What kills more people than AIDS? Car accidents.
Studies show 1.35 million people die from car accidents every year. By having the right type of commercial auto policy in place, you can protect your company should the worst happen.
If you don’t have an active commercial auto insurance policy, you can’t afford to wait to get the coverages you need. Luckily for you, we’ve created this guide to make getting auto insurance for a business easier than ever before. Instead of wondering if you have the coverages you need, let us help you be certain.
Read on to learn the ins and outs of getting the best insurance policies for business fleets.
Auto Insurance for a Business
First, it’s important to understand why auto insurance for a business is different than a personal auto policy. The biggest difference between personal and commercial policies is who owns the vehicle.
When you have commercial auto insurance, the company is listed as the owner of the vehicle. Whereas when you have a personal auto insurance policy, you can list yourself as the owner of the vehicle.
What Qualifies as a Fleet?
While you’re shopping for a commercial auto insurance policy, you’re going to run into the term, “fleet coverage”. For some insurance companies, fleet coverage refers to any policy that covers 5 or more vehicles. However, other insurance companies will classify 1 or 2 vehicles as being a fleet, as long as they’re used for business purposes.
Business Car Insurance Options
To get the best coverages, and the best prices, you should obtain quotes from multiple insurance providers. Instead of doing it all on your own, you can reach out to a company that provides insurance services, such as quote shopping and coverage comparison.
Take the time to compare quotes from large national insurers, as well as local providers. The more quotes you get, the easier it’ll be for you to pick the perfect policy for your company.
Cost Affecting Factors
Several factors will affect what you have to pay for a commercial policy. First, the driving records of every driver you’re insuring will have a big impact on your rates. Insurance companies are especially strict about drivers operating heavy-duty trucks.
If you have any drivers with multiple driving violations, you’ll probably wind up paying a higher insurance premium. To save money and reduce future risks, you should always hire safe, claims-free drivers.
Next, the number of vehicles you need to insure will also have an impact on your rates. Are you getting ready to purchase a new company vehicle?
Before you buy a new company car, get quotes for the different makes and models you’re considering. Commercial auto insurance costs can vary greatly depending on the particular type of vehicle you need to cover.
Moving on, the location of your company is another cost affecting factor. If you live somewhere that’s notorious for theft or accidents, you could see higher premiums.
Finally, whether or not you’ve had continuous coverage matters to insurance providers. For instance, did you use to have a commercial auto insurance policy, but you let the coverage lapse?
Unfortunately, insurance companies frown upon any lapse in coverage. However, if you’ve never needed a commercial auto policy before, they’ll be more lenient about you not having past coverage.
How to Get Car Insurance Quotes
Getting car insurance for a business can be fast and easy, as long as you have the right information handy.
Here’s a shortlist of the information you’ll need to provide:
- Business owner’s details
- Business details
- Current policy information
- Vehicle information
- Driver’s information
Are you the owner of your business? When you call for quotes, the insurance agent is going to ask you for your name, date of birth, address, and contact details.
Next, you’ll need to provide the name of your business, as well as a description of what your company does. Moving on, prepare to tell the insurance agent how many vehicles you need coverage for, along with providing the vehicles VINs.
No matter what, make sure you’re 100% honest when getting quotes to make sure you get an accurate price. For instance, the insurance agent might ask you to disclose whether or not you’ve had any past commercial auto claims (usually going back 3 years).
Finally, you’ll need the full names and driver’s license information for each driver you’re looking to insure.
Tips for Getting Insurance Discounts
Now let’s look at how to get auto insurance discounts for your company.
Here are a few of the fastest ways to save:
- Bundle policies
- Pay in full
- Enroll in autopay
- Hire experienced drivers
- Install safety devices
Another discount certain providers offer is a business experience discount. If you’ve been in business for more than 1 year, insurers may be willing to discount your premium.
When it comes to any type of insurance, you should cover the shop instead of the price shop. Instead of comparing quotes simply by their price, take the time to understand how the coverages differ.
Here are a few coverages you’ll see when you’re purchasing vehicle insurance for business needs:
- Bodily injury
- Property damage
- Uninsured motorist
- Medical payments
- Personal injury protection
If one of the quotes you receive has a price that seems too good to be true, be careful.
What Are Deductibles?
The deductibles are the portion you’re responsible for paying before the insurance coverage kicks in. You can choose to have a $0 deductible, or you can find policies with deductibles that are $1,000 or more.
When you choose a lower deductible, your premium will be higher. However, if you need to use the insurance, you can wind up saving thousands of dollars. Typically comprehensive and collision are the only 2 coverages that come with deductibles.
Protect Your Company
Congratulations! Now you know the ins and outs of how to get auto insurance for a business. Remember to take your time as you compare coverages from different providers.
Eventually, you’ll find the perfect policy that fits both your budget and your coverage needs. Are you ready to learn more ways to protect your company? Go ahead and explore the rest of this site today!