Effective Ways to Save Money on Commercial Auto Insurance

Due to the increased demand for remote and delivery services, companies are being forced to adapt or risk falling behind the competition. If you are adding delivery services to your business, commercial auto insurance protects you while you’re on the road.

If you have used a fleet of commercial vehicles for an extended period, you are aware that commercial auto insurance rates often fluctuate. However, here are a few ways to control your commercial auto insurance costs.

    • Common Variables

      There are a lot of factors to consider while finalizing your commercial auto insurance premiums. If you are operating a high-risk business, your premiums will be higher. Your commercial auto insurance costs may be higher if you are driving primarily in high-traffic areas compared to rural areas. The size of your vehicles and their usage will also impact your premiums.

      If you are transporting a lot of fragile cargo, you can add physical damage coverage to protect those items if something goes wrong. Your driving history is also a significant factor. If you have been involved in multiple accidents over the last few years, your rates will increase. Once you have established a track record of safe driving, your auto rates will decrease. Other variables that may impact your premium costs include auto repair costs, previous lawsuits, and the amount of coverage you need.

    • Accident Classification

      The severity of previous crashes also impacts your commercial auto insurance cost. While you may know that the more claims you file, the more your premium will rise, you may not be aware that the size of those claims can also impact premiums. You may be considered high risk if you file too many claims in a short period.

    • Potential Discounts

      The easiest way to qualify for discounts is by maintaining a clean driving record. Paying your policy in full and increasing your deductible can also help lower your rates. You may also obtain a discount by acquiring a commercial driver’s license. Insurers may also offer a discount if you’ve had continuous coverage over an extended period.

    • Managing Risks

      Managing risks helps keep you safe on the road. You must purchase safe vehicles and educate your drivers on the benefits of safe driving. Consider conducting a thorough background check before hiring a driver. It’s good to organize a driver safety seminar every few months to inform your employees about new trends. The seminars can also help your drivers learn how to report a loss after a crash. Also, monitor your driver’s performance regularly through incentives and other creative measures to ensure they comply with safe driving measures.

    • Consider Your Workers’ Compensation Coverage

      Consider looking over your workers’ compensation package. Research shows that many workers’ compensation injury claims involve auto accidents. If your employees file a lot of workers’ compensation claims, the cost of your commercial auto insurance premiums will rise.

Consult with Kneller Insurance Agency

Commercial auto insurance rates generally fluctuate based on the driving behavior of you and your employees. The easiest way to keep your rates low is by practicing safe driving techniques. If you have any questions about commercial auto insurance policy, contact our experts at Kneller Insurance Agency today. We will assist you in finding the right coverage for your business vehicles.

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