As an entrepreneur, you should not only focus on the increase of revenues but also on the decrease of overheads if you want to widen your profit margin. One of the expenses you can minimize is that of auto insurance coverage for your business cars. Here are a few tips for keeping your commercial auto insurance rates low:
Choose an Affordable Bundle
One of the best ways of managing auto insurance costs, irrespective of the car you are insuring, is to bundle it with other policies. Auto insurance companies, just like other businesses, are always looking for ways to attract more customers and also retain the existing ones. One of these ways involves offering discounts to those who give them more businesses. Therefore, you may be able to lower your commercial auto insurance rates by bundling it from the same insurer who also holds your personal auto insurance, your homeowner's insurance, and your general commercial liability coverage, among others.
Be Choosy With the Drivers You Hire and Retain
In any kind of auto insurance coverage, the driver's driving history plays a huge role in rate determination. This makes sense, since driver-related issues are the top causes of auto accidents, and auto accidents cost insurance companies lots of money. Therefore, you should be careful and avoid drivers who can raise your insurance rates. These are drivers with DUI (driving under the influence) histories, those who have picked up too many traffic tickets, or those who don't have valid commercial driving licenses, among other things.
Buy the Right Business Vehicles
The kinds of commercial vehicles you have for your business will also play a major role in your coverage rates. Ideally, you should opt for safe vehicles that aren't unnecessarily expensive. You should particularly stay away from trucks with known problematic histories, such as models that have been recalled for brake problems. You don't want your insurance company to fear that your trucks have an unusually high risk of accidents.
Ensure Your Fleet Record Is Up To Date
Lastly, you also need to ensure that your fleet record is up to date if you want to be paying reasonable rates for your commercial auto insurance coverage. For example, you need to update your policy when you decommission a truck; otherwise, you will be paying to cover a nonexistent truck.
In addition to the above tips, the same methods you would use to manage your personal auto insurance rates may also help. This includes things like looking for eligible discounts and paying your premiums in advance, among other things. Talk to an auto insurance agent from a company like Amco for further advice on minimizing commercial auto insurance rates.
