Most businesses that own or operate vehicles will need to maintain commercial auto insurance. It will therefore become an overhead expense for which business owners must budget. If you must factor these costs into your budget, then you will likely want to keep it affordable. There are many ways that you might be able to save on a given commercial auto policy.
Understanding Commercial Auto Insurance Savings
Commercial auto insurance covers vehicles owned or used by businesses. Policyholders must buy any required coverage set by state and federal law. However, they can also increase their coverage to offer more protection. Still, you can often save on your premiums regardless of what level of coverage you buy. To keep coverage affordable, you might be able to:
If you buy commercial auto insurance from the same insurance carrier that provides your other business insurance, then you might qualify for a bundling discount.
- Determine Which Coverage You Need
If you buy the wrong types and amounts of commercial auto insurance, then you might wind up paying more than necessary. When getting your policy, work with your agent to determine the most essential coverage to include on the policy. Only buy extra perks after considering how those enhancements will provide long-term benefits.
A deductible is the cost the insured business agrees to pay for a commercial auto insurance claim. The deductible therefore takes some of the cost risk away from the insurer. The lower the cost risk, the less they might have to charge the policyholder. So, by increasing your deductible, you shift even more risk away from the insurer. This might result in a lower premium.
- Compare Your Payment Options
Depending on how you choose to pay for your commercial auto policy, you might qualify for savings. Some policies will discount your premium if you pay the full cost at the start of the policy term. Others will offer discounts for those who pay through automatic payment channels.
If you hire drivers, you should only employ those who pose the least safety risk to your business. Some companies even install GPS trackers and driver monitoring systems on vehicles. These items can restrict how drivers can behave behind the wheel. This might prevent accidents and even lead to savings over time.
One of the best ways to save on your rates is to try to avoid making claims on the policy. In fact, if you have no claims on your coverage, then you might be able to maintain a discount. Of course, you cannot avoid every type of claim. However, you can take steps to keep your company vehicle as safe as you can. Parking in a garage, locking the doors, arming your security system and not keeping valuables on display in the vehicle can all help prevent claims.
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