9 Tips For Buying and Saving on Commercial Auto Insurance

Check employee driving records before you hire. When hiring an employee who will drive a company vehicle or use their vehicle as part of their job, perform a Department of Motor Vehicles screening before hiring because employees’ driving records impact your premium. Having employees with good driving records listed on your commercial auto policy will help keep your premium low. Employees with poor driving records not only adversely affect your premiums but can put the entire future of your business at risk.

Buy ‘hired & non-owned vehicle’ coverage.  Employees often use their vehicles for business errands/purposes. Also, employees may borrow or rent a car on a business trip. These are situations where a commercial auto policy excludes coverage unless you purchase optional Hired and Non-owned Auto Liability and Hired Auto Physical Damage coverage. It’s a small additional cost to ensure your company is protected.

Make sure your insurance carrier will add an ‘additional insured.’ If your business involves contracts that could require you to have another party added as an additional insured to your policy, be sure the carrier you chose can handle this need.

Buy ‘driver other car’ coverage. If you own the business and don’t have a separate personal auto policy because the company owns all vehicles, add this coverage to your commercial auto policy. This will ensure that you (and your spouse) are covered if you drive a company-owned vehicle for personal use.  This excludes other cars owned by a household member or friend. It provides coverage similar to a personal auto policy.

Buy ‘rental reimbursement’ coverage. If your company vehicle is damaged in an accident and has to go into the shop for repairs, this coverage will help to cover the costs of renting a replacement vehicle.

Purchase higher limits for better protection. Understandably, you want to keep your premiums low, but there’s no more expensive policy than one that doesn’t have sufficient coverage to protect you if you’re sued.  In today’s litigious society, people sue quickly, and judgments can be hundreds of thousands of dollars or more. Don’t skimp on liability coverage. If your business needs more coverage than available on an auto policy, consider an umbrella liability policy to extend your protection.

Combine commercial auto with a BOP or package policy. Having your Commercial Auto policy with the same carrier that writes your Business Owner Policy or Package may provide you with discounts depending on your situation.

Pay with EFT.  Many insurance companies will waive installment fees if you make your payments using Electronic Funds Transfer withdrawal of your payment from your bank account.  Not only does this save on costs, but it can also save you time and avoid the possibility of missing a payment, which can result in late fees as well as possible cancellations.

Increase your deductible. The higher your deductible, the lower your premium, so evaluate what you can afford to pay if you file a claim. Over time, the premium savings can offset the deductible amount you’d have to pay. Be sure not to set the deductible to an amount you can’t afford easily because claims can happen anytime.

Contact us to review your auto insurance coverage and compare options.