount of use that vehicle gets, and the location where the vehicle is garaged.  In addition to these factors is the driving record of the person who is being insured to drive the vehicle.

Consider what happens when you add a teenage driver to a personal auto policy:  the rates go up because there is now a high risk driver using that car.  When it comes to your commercial auto policy, you can keep rates under control by ensuring that your employees have good driving records-and keep them that way.  Careful hiring practices for drivers in your company can avoid surprises on your insurance bill!

When you select vehicles as company cars, take into account things like the value of the vehicle, safety features, and the likelihood of theft.  Cars with a high safety rating and low theft statistics will save you big on premiums.  Choose vehicles that serve your needs without going overboard; luxury cars are a nice perk, but not a great choice for insurance costs.

Think about where you garage the vehicles.  A safer area with a low crime rate can reduce your rates.  You should also be sure to keep the vehicles secured with features like a fence or a garage if possible.  The more effort you take to ensure the safety of the vehicles in your fleet, the lower your insurance rates will be.  Your insurance company will be taking on a lower risk, and thus charge you less.

If your commercial auto rates are too high, it might be time to shop around for a new policy.  Just as with your personal auto policy, you need to compare rates to find the best deal for your company.  Smart choices combined with smart policy shopping can mean much better rates.

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