Commercial auto insurance is an important choice for businesses that rely on vehicles for their operations. Finding the best commercial auto insurance rates without sacrificing on coverage can be a challenge for some. Still, it’s vital to find the right balance between cheap insurance and coverage for your employees. Explore the best strategies for finding affordable commercial vehicle insurance for your business.
Understanding the Need for Commercial Auto Insurance
This type of insurance is available to protect businesses when using vehicles for work-related reasons. Commercial auto insurance covers multiple drivers and business equipment and has higher liability limits. Whether your business operates a small or large fleet, finding the right insurance policy is crucial. Some key features you’ll want to consider are:
- Liability coverage: Covers bodily injury and any property damage costs your vehicles may incur in an accident
- Collision coverage: Pays for the repairs or replacement of any commercial vehicle after an accident
- Comprehensive coverage: Comprehensive commercial auto insurance coverage protects your company from theft, vandalism, natural disasters, and other non-accident-related damages
- Medical payments coverage: This handles medical expenses for the fleet driver and any passengers in the event of a collision
- Uninsured/underinsured motorist coverage: Covers the driver if not at fault and the other driver involved has insufficient coverage
- Hired and non-owned auto insurance: Covers any rental cars or employees’ personal vehicles when used for business purposes
Now that you know the type of coverage you need for your business, it’s time to look at insurance companies and decide which one is best for your needs.
10 Tips on Finding Affordable Commercial Auto Insurance
Compare Policies
The easiest way to secure affordable commercial vehicle insurance is to compare several different insurance companies. Each insurance company assesses risk differently, which will lead to drastically different premium rates. Use online tools or work with a local broker to research different policies.
Choose Coverage Based on Your Business Size
A common mistake for small businesses is choosing unnecessary add-ons for their auto insurance. To find the best commercial auto insurance rates, consider your business size and risk level. A small business with only one or two fleet vehicles may only need basic liability and collision coverage, whereas a large fleet operation might need add-ons like comprehensive and uninsured motorist coverage.
Bundle Insurance Policies
Many insurance companies offer discounts when businesses choose to bundle multiple policies. If you’re considering commercial auto insurance for small businesses, think about purchasing it with general liability or workers’ compensation. This can lead to significant savings while still ensuring comprehensive protection.
Increase Your Deductible
Similar to personal auto insurance, increasing your deductible can significantly lower your monthly premium. When you choose a higher deductible, you will take on more financial responsibility for smaller collisions, but it can reduce the cost of your policy over time.
Keep a Good Driving Record
A good driving record can go a long way when considering your commercial auto insurance since companies assess risk based on driving history. If all your employees who are driving your vehicles have a clean driving record, you can sometimes get a lower rate or discount on your policy. If looking to improve your driving record, you could introduce driver training programs, enforce strict rules on traffic violations, and monitor your vehicles’ usage.
Ask About Discounts
Common discounts available for commercial auto insurance policies include:
- Clean driving record
- Multiple vehicles covered under one policy
- Paying your premium annually instead of monthly
- Adding safety features like GPS tracking and anti-theft devices
- Driving eco-friendly or fuel-efficient vehicles
Find a Top-Rated Insurance Provider
Working with a top-rated commercial vehicle insurance provider means getting reliable service and a great claims service. Research companies that have strong financial ratings, good customer reviews, and solid customer support. Some of the best on the market include:
Use online tools for each provider to efficiently compare costs and coverage options.
Regularly Review and Update Your Policy
As your business grows, your needs may change over time. You may introduce more vehicles to your fleet, expand or reduce your business operations, and new insurance discounts may be available. Keep an eye on your policy to make sure it is growing as your business does.
Consider Usage-Based Plans
Usage-based insurance (UBI) allows businesses to pay only for what they use. If you don’t have a consistent schedule for your fleet of vehicles, UBI could be the choice for you. They also typically have lower rates when compared to traditional policies.
Avoid Common Mistakes
In order to find the best affordable commercial vehicle insurance for your business, make sure not to underinsure your business. It’s vital that you compare policies and pay close attention to all the details your policy covers.
Finding great commercial vehicle insurance without compromising on coverage requires attention to detail. Be sure to compare all auto insurance policies, leverage discounts, and maintain a clean driving record; these factors will all help businesses find the best rates. Whether you’re a small business or a large company handling a large fleet of vehicles, taking the time to research insurance options can provide substantial savings while still keeping your business protected.
