Owning a business involves a significant investment of time and savings. From the physical building where you conduct your everyday activities, to the vehicles you use to get it done. All it takes is one incident to bring all your hard work to an abrupt end. That is why it is essential to insure that investment.

 

Modern businesses need vehicles to facilitate their operations. From delivery vans to cars driven by employees – commercial auto insurance is imperative to help protect against unforeseen incidents. However, most businesses are unaware of how to save money on commercial insurance. Insurance comes in all shapes and sizes, and insurance providers set their rates after considering various factors.

 

Insurance does not have to break the bank; businesses can save money on their commercial auto insurance. Let’s examine a few pointers to help you cut your premium.

 

Bundle Your Policies Together

 

Just as a homeowner can bundle their home and auto insurances, business owners can bundle their various insurances together, and save money. Businesses are insured through policies such as a property insurance policy, a professional liability policy, a commercial auto insurance policy and other business-specific coverages.

 

Many insurance providers offer special savings for policy bundling – called multiple policy discounts. When you purchase more than one insurance policy from a single provider, they can integrate the premium payments, allowing you to obtain coverage at a cheaper cost. Bundling policies also can help expose gaps in your coverage limits and assists your agent with knowing what coverages are needed to cover such gaps.

 

Time is money, and that is one adage businesses must live by. Bundling all your business policies saves you from the hassle of maintaining multiple insurance policies from various insurance providers. It can save precious time when filing a claim, paying deductibles, and when paying premiums.

 

Pay Attention to the Drivers

 

Insurance providers decide the insurance premium after considering a variety of different factors – including a driver’s driving record.

 

Drivers with poor records present a more significant risk for the insurance provider as they are more prone to get into accidents and cause injuries that lead to coverage payouts. Business owners are advised to thoroughly vet their employees, especially their driving histories before attempting to add them to their commercial auto insurance policy.

 

Ensuring that only people with an excellent driving record are permitted to drive company vehicles, translates in a drop in the premium price for commercial auto insurance.

 

Take a Look at Your Vehicles

 

A business’ auto insurance rate will primarily rely on the fleet of vehicles the business manages. Multiple factors are considered when an insurance provider documents a business’ vehicles such as the type of vehicle, the size of the vehicle, and its safety features.

 

For instance, if your commercial vehicles are older and have to rely on out-of-date safety features – it represents a higher risk for the insurance provider, and they will charge a higher premium. A newer vehicle with modern safety features will cost less to insure.

 

Insurance providers are looking for evidence of routine inspections. These should be carried out by reputable vendors. Routine maintenance, periodic revaluation, and inspection logs are all good signs that a business owner cares for the vehicles in his fleet.

 

In addition to that, insurance providers may also require detailed information about the vehicles to assess whether it complies with local law and state-required standards. Vehicle features such as airbags, antilock brakes, and anti-theft devices such as alarm systems and ignition kill-switches should be standard on all of  your vehicles.

 

Providing insurance companies with information such as where the vehicles are stored, and the security measures that are in place to guard them helps insurance providers assess the liability probability of their customers. This may result in a lower premium rate for commercial auto insurance of your business.

 

Evaluate Your Coverage Needs

 

Every business has specific inherent risks that only apply to that field of business. Some need specialized coverage to help cover itself against such liabilities. Therefore owners must find reliable commercial auto insurance to meet those needs.

 

It is important for business owners to review their insurance policy documents to look for coverages and elements that may have changed since the last time you looked at your policy.

 

A periodic review of a policy and evaluation of different policies can help business owners save money through a thorough review. In this, they will have a little more confidence knowing that they will have a solid policy that is suited for their business and will help cover their risks and liabilities.

 

Increase Your Deductible

 

An insurance deductible is primarily your out-of-pocket expenses towards a commercial car insurance claim. Generally, insurance providers require a deductible for specific type of car insurance claims such as collision coverage.

 

If business owners choose to pay a higher deductible, insurance providers reduce the premium amount because the policyholders are taking some of the liability risks away from the providers and covering it themselves. Every business owner needs to ensure their business assets– especially a significant investment like vehicles. It is crucial to consult a licensed professional when deciding on insurance policies.

 

To learn more about Commercial Auto Insurance, contact our team at ProtectiveAgency.com  Insurance or call 877-739-9367. Our licensed insurance agents will be happy to answer any questions you have.