Is the premium car insurance for your commercial vehicle expiring soon? Do you want to find ways to make the best out of it before you need to renew it again? Keep reading to learn how you can get the most out of commercial car insurance.
Businesses use their commercial vehicles to advertise, transport clients, deliver goods, and more. No matter which function you use your vehicle in business, it’s always a good thing to have insurance. It can help you out in a pickle and cover part of the damages in case of accidents.
Below, we’ve got a list of things you can do to get the most out of your commercial car insurance during/after accidents. We’ve also included the factors that impact the cost of commercial car insurance. With it, we also explain how it impacts your rate.
Keep Your Driving Record Clean
Did you know that you can save up to 25% of your insurance premium if you maintain a clean driving record? A clean driving record will allow you to buy more coverage later on if you want it. Also, isn’t it better to stay out of auto accidents over-all?
You can even take defensive driving courses to improve your driving. If insurance companies know that you’re a better driver, they’re more likely to reward you. It’ll be unlikely that you’ll make insurance claims if you’re an excellent driver, after all.
Buy Extra Liability Insurance
In the US, the least requirements for commercial liability insurance differ by state. The law won’t often ask you to carry more than $100,000 liability coverage per person. However, medical expenses keep rising, and the minimum coverage may not be enough.
Buying more liability policies is a great way to make sure you get the most out of your car insurance.
Between paying lawyers or hospital bills out of pocket and maintaining a liability insurance policy, the latter is better. It’s a small sacrifice that you’ll be glad you chose to make in case of a serious accident.
Get a Higher Commercial Insurance Deductible
Do you feel that you can afford to pay more out of pocket for medical expenses and property damage? If you know you can do this for sure, get a higher insurance deductible. This is the amount you have to pay out of pocket in the event of an accident.
The lower your odds of getting into an accident, the higher you can raise your deductible. Choosing a higher deductible can lower your annual premium. This is a good tip for getting lower commercial car insurance, especially if you know you can drive well.
You’ll pay less for insurance, but remember that you’ll pay more out of pocket in case of an accident.
Shop Around and Look for Discounts
Before you decide on which policies or insurance quotes to get, don’t be afraid to shop around first. If you shop around instead of settling with the first insurance company, you’ll have more choices. Remember that insurance companies all offer different prices for their clients.
Shopping around won’t only give you the chance to pick the insurance policy that suits you best. It will also open you up to different deals and rates. Plus, you can always use what you know to get insurers to compete for your business and offer lower rates.
Compare Insurance Costs Before You Buy a Commercial Vehicle
Before you consider buying a car for business, you first need to know what you want. That includes determining what commercial car insurance policy you’ll take. If possible, try to pick 2-3 options for your commercial vehicle.
Even after you decide which car you like, research their insurance costs. You may learn that your first choice will cost more to insure, even though it’s cheaper. This research can show you that you’ll be spending the same amount on the car and insurance, anyway.
Keep your options open. Consider used cars too, since they can be much cheaper than brand new vehicles. Don’t forget that you can also ask for a quote from your current insurance company on the vehicles you’re comparing.
This will let you know what to expect when buying a commercial vehicle and insurance for it.
Consider Buying a Commercial Umbrella Insurance Policy
Commercial umbrella insurance is an extra layer of liability protection that covers other limits. It covers the same types of costs as business liability insurance. This includes medical expenses, damages, and attorney fees.
For example, let’s say your commercial vehicle caused a customer’s injury and you get sued for $150,000. You only have $100,000 in liability coverage. The commercial umbrella policy can make up for the $50,000 shortfall if it’s within the policy’s coverage limits.
However, you can’t get umbrella insurance for business as standalone coverage. Rather, it works with other types of liability coverage like general liability insurance. It’s a good add-on in case you face a lawsuit that commercial car insurance can’t cover in full.
Factors That Affect Your Commercial Car Insurance Cost
Whether you use business or employee ownership for a commercial vehicle, it helps to know what affects your insurance. The factors that influence your commercial vehicle insurance cost include:
- Driver experience
- Claim history
- Driving record
- Credit history
- Miles driven
- Fuel prices
- Medical costs
- Type of vehicle
Some insurance companies will also look into your sex, marital status, and age. This often occurs when they sell insurance to private car owners, but it can happen to commercial car owners, too. They’ll factor in the historical averages of accidents based on your demographic.
The policy you select and deductibles can also affect how much you pay for the policy. For example, you may pick an insurance policy with more coverage. When you do, you’ll end up paying more for sure.
Find the Best Commercial Car Insurance for You
Commercial car insurance need not be too expensive for you to invest in. Learning what you can do to lower it will help ease your financial burdens!
Do you want to learn more about automobile insurance and finances? Check out the rest of our posts to learn more!
