Business owners understand that there are multiple rights and responsibilities to follow while operating a business. One of those responsibilities is purchasing insurance. While purchasing insurance is a legal requirement, it also helps protect you in emergency situations. Perhaps you have a fleet of vehicles that you rely on to keep the business functioning properly. Commercial auto insurance provides similar benefits to traditional auto policies for your company vehicles. However, commercial auto insurance is more expensive than traditional auto insurance policies. If your commercial auto insurance premiums are causing financial strain, here’s a look at a few ways that you can reduce your commercial auto insurance rates.
Tips That Can Help You Save on Commercial Auto Premiums
- Hire Good Drivers
One of the easiest commercial auto insurance saving tips is to hire employees that have clean driving records. Commercial auto insurance is very expensive if you have multiple high-risk drivers on staff. Hiring good drivers lowers your commercial premiums. It’s recommended that you research a potential employee’s driving record through the Local Department of Motor Vehicles. You can learn whether the potential employee has a history of tickets or serious offenses such as DWI on their record. It’s also recommended that you run yearly background checks on your employees. Many insurers lower commercial auto insurance premiums if employees with poor driving records take a safe driving course.
- Focus on The Most Important Coverage
It’s recommended that you look over your commercial auto insurance policy to see if there is unnecessary coverage that you can get rid of. Eliminating some coverage can help you save money in the long run. Hired and non-owned coverage may be a good alternative. You can add this coverage if you’re renting a vehicle to perform a specific function or if your employees are using their personal vehicles on the job.
- Changing Your Deductible
Your commercial auto insurance deductible is the out-of-pocket costs you’re expected to pay toward a claim before your insurer takes over. Increasing your deductible is a common auto insurance saving tip. While increasing your deductible lowers your insurance premiums, you’re also taking a risk because you’ll need the money to cover a potential loss.
- Utilizing Safety Features
Installing high-level security features on your vehicle can help lower your commercial auto insurance premiums. Enhanced safety features reduce the likelihood that your vehicles will be stolen or vandalized. Consider parking your commercial vehicles in a garage or private lot.
- Maintain a High Credit Score
Maintaining good credit helps lower your commercial auto premiums. You may qualify for potential discounts. It’s recommended that you pay your bills on time and try to minimize debt.
- Bundling Coverage
Another key commercial auto insurance saving tip is bundling coverage. Consider bundling commercial auto insurance with commercial property and liability insurance. You’ll save money by paying one rate for all three policies instead of purchasing them separately. Most insurance companies offer a discount to companies who opt to bundle coverage.
Consult with J. Archer Insurance Group to Find the Best Commercial Auto Insurance
While purchasing commercial auto insurance may cause some financial strain initially, there are a few ways that you can lower your premiums over the long run. The team here at J. Archer Insurance Group will help you find the right coverage to protect your business. Contact us today to get a quote.
