Like personal auto insurance policies, commercial auto insurance rates are subject to a variety of factors. The premiums for this insurance vary widely depending on your location, the size of your business and more. Taking a look at what is affecting your commercial auto insurance rates can help you understand your premiums and find ways to save money.
Size of the Business
The size of the business not only refers to the number of vehicles you have insured, but also the number of employees driving those vehicles. If you have multiple employees sharing multiple vehicles, you may pay more than if you had a single employee assigned to one vehicle. This is because the more drivers you have, the more likely there is to be an accident. Of course, having more vehicles also means having more insurance, which results in higher premiums.
Coverage Limits
Not all commercial auto insurance policies are created equal. The higher coverage limits you have, the more you may pay for commercial car insurance. This doesn’t mean that you should cut down on important coverage, however. Speak with an insurance agent to help evaluate your business’ risks and calculate how much coverage you need.
Distance Traveled
Your business’ location and how far your commercial vehicles will be traveling can affect the cost of your commercial auto insurance premiums, as well. The further you travel, the more you may pay for commercial auto insurance. Interstate business travel may cost more to insure than intrastate travel, for example.
Who Is Insured?
On a basic commercial auto insurance policy, those who you allow to operate the vehicles should be covered. Your drivers can have an affect on your rates, however. If you have employees listed on your policy, the insurer may consider the employees’ driving records and credit scores into your premiums. This is why it is important to vet potential drivers and trust only those with a clean record. This can help avoid avoidable wrecks in the future as well as save you money on commercial auto insurance.
No matter who is insured or where your business operates, it is crucial to speak with an insurance agent about areas you may save money on your commercial auto insurance policy. Ask about discounts and take steps to keep your commercial vehicles safe, such as choosing vehicles with high safety ratings and keeping them in a covered area when they are not in use.
Tags : commercial, auto, insurance, employee, vehicles
 November 30 at 5:09pm · Share
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