If you are a fleet manager or a business owner looking for tips on how to buy commercial auto insurance, you are in the right place. This post will provide you a brief but valuable insight into aspects you must consider when shopping for a commercial auto insurance policy.
Commercial auto insurance protects company-owned vehicles that you use purely for business operations. Moreover, it also offers protection to the commercial drivers as well as the passengers. In case you or your driver were at fault and caused injuries to the driver and passengers of other vehicles, your commercial insurance policy will cover the expense.
Cost is a Critical
Cost is one of the most critical when it comes to buying commercial auto insurance. It can range between $1000 to several thousand dollars per year. However, commercial auto insurance costs a bit more than personal car insurance.
Why? Because it offers higher liability coverages and also extends to cover your employees, passengers. Moreover, commercial auto insurance also covers a wide range of vehicles, including loading-trucks, delivery fans, etc.
However, just like personal car insurance, your premium for commercial vehicle insurance policy will consider various factors. These include your location, the drivers’ background checks, and what type of vehicle you want to include in the commercial auto insurance plan.
Things to Consider When Buying
Whether it is a single car or an entire fleet with various types of vehicles, you can get commercial auto insurance for sizes. However, you must buy a policy that offers comprehensive coverage at an affordable price.
Here are some of the aspects that you must consider when buying commercial auto insurance.
- Hiring Smartly
Always pay due diligence when it comes to hiring the drivers. You must ensure to perform a background check with the Department of Motor Vehicles. This screening can play a vital role in securing reasonable rates on your commercial auto insurance.
- Compare Prices
There is strong competition in the market when it comes to a commercial insurance provider. Therefore, insurance companies offer all kinds of perks and benefits. However, expensive does not always mean the best coverage.
It is important that you gather as many commercial insurance quotes as possible. Then it would be up to you to compare these quotes and pick the one that fits your budget while offering the most comprehensive benefits with the highest coverage limits.
- Ask the Insurance Carrier to add “additional Insured.”
If your company requires contracted personnel to drive your commercial vehicles, then ask the insurance provider to add “additional insured” to your policy.
- Buying “Rental Reimbursement” Coverage
Suppose your commercial vehicle sustains damage in an accident and requires being at a repair shop for some time. In this scenario, rental reimbursement coverage will help you cover the cost of a rented replacement vehicle.
- Make Sure To Secure Higher Coverage Limits
While you wish to keep the premiums as low as possible, you must never compromise on getting the best protection. Commercial auto insurance with a low premium and inadequate coverage will do you more harm than good in the long-run.
While you may pay a little more in monthly premiums, it can help you save thousands in case of an accident. It is understandable that you have to stay within a budget. Always make sure that you purchase a policy offering the highest limits for the coverages you want for your vehicles.
- Paying in Lump Sum and EFT Can Help
If you pay the full year premium in a lump sum amount, an insurance company may offer you a lucrative discount. Similarly, you can qualify for an installment fees waiver if you chose to pay via Electronic Funds Transfer (ETF) from your bank account directly instead of making manual monthly payments.
ETF will not only save you time and money but also avoid any incidents of missing a premium payment. Missing your monthly premium can result in the cancellation of your commercial auto insurance coverage.
- Opting for High Deductible
If you wish to lower your premiums, you can opt to pay a high deductible. A deductible is an amount you pay when filing a claim for the auto insurance policy to cover any damages. However, you must set a deductible at an amount that you will be able to pay when the time comes.
Where Can you Buy Commercial Auto Insurance
Most auto insurance companies selling personal auto insurance might offer commercial coverages too. However, it is always a good idea to buy from auto insurance providers specializing in commercial auto insurance coverage. This is important because these companies will have better coverages and offer additional coverages to protect your commercial vehicles and employees in various circumstances and accidents.
Whether you are a small business with a few vehicles or a large corporation with a large fleet, Velox Insurance can help you secure the best commercial auto insurance policy. Contact Velox Insurance today and discuss your commercial needs and get an online quote within 30 seconds.