If you have commercial vehicles, you need an auto policy that will protect not only them, but also you and your employees. Commercial auto insurance is one of the most important policies you'll have as a business owner, as a single claim could cost millions. Here's what you need to know about getting the best policy.
1. Figure Out Your Deductible
When you're buying personal insurance, having a high deductible can really hurt. For a business, though, a high deductible isn't usually as big of a problem - you already have cash at hand. Weigh out the pros and cons of having a high deductible for your business. You may find it makes more sense to save money on your monthly policy than to lower your deductible.
2. Ask About Payment Methods
If you're trying to save money on your policy, inquire about methods of payment. If you pay annually through EFT, the rates are often significantly less than if you're cutting a check month-to-month. Month-to-month or even quarterly payments can sometimes come with installment fees, even though the coverage period and everything else remains the same.
3. Don't Forget Rental Reimbursement
Rental reimbursement will reimburse you for the cost of another vehicle while your vehicles are out of commission. That's important for a business more than an individual: you may not even be able to complete your business operations without a vehicle at hand. Many insurance companies aren't just paying for a rental but also arranging it, which helps your business operate smoothly.
4. Make Sure Your Employees' Cars Are Covered
If your employees frequently run errands in their own cars, you still need a commercial auto policy. You also need to make sure it's going to cover your employees in this specific situation, as it may not be included in all policies. If your employees get into an accident while they're doing your work, you could still be liable. That includes not only their injuries, but also property damage they caused and other people involved.
5. Check Your Employees
Your employees are going to matter when you're getting auto insurance. If you have employees that have risky backgrounds, such as DUIs or other driving infractions, your auto insurance policy is going to soar. If you have very safe employees with pristine driving records, your insurance policy will be much more affordable.
In addition to that, your chances of getting into accidents will go down if you hire safer employees. Like a regular auto policy, your commercial auto insurance policy is likely to start going up in cost if you have a lot of claims within a short period of time.
6. Bundle Your Policy
You can bundle your auto insurance policy with your other business insurance policies in order to save money. Many insurance companies will give you a substantial discount for this. This also helps you to manage your policy easier, because you'll be able to go through a single point of contact for each claim or policy change.
7. Make Sure to Shop Around
Quotes from different commercial insurance companies can be wildly different, especially between national companies and local companies. You don't want to blindly select the lowest possible quote (they may not have the customer service, support, or coverage you need). Shop around to give you the ability to negotiate better with the insurance company you select.
When comparing insurance policies, ask why the coverage amounts are different between policies. Something significant could be left out. Are you ready to insure your company's fleet?
Start by getting some quotes. Contact the friendly professionals at Alliance Business & Commercial Insurance Services to get your options.