Business Type :

As a business owner, your top priority is making money. The quest to increase profits for your small business is never-ending.

One way to increase profits is to cut costs. Luckily for those whose business involves owning and operating company vehicles, finding ways to save money on commercial auto insurance is one way you can help your bottom line.

First of all, who needs commercial auto insurance?

If you own a business and own vehicles that are titled in the company’s name, your commercial vehicles need insurance with complete coverage. If you own a business, but don’t have any employees and use your vehicle to drive to and from work, a personal auto policy might be sufficient.

If you do have employees and they use their own vehicles for business purposes, it’s important to ensure that they have sufficient liability with their own insurance policy. If the employee is involved in an accident, their policy will pay up to its limits, but if the driver of the other vehicle sues the company, it’s important that the company at least considers adding a “non-owned vehicle” clause to their commercial insurance coverage.

Commercial and personal auto policies have many things in common, but a key difference is that commercial auto provides coverage that protects your business from uncovered liabilities that result from a serious accident. If your vehicle is regularly being used for business purposes, it should be covered under a commercial auto policy.

1. Consider bundling with a business owner’s policy.

This type of policy can bundle various forms of protection insurance together such as property insurance, business interruption, and some liability into a single plan and save some money. Do your research, however, because many bundles don’t include auto.

2. Consider a different bundle.

Some commercial insurance providers also offer home and auto. Combining these could save money without touching anything in your policy.

3. Evaluate your protection and your risks.

Review your policy carefully to see if there are any elements you don’t need. You don’t want to put your company at risk, but a periodic review of your policy can reveal places you might be able to save money.

4. Increase your deductible.

In general, the higher the deductible, the lower your premium and vice versa. Many don’t understand the correlation of this simple way to save money. Just be sure to not set your deductible to an unreasonable amount that you could not easily come up with if a claim needs to be filed.

5. Ask about discounts for being claim-free.

If your business has not filed a claim in a while, there may be a discount available.

6. Change your payment method.

There are oftentimes discounts available if you pay your full premium upfront instead of monthly. Many companies also offer discounts if you pay by EBT (electronic bank transfer).

7. Review driving records.

The DMV recommends checking the driving records of all those who will be included on your policy. This affects your rates significantly.

When reviewing any potential changes that could save your business some money on your commercial auto policy, be sure to have enough coverage to protect your business assets and liabilities. We have been helping small business owners improve their business since 2001. We offer a quick and easy quote process that outlines all options available to you.