These are eight ways to save money on business auto insurance without sacrificing coverage.
- Hire safe drivers: Your insurance premiums will go up considerably if you hire an employee with points against their license because they pose a greater risk of accident to your company. Hire only clean drivers or reserve driving duties for those with good driving records.
- Invest in Training: Making safe driving classes mandatory for your employees will show you insurer that you are serious about safety and will train your driving employees to act properly when on the road. This will lower the risk they are posing and reduce your rates.
- Raise your deductibles: It is no secret that increased deductibles lower premiums. It is crucial to review your budget each year and determine the deductibles you are able to afford. You might see your deductibles increase with your revenue. You should be careful not to go too far with your deductibles. Also, make sure you have the funds you need to pay them. You could end up causing more financial damage than a premium.
- Check your coverage every year: When you simply renew the same insurance policy over and over without reviewing it, you could be missing subtle changes that have occurred in your business and that should be reflected in your policy. You might have too much coverage on company vehicles that has lost value or that covers only minor accidents that you or your drivers are likely to experience. You should review these factors every year to ensure that you are not overlooking inefficiencies and optimize your policy.
- Lower your limits: Keep track of the value of your fleet and lower your limits accordingly so that you can keep your policy affordable. The value of company vehicles decreases every year. If they are driven more often than normal, they may lose value faster than a regular car. If your vehicles aren’t worth as much as you think, there is no need to set a high limit. Limits for bodily injury and medical coverage should not be lowered too much. These costs tend to rise over the years rather than decrease.
- Invest in anti-theft devices: Make sure you have tracking systems, steering wheel locking devices and alarms to help reduce the risk of theft and reduce your insurance premium. To further reduce theft or vandalism, ensure that your car is well lit.
- Safety features Make sure your cars have safety features such as airbags, automatic seatbelts and anti-lock brakes. Automated safety devices can help reduce injuries and decrease the risk for your insurance company.
- Reduce endorsements: You can add endorsements like driver-other car and non-owned vehicle, but these endorsements will increase your premium. You should weigh their cost against having a separate policy for you family and allowing employees access to their vehicles for business purposes.
It is all about reducing risks that your insurance company takes on when trying to control premium costs. Your ability to reduce your exposure to potential claims or the expense associated with them will lead to lower premiums. You’ll also be able to reduce your company’s exposures to insurable events, which can cause problems in both your business and your wallet.
