Navigating The Road To Affordable Commercial Auto Insurance

Commercial auto insurance is a type of insurance policy that covers vehicles used for business purposes. This includes cars, trucks, and vans. It is important to note that commercial auto insurance is different from personal auto insurance, as it provides coverage for vehicles used primarily for business operations.

The cost of commercial auto insurance can vary depending on various factors, such as the type of vehicle, the number of vehicles insured, the driving history of employees, and the location of the business. On average, commercial auto insurance costs around $147 per month, but it can be higher for businesses with higher risks or more valuable vehicles.

To get cheap commercial auto insurance, it is recommended to maintain a clean driving record, adjust coverage limits and deductibles, and take advantage of any available discounts. Some insurance providers offer discounts for safe driving records, experience, full payment of premiums, and bundling multiple insurance policies.

When choosing a commercial auto insurance provider, it is essential to consider the company's reputation, financial strength, and customer satisfaction ratings. It is also crucial to ensure that the policy provides adequate coverage for the specific needs of your business.

Maintain a clean driving record

Maintaining a clean driving record is one of the most effective ways to keep your commercial auto insurance costs low. A clean driving record indicates that you are a safe driver, which translates to a lower risk for insurance companies. This, in turn, results in reduced insurance costs. Conversely, a poor driving record with multiple traffic violations or accidents will lead to higher insurance premiums as you will be deemed a high-risk driver.

So, what constitutes a clean driving record? Essentially, it means having minimal or no violations or accidents on your record. While different insurers may have slightly varying definitions, even minor infractions can result in higher insurance rates. Generally, if you have one or two minor moving violations over a period of three years or more, your record may still be considered clean by some insurance companies.

To ensure a clean driving record, it is important to practice safe and responsible driving. Respect your fellow road users and abide by the traffic rules and regulations. Avoid reckless or aggressive driving, especially when you are in a hurry. Common traffic violations such as signal jumping, speeding, or driving under the influence can result in hefty fines and negatively impact your driving record. Late payment of fines or failing to appear in court can also leave a black mark on your driving record.

It is also a good idea to periodically check your driving record to ensure there are no errors. Contact your local Department of Motor Vehicles (DMV) to obtain a copy of your driving record, which may come with a small fee. Alternatively, if you already have car insurance, you can request a copy of your motor vehicle summary from your insurance carrier, which they may provide free of charge. Review your driving record carefully and report any discrepancies immediately to the DMV.

By maintaining a clean driving record, you can not only keep your commercial auto insurance costs low but also benefit from safe-driver discounts offered by insurance companies. Additionally, a clean driving record can help when making insurance claims, as it demonstrates your commitment to safe driving behaviour.

Adjust coverage limits and deductibles

Adjusting your coverage limits and deductibles is a great way to save money on your commercial auto insurance premium.

Firstly, you can decrease your combined single limit (CSL) from $300,000 to $100,000, which lowers your coverage for multi-person accidents from $300,000 to $100,000. This will result in a lower premium as you are reducing the insurance company's potential liability.

Another way to save on your premium is to increase your physical damage deductible. A deductible is the amount you pay out of pocket before your insurance coverage kicks in. By increasing your deductible, you are taking on more of the financial burden in the event of an accident, which reduces the risk for the insurance company and results in a lower premium. For example, you could raise your deductibles from $500 to $1,000. Just remember that you'll have to pay more out of pocket if you have a claim, so be sure you're comfortable with the amounts you select.

It's important to note that while adjusting your coverage limits and deductibles can save you money, it also means you will have less financial protection in the event of an accident. Therefore, you need to ensure that you are comfortable with the level of risk you are taking on and that you understand the coverage you choose before starting your policy.

Additionally, when choosing your coverage limits, make sure you meet your state's requirements for auto insurance. Most states require commercial auto insurance for businesses that own vehicles, and you may need a certain amount of property damage liability and personal injury protection.

Choose a company with a good reputation

When choosing a company with a good reputation for commercial auto insurance, it is important to consider a few key factors. Firstly, look for a company with a strong industry reputation and positive customer reviews. This indicates that the company has transparent business practices and is committed to customer satisfaction. You can check a company's rating with organisations like the Better Business Bureau (BBB) and J.D. Power. Additionally, it is beneficial to select a company with a strong financial standing, as this indicates their ability to fulfil their obligations and claims. Ratings from agencies like AM Best, Moody's and S&P can help evaluate a company's financial strength.

It is also advisable to opt for a company that offers a wide range of coverage options and allows for customisation of policies to suit your specific business needs. For instance, in addition to standard liability coverage, some companies offer extras like legal fee reimbursement, roadside assistance, and coverage for specific industries or vehicle types. Furthermore, consider a company that provides multiple discounts to help lower your premiums. Common discounts include those for bundling policies, having a clean driving record, business experience, and possessing a Commercial Driver's License (CDL).

Lastly, choose a company that is easily accessible and provides excellent customer service. This includes having a user-friendly website, knowledgeable representatives, and efficient claims processing. Some companies also offer convenient features like online policy management and the ability to obtain quotes and purchase policies online.

Compare quotes from multiple providers

Comparing quotes from multiple providers is an effective way to secure cheap commercial auto insurance. This process can help you find the best deal, as rates vary across insurers. Here are some steps and tips to guide you through the process:

Determine Your Needs and Budget

First, decide on the coverage you need. While most states have minimum coverage requirements, consider your vehicle's age, mileage, and features, which may necessitate additional coverage. For instance, a newer or leased vehicle might require comprehensive and collision coverage. Additionally, determine your budget for the insurance. Knowing your budget and coverage needs upfront will help streamline the comparison process.

Gather Relevant Information

Before requesting quotes, ensure you have the necessary information on hand. This includes personal details such as your age, gender, address, and driving history, as well as vehicle information like the make, model, and vehicle identification number (VIN). Having this information readily available will make the quote process smoother.

Research and Compare Insurers

Use online tools and websites to compare quotes from multiple insurers. Websites like Compare.com, Insurify, and Jerry allow you to compare quotes from various companies side by side. Remember to compare quotes for the same types and levels of coverage to ensure accuracy. Additionally, research the insurers themselves by reviewing their customer service, claims handling, overall reputation, and available discounts.

Select the Best Quote

After comparing quotes and researching the insurers, it's time to choose the provider that best meets your needs and budget. Review the quotes and select the one that offers the coverage you require at a price you can afford. Then, proceed with purchasing the policy.

Regularly Review and Compare Quotes

Don't forget to revisit your insurance options periodically. When your policy comes up for renewal, take the time to compare quotes again. This ensures that you're still getting the best deal and allows you to explore new options that may have become available.

By following these steps and comparing quotes from multiple providers, you can make an informed decision about your commercial auto insurance and potentially save money on your premiums.

Ask about discounts

Discounts are one of the easiest ways to get cheap commercial auto insurance. Here are some of the most common discounts offered by insurance providers:

Clean Driving Record Discount

Typically, insurers will lower the base cost of the policy for a clean driving record, but they may also offer discounts for hitting certain milestones, such as "no accidents for 3 years". A long-standing record of safe driving is one of the top factors in lowering insurance costs.

Experience Discounts

Some insurance providers will offer a discount to experienced commercial drivers. This may include drivers who've had their commercial driver's license for a certain amount of time or have had multiple years of driving experience.

Full Payment Discount

Often, insurers will give a small discount to policyholders who pay off their annual premium balance in full at the beginning of the coverage period, rather than paying monthly.

Bundled Policy Discount

Many insurance providers incentivize businesses to purchase more of their business insurance policies by offering a discount for "bundling" multiple insurance policies. Sometimes these are referred to as multi-line discounts.

Auto Payment Discount

Some insurers will offer small discounts for setting up automatic payments each month, ensuring they get paid regularly.

Safety Feature Discounts

Many providers like to incentivize their policyholders to drive safely and take various safety precautions. Vehicles with certain safety features may trigger discounts with insurers.

Professional Association Discounts

Some insurers will give discounts to policyholders who are part of various organizations. It's always worth asking the insurance company which organizations they may offer discounts for.

Frequently asked questions