If your company operates using vehicles, you might want to purchase auto insurance coverage for your enterprise. However, before you get a policy, it is best if you understand the issues to consider and the fundamentals in commercial auto insurance policies.
The following are the basic things that you should ask yourself before you buy a commercial auto policy. Your given information will make it easier in comparing coverage and making an informed choice.
What type of vehicles are owned by your business?
If you want to purchase commercial automobile insurance, it can help if you make a list of vehicles that your company owns. Include details like gross vehicle weight (GVW), model, make and year.
Usually, vehicles that are a component of a fleet have lower rates compared to those that are not. A fleet means that your company owns five or more vehicles.
They usually divide the cars into a couple of broad categories in the commercial auto insurance policy. One is the private passenger type vehicle that includes station wagons, minivans, and sedans. The other includes the trailers, tractors, and trucks. Trucks have a variety of sizes that are subdivided into classes by their GVW when it comes to commercial auto insurance.
Is the company using vehicles it does not own?
There may be times when you use cars that the firm does not own. It can be the source of lawsuits against the company if these automobiles become involved in accidents. It is the primary reason why a business needs auto coverage even if it does not own vehicles.
There are two categories of vehicles that the company does not own:
– non-owned automobiles
– hired automobiles
1) Non-Owned Automobiles are vehicles that do not include hired autos. They are cars that your business uses but does not own.
2) Hired Automobiles are vehicles that your business borrows, hires, rents or leases.
Where and how are these vehicles used?
Whenever you purchase commercial auto insurance, the insurer usually asks how your family uses your vehicles and where you garage them because these things may affect the rate you will pay for the automobile insurance.
The rates have an inverse relation to the distance traveled and the time spent on the road. For example, a truck that goes for just a few miles a day may cost less compared to the insurance of the same truck that travels around 100 miles every day. Also, your rates can be affected where you drive or store your vehicles. Higher risks may entail higher costs.
Who is the owner of the vehicles?
Before purchasing automobile insurance, it is important to know how to list the business on the policy. Make sure that the entity or person who owns the vehicles will be the named insurer in the policy. As an example, if you are the owner of the Company A with a subsidiary called Company B, the plan should list the two companies as insured so you should get the commercial automobile coverage.
Since special rules may apply to a business that operates certain vehicle types, it is important for your insurance agent to know the laws that may affect you and what are the requirements that you need to meet. One example may include companies that transport cargo across state lines. They need to meet the requirements that the Department of Transportation imposed. There is also a business that may transport hazardous materials that can be subject to both federal and state regulations.
General tips that will help lower premiums
1) Only hire qualified drivers that have good driving records.
2) Make sure that you store your vehicles in a secure area that protects it from thieves and vandals.
3) Add car safety features like an automatic braking system (ABS), anti-lock brakes, a backup camera, and airbags to lower the insurance rates. Choose vehicles that are safe, reliable, and not too costly to repair.
4) Choose high deductibles because they make the coverage for physical damage cheaper.
5) Select vehicles that include anti-theft devices, an alarm system, GPS tracking and electronic keys that will protect your vehicles.
The fast and reliable service from Velox Insurance Agency will help you obtain the best coverage at a low price for your needs in auto insurance. Call us at 770-293-0623 or visit our office so we can help you today. Click here to get a free quote from us.