Business use vehicles can be expensive to own and operate. Between the cost of fuel, routine upkeep, and the occasional major repair, the cost to a business can be substantial. Here are some tips to finding affordable commercial auto insurance that will help reduce the cost to your business:
- Prescreen drivers. Before you even consider hiring a new driver, make sure you run a full background check including a motor vehicle report. Drivers with excessive moving violations can adversely affect your commercial auto insurance premiums. And, they are statistically more likely to be involved in an accident versus a driver without violations.
- Consider GPS tracking. While not free, GPS tracking has become extremely affordable and provides business owners with a wealth of useful information. Most GPS systems will provide real-time information about the location of vehicles, miles driven, excessive speed warnings, and hours of operation. Insurance underwriters are more inclined to give premium credits to business owners that use GPS tracking systems.
- Adopt a culture of safety. Employees respond to safety initiatives but the business owner has to develop a culture of safety that starts from the top down. This includes frequent discussions, incentive programs, and clear company policies regarding acceptable use of vehicles. Develop a fleet safety program and enforce it!
- Bundle your policies. Having multiple policies with the same insurance company works for both business insurance and personal insurance. Make sure you obtain quotes for your general liability, property, workers compensation, and commercial auto from the same insurance company. If your agent has split coverage between several insurance carriers, find out why and request a bundled quote.
- Review your coverage and deductibles. Do you have older vehicles that not worth much? Consider removing collision coverage to save a bit. Or, obtain quotes for higher deductibles on those your vehicles.
Ultimately, the best solution to find affordable commercial auto insurance is to minimize the frequency and severity of claims. Talk with your agent about loss control or risk management programs that are offered by your insurance company.
Lastly, contact the professionals at Safeguard Insurance for a no-obligation quote on your commercial auto insurance needs. We can provide quotes with multiple insurance companies and likely help you save money!