The majority of businesses use vehicles for various work-related purposes. As a business owner, do you need to have commercial car insurance? The following information tackles the importance of purchasing a car policy.
What Type of Cars Do You Have?
Company vehicles are classified into two types:
- Private passenger cars – These consist of station wagons, minivans, and sedans.
- Tractors, trailers, and trucks – These include a range of vehicles, which are divided into different groups according to their gross weight.
List all your company vehicles, including their model, make, year, and gross vehicle weight (for your trucks).
How to Reduce Car Insurance Premiums
- Lowering the cost of your commercial car insurance is possible. Take a look at these steps:
- Install protective features in your vehicles that can ward off thieves. There are many anti-theft devices available on the market such as an alarm system, GPS tracking, backup camera, anti-lock brakes, and electronic keys.
- If you opt for high deductibles, the coverage for the commercial physical damage gets reduced.
- You can protect your vehicles from getting involved in accidents by hiring qualified and competent drivers.
- If you are buying new vehicles for your business operations, go for dependable and safe ones. They should be low maintenance and the repair are not overly expensive. Also, it is not a good idea to leave the keys inside the company vehicles.
- Ideally, store all your company vehicles in a safe location without the risk of thieves, vandalism, and harsh weather conditions.
Where and How Are Your Company Vehicles Used?
This is an important question that most insurance company will ask you. How you use the vehicles and the frequency can influence the rates of your car insurance policy. Insurers determine how much time a vehicle is used for your business operations, as well as the traveled distance.
Basically, a vehicle that sits for long hours in your company location will have lower rate compared to the one that you use on a regular basis. If your semi-truck trailer runs at 100 miles a day, you would pay more for it to be insured than your delivery van that only travels a few miles a week.
The place that you use to park your company vehicles and where they travel, such as the delivery locations, are factors that insurance firms closely look into. If a location has a lot of potential threats, like thefts, accidents, and hurricanes, this can significantly affect your commercial auto policy rates.
Before you purchase your commercial auto insurance, keep these factors in mind. An insurance agent will explain the details much further. At Velox Insurance, we take pride in making sure that our clients are well-protected at prices they can afford. To learn more about how we can help you, please contact our agency at (855) 468-3569 or Click Here to request a free quote.