Owning and managing a fleet of company vehicles is not easy. At any one time, you may have three or more vehicles out in the field, each vehicle requires maintenance and repair and there is the issue of the drivers’ welfare. All these can be stressful not to mention costly. There are ways through which you can save money on your business car insurance. It might not reduce the stress but you can reduce the pressure of costs:
There are various discounts for customers that bring a lot of business to the insurer. More than one car is a lot of business. The following are some of the unique discounts you can get as a commercial fleet owner:
- Businesses that have been operational for three years or more can get an experienced business discount. Experience shows that they have learnt proper fleet management systems and therefore are lower risk customers.
- Drivers with commercial drivers licensed can also get a discount.
- Package discounts of businesses holding other policies with the same insurer.
- Increasing deductibles
The deductible is the amount of money you are supposed to pay out-of-pocket in case the vehicle sustains damage during an accident. The higher the deductible amount, then the lower will be the cost of coverage. Make sure to choose a higher deductible for cheap auto insurance prices only if you can afford to pay it comfortably at anytime because accidents are very unpredictable.
- Pay in full
You can save as much as 15% off the cost by paying up the entire premium upfront. It shows commitment to the insurance company as which it rewards.
- Multi policy discounts
If you have other vehicles, even if they are not commercial, you can insure them with the same carrier to get a multi policy discount. The discount is often towards the personal auto insurance for the non-commercial vehicle.
- Good drivers
It is essential to hire drivers with good driving records. The driving records of the drivers expected to use the vehicle is one of the factors that determines the premium for commercial auto insurance. Employees with a solid driving record reduce the risk of accidents or damage. As mentioned earlier, auto insurers have incentives to encourage business owners to hire drivers with commercial drivers’ licenses. You can also enjoy lower maintenance costs of the vehicle fleet.
- Payment options
Paying through electronic fund transfer or ETF can also offer savings on administration fees. The insurance premium comes directly from the business bank account automatically. This helps to reduce the risk of making late payments.
- Choose wisely
The best way to find cheap commercial auto insurance is through comparing different providers. You should get and compare at least three quotes from different insurance providers. There are often large variations between insurance providers and this is the only to find out what else is on offer in the insurance market. The cheapest overall cost is not always the best policy, what to look for is value for money. Are you covered for what you need at a price that you can afford?
Pauline Newman is an auto insurer specializing in commercial auto insurance. Visit her blog for more tips cheap auto insurance prices.