How to Find Affordable Commercial Car Insurance

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Here's what you need to know...
  • You can shop around to find cheap business car insurance.
  • Hiring safe drivers lowers your risk and your insurance cost.
  • Always make sure to take advantage of any available discounts.
  • Don’t try to merge your personal policy with your business policy.
  • Watch out for fraudulent companies.
  • Do your homework.

Getting coverage for your business vehicles is important, but it can eat a big chunk of your monthly budget, depending on what your business is. If you can find ways to save money on insurance, you will have more money to spend in other much-needed areas.

You can find cheap business car insurance by following three easy steps.

  1.  Shop around.
  2. Hire safe drivers.
  3. Take advantage of any discounts available.

Instantly compare cheap business car insurance rates immediately by entering your ZIP code into the FREE quote box!

There are different things that go into figuring out how much your business car insurance will cost. Some factors are in your control while others are not. The key to saving money is to focus on the factors that are in your control.

Shop Around

Lets be honest, not all commercial car insurance companies are created equal. It is important, then, to shop around when looking for cheap commercial rates.

Some business auto insurance providers offer more coverage options, some specialize in certain types of commercial vehicles, and others are able to offer lower rates.

The Internet makes it easy to do a quick price comparison for your commercial auto policy.

Many places even allow you to enter the needed information in one spot, resulting in rate quotes from more than one provider. You can take the top two or three companies that offer the cheapest rates and do a more thorough research on them.

If you have a large business and have multiple vehicles, it may be better to check out commercial insurance companies on an individual basis. Larger businesses often have more complicated needs when it comes to car insurance.

Because of this, it is usually a good idea to personally speak with an agent or a representative of the company before purchasing a policy.

Business, car insurance providers are always competing with each other, and this bodes well for consumers. It helps you find cheaper rates.

So, if you are a new business, search around and compare multiple companies and their rates. Even if you are an established business owner, though, it can’t hurt to do some shopping and see if you can find a cheaper rate.

Hire Safe Drivers

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Insurance companies determine your rate based largely on risk. So, a big factor to consider is how safe the drivers are. This information may be based off of statistics or off of facts.

When it comes to teenage drivers, much of the risk assessed for them comes from statistics of other teen drivers. Obviously, teenagers are new to driving and do not have much of a personal driving history.

Statistics show that drivers under the age of 20 get into accidents about four times as much as drivers of older ages, according to the Centers for Disease Control and Prevention.

This causes car insurance rates for drivers aged 16 to 19 to be much higher. Over time, with more driving experience, individual driving records will be more of a rate determinant.

As a business owner, you will be able to find cheaper, business auto insurance rates if you don’t hire teenagers for driving positions. Sometimes this may be unavoidable, as many popular jobs for teenagers require them to be in delivery type roles.

If you are hiring older drivers, ask about their driving history or spend the money to research their records yourself.

If someone has been in multiple at-fault car crashes or has received numerous traffic tickets for speeding or other violations, it would be in your best interest to move on to the next person.

If you own a business that deals with commercial trucking, try to hire drivers that have their commercial driver’s license. Many insurance companies will reward you with cheaper rates if your drivers have more experience on the road.

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Take Advantage of Discounts

One way to find cheap, business car insurance is to ask about discounts that the company may offer. Discounts are offered for certain things that help decrease the risk of accidents and add to the safety of the driver.

As was mentioned earlier, some companies will offer a discount for drivers who have their commercial driver’s license.

Keep in mind that according to the United States Department of Transportation, some commercial vehicles can only be driven by drivers with their CDL. Information about obtaining this license can be found on the USDT’s website.

The amount of time that you have been in business can help save you money.

Some companies offer a discount for experienced businesses. Experienced businesses are those which  have three or more years of experience. Some may also offer a discount for new businesses in order to help save them money.

If you have a personal auto insurance policy with a company, adding a commercial auto policy to it will help save you money. You also will receive a discount if you combine your commercial auto policy with a business owner’s or general liability policy.

Other Ways to Save Money

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Even if you are unable to find cheap insurance for your business vehicles, there are other ways that you can save some money on your commercial policy. Each one may not save you a ton of money but the savings do add up and definitely help with your bottom line.

As with any insurance policy, personal or commercial, increasing your deductibles will help to lower your policy.

Take a close look at your finances and determine what you would comfortably be able to pay for a deductible. It’s important to know this in the event that there is an accident and/or physical damage is done to your vehicles. Raise your deductible amount as much as you are able to.

How often you pay your auto policy will affect the amount that you owe. Some businesses choose to pay their premium on a monthly basis because it helps them budget their money better. If you are able to pay it less frequently, however, you will save money.

Paying your premium annually is the cheapest way to go, as you can often save up to 15%.

How you pay your premium can also help your bottom line.

If you pay by check, there is sometimes a processing fee. The insurance companies are not guaranteed payment by a certain time if they depend on you to send it in.

Some companies will charge you a little less if you sign up for Electric Funds Transfer. This takes payments out of your account on a pre-determined date every month, which will also save you time.

Personal vs. Business Auto Insurance

You might think that a good way to save money on insurance is to forgo business car insurance altogether, banking solely on your personal policy.

This is not a smart idea.

Even if you have a very small company and use the same car for both business and personal use, many insurance companies will not cover damage caused by something related to your work.

Further, commercial vehicles such as trucks and snowplows are definitely not covered by your personal policy. The Insurance Information Institute can help answer more questions as to whether you need a business policy or not.

Be Aware of Cheap Policies

If you shop around and find a cheap policy that seems too good to be true, be cautious. It may be a legitimate policy that you have been fortunate to find, but it is always wise to research the insurance company before deciding to use it.

Doing your homework will ensure that the company is both trustworthy and worth the extra savings.

The researchers at the Coalition Against Insurance Fraud report that some so-called insurance companies offer fake policies.

If an insurance company is fraudulent, then when you file a claim on the policy, the company is either impossible to get a hold of or it refuses to pay for the damages. Other times, they might try roping you in by offering very cheap rates.

To make sure that you are not a victim of fraudulent insurance companies, you should:

  1. First, contact your state insurance department and make sure that the company is licensed in your state and registered to sell commercial car insurance. In doing so, you just might find that the company is fraudulent.
  2. Make sure that the company is financially solid. Use companies like A.M. Best to find out what the financial rating of an insurance provider is. If it has a rating of B or worse, it is probably better to pay a higher rate for a company with greater stability.
  3. Do some research to find out how the company rates in terms of customer service and the claims process. You can ask your insurance department if there have been any complaints against the company. You can also check out its ratings on J.D. Power and Associates or through your local Better Business Bureau.

Saving money is a top priority for any business owner. You can indeed find cheap car insurance but always be sure to do your homework before making final decisions. Take advantage of these tips to save more money on your company’s insurance expenses.

Start your car insurance rate comparison right now by placing your ZIP code in the FREE quote area!

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