As a business owner, you are constantly juggling multiple responsibilities. Your most common objective is to increase profits while trying to minimize risks. Obtaining a strong commercial insurance policy can give you a layer of protection.
Commercial insurance is designed to protect your business in the event of an emergency. One of the major features of commercial insurance is the ability to add special coverage based on the unique needs of your business. For example, commercial auto insurance is designed to cover any vehicles used for business-related endeavors in the event of an emergency.
Commercial auto insurance also has drawbacks, as its rates fluctuate based on several factors. You may feel helpless against potential rate increases. However, there are a few things you can do to help lower your commercial auto insurance costs.
Commercial auto insurance rates vary on these factors:
The area where you are operating your business plays a significant role in determining your commercial auto insurance costs. If you're performing services in a high-traffic city, your commercial auto insurance rates will be higher compared to operating in a more rural area. Your commercial auto insurance rates will also increase if you are located in an area with a high number of claims.
Your commercial auto insurance costs are also heavily influenced by the type of industry that you are involved in. Generally, you can expect higher premiums if you are involved in a high-risk industry. If you only use commercial vehicles to conduct business a couple of days per week, you can lower your commercial auto insurance costs.
Your insurer will run a report on all of the designated drivers while finalizing your commercial auto insurance rates. It's recommended that you hire safe drivers for your staff. If your employees have multiple driving violations on their record, which will have a negative impact on your commercial auto insurance costs. Your insurer will assess your driving record dating back through the last three years.
Your commercial vehicle's year and model also influence your insurance costs. Older vehicles generally cost less to insure than newer models. The total usage is also important. You can expect to pay higher premiums if you use commercial vehicles on a daily basis to complete tasks.
The most fundamental part of your commercial auto insurance costs is the types of coverage included in the policy. Relying on basic coverage to protect your business is a mistake, especially if you are involved in a high-risk industry. Many businesses go under as a result of not having enough liability coverage. Liability disputes impact most businesses because the chances of a mistake happening at some point are high. It's important to carry enough liability insurance so that you can cover legal fees, medical treatment, and potential rehabilitation costs without draining your assets. Comprehensive auto insurance is also recommended, so you're fully covered if something unexpected happens to your vehicle.
One of the easiest ways to lower commercial auto insurance costs is by qualifying for several discounts. You may qualify for a loyalty discount if you have been with the same insurer for an extended period of time. Paying off your policy in full and obtaining a Commercial Driver's License can also help you qualify for discounts. Increasing your policy deductible can help you save money, though it isn't recommended unless your business is in good financial standing.
Commercial auto insurance fills an important role for your business. If you have any questions about coverage, contact the staff here at Knight Insurance Services today. We have helped our customers cover their vehicles for over 100 years, and we are committed to continuing to do so for several more.
