understanding your insurance policy

Four Things to Know About Commercial Auto Insurance Costs

31 January 2022 by Tuĝba Van Den Heijkant

When you own a business and have vehicles driven for business purposes, personal insurance doesn't cut it. To protect yourself and your business, you need commercial auto insurance. Commercial auto insurance isn't just for big companies; it is for any business with a company vehicle that the owners or employees drive.  

Pay Attention to Employee's Driving Record 

If you need your employees to drive a company vehicle, it is essential to pay attention to their driving records. Your employee's driving record is going to impact your commercial insurance rates. Your provider will look up the record of each employee that you add to your policy.  

An employee with a poor driving record, full of accidents and tickets, is going to increase your premium. Too many employees with poor driving records can even put your policy at risk. An employee with a clean driving record, lacking accidents and tickets, is going to help bring down your premium.  

Always Add on Hired and Non-Owned Vehicle Coverage 

If you need employees to drive company-owned vehicles, there is a good chance that you may someday ask an employee to take on a task in a non-company-owned car, such as their own personal vehicle or even a rental vehicle. 

In that situation, you are putting yourself at risk if you don't have hired and non-owned vehicle coverage as part of your insurance policy. You are going to want to add this coverage to your insurance policy. It is a great form of coverage that will ensure that all of your employees are covered with the right insurance no matter what vehicle they are using to do work for you.  

Go for Higher Limits 

It may seem like you are saving money by going for low coverage limits on your commercial auto insurance policy. However, if you or an employee ever gets into an accident and issued, those low coverage limits can come back to haunt you. Low coverage limits don't represent the maximum in damages that someone can sue you for; they represent the maximum that your insurance company will pay on your behalf.  

Set Up the Right Payments 

Many insurance companies will offer discounts if you set up the correct type of payments with them. You can often get a discount for enrolling in paperless billing. You can get another discount for signing up for electronic funds transfers, so they don't have to pay a processing fee on your payments.  

You need a commercial auto insurance plan if you run a business and have employees driving your vehicles. A commercial insurance plan will protect you and your employees from a legal and financial standpoint. Ensure that you add hired and non-owned vehicle coverage to your policy; it is good to have that coverage if an employee ever conducts company business in a non-company-owned vehicle. Be sure to get limits that meet the bare minimum requirements and provide you with the coverage you need.  

Reach out to an insurance agency if you have questions about commercial auto insurance.

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