It is compulsory to have auto insurance in almost all the states in the USA. When using vehicles for a company’s operations, you will need commercial auto insurance.
But some people make mistakes when buying auto insurance. Enlisted below are some of the most common commercial auto insurance mistakes to avoid:
- Focusing Only On the Cost
Premium amounts change from one insurer to the other. However, cost should never be your sole criterion for decision-making when choosing a commercial auto insurance policy. Buying the cheapest policy might not provide you with the coverage you seek and cost you dearly later. Ensure you check the coverage offered in the policy in detail before taking the final call. Try comparing policies from different insurers.
- Cutting Back On Liability Insurance
Auto accidents usually involve expensive damages and very costly lawsuits. If the liability policy offers coverage only for the minimum amount defined by the law, you must make payments for the rest of the expenses.
The broker you hire must know your company’s risks and needs so that the most suitable liability coverage can be found.
- Not Reviewing Your Policy Before Renewing
One common commercial auto insurance mistake is not reviewing the policy before renewing. Regular reviewing of the policy is important as rates might vary, there might be the introduction of new products and processes in the market, etc. Moreover, the policy might no longer meet your current needs.
- Not Getting Adequate Coverage for Mobile Equipment
Mobile equipment is commercial or industrial equipment for transporting and moving materials. Examples include cranes, forklifts, backhoe loaders, etc. Generally, such equipment needs a General Liability policy. Additionally, they might need an auto liability insurance policy as well.
General liability insurance will be responsible for the coverage if the equipment is in the workplace and some accident occurs. However, if an accident happens in transit, an auto liability policy will offer ideal coverage.
- Choosing A Low Deductible at Any Cost
If you choose a low deductible, you must pay a high premium and vice versa. You must understand the risks your commercial vehicle faces in everyday operations and decide which deductible will be most suitable for your needs.
Talk to an insurance agent who knows where your business is located. The agent can guide which kind of deductible is most suitable for your business.
- Not Insuring Rentals or Non-Owned Vehicles
Not ensuring non-owned vehicles and rentals is a common commercial auto insurance mistake businesses make. A commercial auto insurance policy might not automatically have liability coverage for such vehicles.
You must provide all necessary details to your insurance provider to get maximum coverage without missing out on anything.
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