Tips For Getting Lower Rates On Business Auto Insurance 

Do you own a business, have a fleet of vehicles you need to insure, and are wondering which company would be your best partner? Insuring your business vehicles is a necessary but sometimes costly process. However, if you work with a reputable insurance agency–and have an insurance agent who is receptive to your needs and makes time in his or her schedule to speak with you regularly–you can make the process as stress-free as possible and ensure you get the lowest possible rates while still protecting your business.

Here are some tips on getting lower rates on your business auto insurance

Tip #1: Raise Deductibles 

The deductible—or amount you will be responsible for paying if you file a claim on one of your vehicles—is an amount that can be adjusted depending on your needs and budget. While raising the deductibles on your business automobiles means you risk paying more if anything were to happen to them, it will save you money on your monthly bill. 

Tip #2: Combine Coverages 

If you have your business automobiles ensured with a different company than your building and other policies, you are probably paying too much. When you combine everything with one company, you are likely to receive bundling discounts. Ask your business auto insurance agent if this is a possibility and how much you will save if you move your other coverages to their company. 

Tip #3: Make and Emphasize a Safety Plan 

One of the best ways to keep your rates low is to keep your employees and fleet safe. The fewer claims you have on your vehicles, the lower your premiums will be. Make sure you keep your fleet up-to-date on scheduled services, train your drivers on safety best practices, and have ongoing safety meetings and education to reduce liability. 

Tip #4: Install Telematics

Telematic devices collect data on your drivers’ behavior behind the wheel—including their speed, how well they adhere to traffic rules, and their braking patterns. Not only is this useful information for you as a business owner that will help you keep your company safe, but it may also lead to discounts from your insurance provider as it helps them assess risk. Using the information provided by telematics can help you develop and enhance your safety program as well as help you with HR processes to hire and promote drivers. 

Tip #5: Have a Vehicle Maintenance Program 

Well-maintained vehicles are less likely to be involved in accidents. If you don’t already have an ongoing maintenance program for your vehicles, consider creating one. You can partner with a car care company that regularly works with fleets and see if they have programs for fleet maintenance or you can create your own program and work with a car care company to perform the work.

Tip #6: Shop Around for Rates 

Though you should not choose an insurance provider based on rates alone, it is certainly one of the considerations when making your choice. Instead of only getting a quote from one insurance provider, get several—just make sure you are comparing apples to apples and the policies offer the same type and amount of coverage. The cost of fleet insurance can vary widely depending on how many vehicles you have, their size and type, and what their purpose is. This is a highly specialized type of insurance so it’s likely you’ll find varying rates depending on the agency and whether or not they specialize in this type of coverage. 

Tip #7: Talk with Your Agent 

There may be additional ways to lower rates on your business auto insurance depending on which agency you are insured with. Talk with your agent, tell them about your needs and information on your business vehicles, and ask if there are more ways for you to lower the rates on your policy. For example, the agency may offer discounts for those businesses who have never filed a claim before—or who have not filed a claim within a certain timeframe

Choosing the Right Business Auto Insurance Provider 

Have you just started your business and need to insure your vehicles or are you considering changing the insurance provider you currently work with? Choosing the right business auto insurance provider is the best way to make sure you get the best rates while also getting proper coverage. To choose an agency, first ask other business owners which company they work with. You can ask them if they are happy with their coverage, if they have ever had a claim and how it was handled, and the customer service skills of their agent. 

From there, you can read online reviews of auto insurance companies and look for those that have a majority of five-star ratings. You can also do more research on each of the company’s websites to find out more about how long they’ve been in business, if they are locally owned and operated, and what types of policies they offer. You want to make sure they have the right coverages for your needs. 

Some types of coverage you may need to consider include: uninsured motorist coverage, third party exposure, legal expenses, emergency response plan, impaired driving, a seat belt policy, distracted driving, and physical damage. Federal and state law require you have to have liability insurance that covers property damage and bodily injury should your driver be at fault for an accident. The state your business is in will also have laws on the minimum amount of liability coverage you need to carry on your fleet. You can research this on your own or you can ask your agent about required minimums. Keep in mind that you can always carry more insurance than the minimum amount.

Once you have all the information you need, have talked with several providers who know what your insurance needs are and have given you comparable quotes, you can make a solid decision. Choosing the right insurance company and having an agent who has good customer service skills is the best way to keep your fleet safe and reduce costs to help your business’s bottom line.  

Adrianna Tori

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