Commercial auto insurance protects business owners and their employees by providing a variety of coverage for cars, trucks, and other vehicles used for commercial purposes. There are three basic parts of a commercial auto insurance policy:
- Physical damages- includes collision and comprehensive coverage
- Liability insurance- includes property damages, bodily injuries, uninsured/underinsured motorists
- Other coverage- includes medical payments, rental reimbursements, lease gap coverage, etc.
As a rule of thumb, you will need commercial auto insurance coverage for every vehicle that you are operating for your business. However, this doesn’t include vehicles that you use to commute to and from work.
Tips to Save on Commercial Auto Insurance
The following are a few ways in which you can save money on commercial auto insurance.
Reduce Costs with Risk Engineering
If you own a fleet of vehicles at your disposal, look for an insurance company with a risk engineering team of experts who can help improve the safety of your commercial vehicles, thus averting accidents.
Here are some of the duties of a risk engineering team:
- A thorough analysis of the company’s driver(s) safety records
- A look into all potential causes of accidents
- Helpful recommendations on how to prevent accidents
Look for Discounted Rates
Insurers offer several discounts for many reasons. Policyholders may be rewarded with discounted rates for making safe choices. Keeping a good driving record, taking out multiple plans from the same provider, and installing safety equipment in your vehicles can lower your risk and may qualify you for discounts. Also, if your business has not filed a claim in a while, you may be eligible for a discount.
Increase Your Deductible
Increasing your deductible will automatically reduce your premiums. However, do not set your deductible at an unrealistic amount that will be difficult to come up with, should a claim need to be filed. Knowing how to balance both, can help you save on your commercial auto coverage.
Change Your Payment Method
If you are fond of paying in parts, you may be missing out on some helpful discounts. Providers tend to reward those who pay the full premium upfront instead of paying them monthly. Also, call your provider to know if some payment methods qualify you for discounts, like the Electronic Bank Transfer (EBT), which attracts discounts in some companies.
Review Driving Records
Businesses are advised to review the driving records of all their drivers to ensure they are low-risk, good drivers. A bad driving record attracts higher rates, escalating the cost of the auto insurance policy.
You can bundle your commercial auto insurance with other policies, such as property insurance, business interruption, and so on. Call your insurance provider to know about the bundles that include auto policy, as putting all your coverages into a single plan will help save money.
These are a few ways in which you can save on a commercial auto insurance policy. Talk to the experts for more information on how to save money on auto insurance. For all of your insurance needs, contact the experts at Young Insurance. We are ready to help you find reliable insurance today.