Where to Find the Best Business Auto Insurance

Business owners who have vehicles used to transport equipment, products or people need special auto insurance to cover their fleet. This coverage should be comprehensive in nature, meaning it covers all eventualities. Some companies specialize in this type of insurance but almost all auto insurers have commercial vehicle coverage available. The trick is to find the best one at the most reasonable cost and this can be easily accomplished by going online.

Big name providers are big for a reason. They offer experience and usually have many offices scattered throughout the country so, in the event of having to make a claim, they’re convenient to reach. The only real negative is that their products are often more expensive to buy than those of the smaller companies with whom they’re competing for your business.

Businesses having a vehicle fleet are exposed to great risk and precautions need to be taken to protect the interests of the owners. People driving your equipment may be careful and safety conscious but who knows? You want insurance coverage to provide protection from any eventuality.

Acceptable business auto coverage should be all-inclusive and comprehensive. Some of the more common benefits include protection against collision damage, liability and medical costs resulting from an accident. It should also contain protection for one of your drivers being struck by an uninsured motorist. If you rent or borrow equipment, this should also be covered, as should any personal vehicle an employee uses for business purposes.

There are sites online that offer a ‘clearing house’ approach to selling vehicle insurance and these can save you time and headaches when comparing different policies. After entering some basic information they will supply you with a list of companies offering the type of coverage in which you’re interested and you can easily compare one policy to another. The Internet makes buying insurance fairly painless.

When considering which policy to buy cost, while a major factor, isn’t the only criterion. Every policy has its own set of terms and most will have exclusions that you should understand. Most will also have options regarding the amount of the deductible required when making a claim.

If you do have occasion to make a claim on your business auto insurance policy it’s nice to be dealing with an outfit that has 24/7 claims service and is well reputed to make fair and timely decisions in claims payments. Contracting with a company having a strong financial rating will also put your mind at ease as regards the company’s strength and solvency. The best policy in the world is useless if claims are not handled judiciously.

Small Business Auto Insurance – Insuring Your Business Assets

Small business auto insurance even for those running a small business is sometimes deemed necessary and sometimes not. If running a small home business most of the insurance pundits suggest judging how much you’ll be using your car for business purposes and what liability issues may prevail and then deciding whether to go with personal or small business auto insurance.

When It’s The Right Insurance To Buy

OK so now you’re wondering when should you buy small business auto insurance. Well you should buy it if you are going to be making ample use of your vehicles. For instance, a plumber operating from his home would want to have small business insurance whereas someone who is a writer wouldn’t. The point of comparison here is that these are both home based businesses. The plumber uses his home as his office and point of return and departure, he stores his equipment and other necessities at his home. The writer works at home and may actually use her car less than someone going to the office or some other form of job outside the house since she stays home typing all day.

The plumber needs liability coverage for his vehicle and his company needs to be covered in case he damages any property belonging to a client, as well as covering any possible employees. So here we have examples of two home businesses and two very different insurance needs.

The Cost Of Auto Insurance

Cost is always uppermost on people’s minds. We want to get the most bang for the buck and naturally the same holds true when buying insurance. The ease of getting many a quote from which to compare policies makes it possible to efficiently shop around and sometimes even qualify for their discounts.

Generally speaking small business auto insurance is priced the same as personal auto insurance. Such factors as the number of miles driven per day, who is driving and driving records of those driving are standard no matter whether buying personal or business auto insurance. With business insurance though comes the added emphasis placed on liability. The higher the limits the higher the premium but depending on what the business entails that might just be a necessary evil to swallow as part of the business expenses. The old adage better to be safe that sorry is a good one to follow when purchasing this type of insurance.

8 Tips to Save on Business Auto Insurance

Here are eight tips to help you save money on your business auto insurance policy without sacrificing your coverage.

  1. Hire safe drivers: Your insurance premiums will go up considerably if you hire an employee with points against their license because they pose a greater risk of accident to your company. Instead, make sure you hire employees with clean driving records or, reserve the driving duty for those who do.
  2. Invest in training: Making safe driving classes mandatory for your employees will show you insurer that you are serious about safety and will train your driving employees to act properly when on the road. This will help reduce the risk that they pose and will help reduce your rates.
  3. Raise your deductibles: It is no secret that increased deductibles lower premiums. It is important that you review your budget annually and impose deductibles that you can afford to pay. As your revenues increase, it is possible that your deductibles can too. But make sure that you do not get too aggressive with your deductibles and that you can afford those you set. Otherwise, you could be setting yourself up for more financial damage than an expensive premium would create.
  4. Review your coverage annually: When you simply renew the same insurance policy over and over without reviewing it, you could be missing subtle changes that have occurred in your business and that should be reflected in your policy. For example, it is possible that you have too much insurance on company vehicles that have lost value over the years or, maybe you are covered for incidents that you and your drivers have little risk in encountering. It is important to review all these factors annually so you can stay on top of inefficiencies and streamline both your policy and your premium.
  5. Lower your limits: Keep track of the value of your fleet and lower your limits accordingly so that you can keep your policy affordable. Your company vehicles lose value every year and, if they are driven often, may lose value at a faster rate than a normal car. There is no point in having a high limit if your cars aren’t worth that much, unless you are looking for replacement value instead of actual value. When it comes to medical and bodily injury coverage, be sure not to lower your limits too aggressively since these costs tend to increase over the year rather than decrease.
  6. Invest in anti-theft devices: Make sure you have tracking systems, steering wheel locking devices and alarms to help reduce the risk of theft and reduce your insurance premium. Also, make sure your cars are stored in well-lit areas to further reduce the risk of vandalism or theft.
  7. Safety features: Make sure your cars have safety features such as airbags, automatic seatbelts and anti-lock brakes. All of these automated safety devices will help reduce injuries when accidents occur which reduces the possible medical expenses and reduces your insurance company’s risk.
  8. Reduce endorsements: You can add endorsements like driver-other car and non-owned vehicle, but these endorsements will increase your premium. Evaluate their cost in relation to having a separate policy for your family or not allowing employees to drive their vehicles for company business.

Remember, when it comes to controlling premium costs, it is all about reducing the risks your insurance company takes on. Whether those risks involve exposure to claims or the expense of potential claims, your reducing exposure to them will always result in lower premiums. Plus, you’ll get the added benefit of reducing your own company’s exposure to these insurable incidents which, even when covered by insurance, can put a cramp in your business operations as well as your wallet.