If you have vehicles that you own through your business, which you have business employees drive, you need to be carrying commercial auto insurance on those vehicles. Commercial auto insurance is yet another business expense you need to budget for; luckily, there are steps you can take to reduce your commercial auto insurance premium.
Tip #1: Increase Your Deductible
Just like with car insurance for personal vehicles, one of the easiest ways to bring down your commercial auto insurance premium is to increase the deducible for your insurance. As a business, you should have the cash on hand to pay even the largest possible deductible. Raise your deductible as high as you can afford to pay if you were to have to use your insurance tomorrow and watch as the cost of your premium drops.
Tip #2: Pay with Electronic Transfer
Many auto insurance companies will lower the cost of your premium if you pay using an electronic funds transfer (EFT). Your auto insurance company will offer you small savings because you are saving the insurance company from having to pay transaction fees on a credit or debit card payment. These fees add up, which is why insurance companies like to reward customers for making EFT payments instead.
Tip #3: Pay All at Once
Additionally, if instead of paying in monthly installments, you pay your entire six-month premium all at once, you should further reduce your commercial premium rate for your business vehicles. Generally, when you pay in monthly installments, a small fee is tacked onto each payment. This fee is removed, and a little bit bigger discount is given when you pay upfront.
Tip #4: Always Check Driving Records
When you purchase commercial auto insurance, you are not just insuring your vehicle; you are adding each employee who may drive the vehicle onto your insurance policy. An employee's driving record can impact your insurance rates, which is why, when hiring, you should run a DMV check to make sure an employee has a good driving record.
You should also require all employees to update you to changes in their driving record and check for yourself each year. You only want to allow employees with good records to drive if you want to save money on your commercial auto insurance.
Reduce the cost of your commercial auto insurance for your business by increasing your deductible, paying in-full using an electronic funds transfer, and only allowing employees with clean driving records to drive your vehicles.
For more information on commercial auto insurance and other business insurance options, reach out to a local insurance agent.