Auto insurance for your business auto fleet is an important and unavoidable expense. It may seem that the premiums go up every year and there is nothing that can be done. However, there are ways to reduce the bill. This article will discuss several strategies to reduce your monthly auto insurance premiums and increase your bottom line.Your vehicles would be idle without employees to drive them. Insurance companies can and do run background checks on your drivers to see what violations they have. An underwriter seeing speeding tickets, accidents and impaired driving violations will likely increase your premium due to the higher risk presented.
Running your own motor vehicle reports before hiring an employee or adding a driver to your policy can save you time and will also signal to the insurance company that you take safety seriously.
Another signal to the insurance company that you are a partner in keeping losses low is the presence of a safety and maintenance plan for your auto fleet. Underwriters like to see that vehicles are being maintained, inspected, and serviced at regular intervals. Some carriers offer discounts if these programs are in place.
One way to reduce costs for the insurance company and keep you from experiencing large premium increases is to retain more of the loss. Consider higher deductibles to limit the severity of auto claims. This is especially helpful for expensive or new vehicles.
Ask your agent for the premium differences at different deductible levels. Also consider dropping physical damage coverage (comprehensive & collision) on older vehicles. The less a vehicle is worth the less the payment would be if it was totaled. At a certain point, self-insuring for the physical damage makes sound business sense.
Many carriers offer premium discounts if the full year is paid at once. You can avoid installment charges and possible late or missed payments by taking care of your whole premium at the beginning of the year.
Consider running a return on investment calculation to see if paying in full and avoiding installment charges makes sense for your business. Even switching to quarterly or semi-annual can help you avoid installment charges.
A final way to save money on your business auto insurance is to shop around. If you haven't checked on different companies prices in the last few years you may be paying too much. If you have an independent agent ask them about what other carriers they represent.
Don't be afraid to contact other agencies as well to see what they have to offer. Insurance agents eager for your business can use influence with underwriters to beat another agent's price. The result is lower premiums for you and your business.
When running a business with vehicles auto insurance is an important and unavoidable expense. Consider the costs and benefits of each tip to see what is right for your business.
Keeping costs low now can pay dividends going forward as some insurance companies take a percentage increase each year. Following the tips in this article to save money on your auto insurance premiums can be time well spent.