Auto insurance for business vehicles covers your company against financial liability in the event that you are involved in an accident. Your entire business could be at risk if you don’t have the right insurance.
When choosing the right auto insurance policy for your business vehicles, there are many things to consider. Each should be discussed with an insurance agent. Your state requirements, number of vehicles and type of vehicles, drivers, drivers type, value of vehicles, purpose of vehicles, frequency of use, and business value will all impact your commercial insurance.
This may seem like a long list. However, there are many ways you can reduce the cost of auto insurance for your business vehicles. These are the same as your personal auto insurance, while others are specific to your business. These are some of the factors that can affect your premiums, and what you can do about them to make sure they stay as low as possible.
* Security and safety: GPS tracking, alarms, air bags and parking in safe areas can all help lower premiums. Many companies will consider it safer to park all your vehicles in a secure location than having employees take them home.
* Drivers: Your auto insurance for businesses is influenced by the quality of your drivers. You may have already done a background check of your drivers during the hiring process. If not, expect a detailed review of their DMV records to look for any accidents, DUIs or other violations.
* Pre-existing insurance: It depends on which insurance company you have. You may be able to save money by keeping your insurance coverage current without any lapse.
* Pay upfront: Many insurance companies that offer business auto insurance will give you a discount if your entire policy is paid in full. This saves you time and administration.
* Claims history: Having a clean record of filing claims and not having any accidents in the past will usually lower your rates. If your company has a history of safety, the agency will consider your business a high risk.
* Business experience: Many companies offering auto insurance for businesses offer discounts to those who have been in business for at minimum three years. If your company has a good credit history, you may also be eligible for discounts.
* Driver training: You may be eligible for a discount if you have drivers take a driver safety class. You will save money in all cases if you invest in driver safety training. Your drivers will be less likely to cause an accident, which will result in lower rates and fewer claims.
The type of insurance you choose is also important. Are you looking to insure your fleet with only liability insurance? Or do you want collision or comprehensive coverage as well? These are just some of the many factors that can impact the price of auto insurance for businesses vehicles. You want to get the best coverage and the lowest premium. To achieve this goal, you should meet with an agent to discuss your options.