If you operate a business that requires your employees to drive a company car — you must have commercial auto insurance coverage. For some business owners, this discovery comes along with the fear of a costly added expense. However, it is important to remember that you can secure auto insurance for your commercial needs without having to go over budget. Learn what you can do to save in this area.
To save on your commercial auto insurance, be mindful of the types of vehicles you plan to include in your fleet, as certain vehicles do tend to cost more to insure than others. Vehicles that have a high incidence of theft are sometimes costlier to insure than vehicles with a lower risk.
For example, with a service vehicle, choosing something that allows all of your equipment to remain safely enclosed and locked inside the vehicle instead of out in the open, such as with a flatbed truck, could offer you some savings as it is considered more secure.
While you want to make sure the vehicle meets your business needs, you should also do your research to ensure it is not a costly addition. If you have questions about how certain vehicles affect pricing, do not hesitate to contact the insurance company and ask questions. Someone will be more than happy to assist you.
An excellent measure you can take is to screen the driving record of all employees who will operate your company vehicles. Commercial auto insurance policies are registered under the business. However, it is important to keep in mind that the insurance company will typically require that the business lists all regular drivers of the vehicles as operators on the policy.
As you might imagine, the insurance company will review the driving records of every person listed and base the policy premium, in part, on their driving records. For this reason, someone with a history of driving violations or accidents could cause the policy to be higher.
If you want to keep your cost as low as possible, aim to only hire drivers who have safe driving records. Not only does this keep your insurance cost lower, but it can also allow for the safer operation of your company vehicles.
Keep these tips in mind as you search for a commercial auto insurance policy that meets your coverage needs, as well as your budget. Contact a commercial auto insurance provider for more information.