Saving Your Business Money in an Unexpected Area: Commercial Auto Insurance

Businesses must have commercial auto insurance on all commercial autos in operation. Insurance works to protect vehicle owners from getting sued and being held personally liable for accidents.

Commercial needs are much higher than a standard insurance plan.

Insurance for a regular auto can cost $1,200 – $2,400 or more per year, depending on the type of vehicle being insured. Tractor trailer owners that haul goods can spend $1,000 per month on their commercial auto insurance policy.

Taxis can spend $5,000 – $10,000 per year in insurance premiums.

An immense expense for all business entities, auto insurance is one area where businesses fail to find ways to cut back.

How often do you try to look for new rates for your own auto insurance?

Businesses can save a significant amount of money per year on their auto insurance.

Hire Employees Strategically

Employees that have the privilege to drive a company vehicle must be properly vetted. These individuals must have a solid driving record. If the employee has a spotty driving record, this will result in:

1. Higher risks for your business
2. Impact your insurance rates

If you hire employees that have their commercial driver’s licenses, this will also work in your favor to lower your rates. Insurance companies will offer discounts for employees that have commercial driver’s licenses.

Work with an Insurance Broker

The duty of an insurance broker is to help negotiate the best rates for your insurance policy. A lot of business owners will fill in quotes online or just go with the first insurance company that sounds decent.

Big mistake.

Insurance brokers can help you find the best rates without taking time away from your business. You want to shop around to find the best rate for your auto insurance. Experts recommend getting quotes from at least 3 different insurers.

You’ll be able to negotiate rates better, get a feel of current rates, and even know what policy standards you need to make sure that you have.

Insurance isn’t always about choosing the cheapest policy.

What matters most is that the insurance policy includes the best possible coverage for your business. It’s worth it to pay slightly more for your insurance to enjoy a robust set of policy benefits.

Saving Money Through Savvy Adjustments

Policies have a lot of leeway that allow you to make adjustments. A few key areas where you can make adjustments to save money, include:

• Choose higher deductibles, lowering the risk of the insurer.
• Choosing a different payment option. Paying in full can help you save 10% on your premiums. There are also some companies offering discounts for electronic funds transfers.
• Bundle your policies together. Choose multiple insurance coverage from the same insurer to save money. This may include commercial auto insurance, general liability insurance, workers’ compensation insurance and other insurance products.

Simple adjustments to your insurance policy can make a dramatic difference in your premiums. Make the right adjustments or call your insurance rep to find out how you can save money on your premiums.