If you or your employee often drive for work-related duties, you should have a commercial auto insurance policy plan.
Consider this scenario: Your assistant is involved in an accident while driving their car to go and collect business documents. Who pays for their personal injuries and car damage? More importantly, who will reimburse the other parties if your assistant is at fault? Most personal car insurance plans do not compensate for any injuries or damages that occur when the policyholder is driving for commercial purposes.
Without commercial auto-insurance, all of the above expenses will come from your pocket or personal insurance, ultimately hiking your premium rates.
This policy covers you or your drivers on occasions like doing a business delivery or pickup, meeting prospective and existing clients, commuting from one workstation to the other, or other work-related circumstances.
Whether a small venture or a large firm, insuring drivers for your business has several benefits.
Reasons to Insure Your Commercial Drivers
To Save Money
Compensation for personal injuries, property, and punitive damages can run up to hundreds of thousands of dollars. This can put a dent in your finances if you choose to pay through your insurance company or from pocket.
Through a commercial car insurance policy, all of the above is taken care of by the provider as long as you have been paying your premiums.
Protecting Your Drivers when Working
Employees are an essential part of your business. Without their full input, different parts of your company will not run properly. Therefore, it is the employer’s duty to protect their well-being by insuring them while they are driving to further your business’s agendas.
This also gives your drivers peace of mind when working because they do not have to incur losses associated with an accident, especially those caused by a third party’s negligence.
Higher Limits and Additional Protection
Business car insurance costs more than personal auto insurance but the limits are also higher.
Damages resulting from a crash involving commercial vehicles can go far beyond repairs. There might be business equipment such as small machinery, catering equipment, or laptops onboard.
Commercial auto insurance includes liability protection, which cushions you and your business from hefty claims.
How to Insure Drivers for Your Business
Contrary to what many small business owners believe, finding a good commercial motor insurance policy is not so arduous a task. Once you settle on an ideal insurer, you can work out the details together and craft a personalized plan.
Some of the factors that will influence the cost of your commercial auto insurance are the following:
- Type of business you are running
- The number of drivers being insured
- The type and model of business cars
- Professional titles of employees operating the vehicles
- The total amount of time the drivers will be driving
Ways to Cut Down Commercial Auto Insurance Costs
Take Your Time When Shopping for an Insurer
Begin your search for a provider as early as possible. This gives you sufficient time to find several insurers and compare their policy offerings and costs.
Some insurance companies have options to personalize your plan fully and craft a policy that works for you. If you start looking late or fail to compare several providers, you might find yourself paying for insurance elements that you don’t need.
Even after finding a perfect match, ensure that you check other insurers once in a while to take advantage of any new offers. Do not be afraid to switch insurers if you are not getting value for your money.
Purchasing Economical Cars for Your Business
The type of car you drive ultimately influences your personal auto insurance premiums. This is true for commercial vehicles too.
Choose a relatively cheap car that does not fall in the luxurious category. Smaller engine sizes will also look favorable in the eyes of your insurance adjuster.
Enhancing Your Vehicle Security
When a commercial car insurance company thinks that your vehicles are easy to steal, they become a high risk to cover. This often translates to higher premiums. How can you change this to cut down insurance costs?
Enhance your car’s security by installing a tracker. Additionally, check if your car comes with an alarm and engine immobilizer already fitted.
Paying All the Fees at Once
If you are in the right financial position, get in the habit of paying insurance premiums in one go. What does this mean?
If you have been paying for your plan on a monthly basis, try switching to an annual plan. The overall amount paid through such arrangements is usually cheaper than the former.
Performing a Thorough Background Check on All Drivers
A driver’s background history will have an influence on insurance premiums. Things like traffic violations, tickets, wrecks, DUI charges, and points on their license can hike the cost of insurance.
Perform a thorough background check on all drivers and go with the safer options. If you or your drivers have accumulated points on your driver’s license or a DUI charge, a car accident attorney can help erase them from your records.
Consider the Telematics (Black Box) Insurance System
Telematics insurance plans provide unique and personalized policies based on your driving behavior. A small device is fitted in your car and records how you drive, such as acceleration, maneuvering corners, braking, and time spent behind the wheel for every trip.
After installing the device, encourage your employees to drive carefully and obey traffic laws. This will go a long way in cutting down insurance costs.
Do I Need to Insure Drivers if the Business Does Not Own Vehicles?
It is not uncommon for business owners to hire vehicles for commercial purposes. In other companies, workers drive their personal cars to run business-related errands. What happens if any one of them gets into a crash?
Typically, the driver’s personal auto insurance should reimburse any damages. But these are not normal circumstances because the driver was using their vehicle for commercial purposes during the accident.
If your business does not own some of the vehicles operated by your drivers, ensure that you purchase a hired and non-owned car insurance in addition to the commercial auto insurance policy.