Things to Consider When Getting Auto Insurance

March 29, 2017

What affects the rates of your commercial vehicle insurance?

Commercial vehicle insurance rates are major considerations  when owning and driving vehicles for your business needs. Finding average insurance rates is not an easy job because there are so many factors that may affect the cost of the coverage. The premium costs for coverage varies with the type of vehicle your company owns and the risks involved when using it. Finding the best insurance broker or agent will definitely help you get the commercial vehicle insurance rates that are relevant to your business needs at an amount  that you can afford. Agents can shop for the best rates, get discounts, and combine multiple business insurance coverage in order to simplify the process and save you more money.

Factors that affects commercial vehicle insurance rates:

Type of vehicle and its value: (Car, truck, van, taxi, limo or even motorcycle). Most business owners consider getting premium rates and coverage depending on the size and the use of the vehicle. Generally larger vehicles with good safety ratings have lower premiums than smaller vehicles with otherwise similar ratings. However, cars with larger engines relative to body size tend to have higher rates – for instance, insurance for a sports car with a V8 engine costs much more than a small car with a V4 engine.

Driving records of all drivers: Insurance providers do a background check for every individual driver which will provide them with their driving history and activity. If the driving record is bad, insurance companies reserve the right to withhold insurance coverage entirely.  They have specific underwriting requirements, particularly for those who will be driving heavy duty trucks. Drivers with several driving violations may cost your company higher premium rates. It is a recommended and good practice to hire qualified, skilled and claims-free drivers to lower your rates and reduce risks.

Use of vehicle: The driving location and distance creates an impact on your commercial auto or commercial truck insurance premium costs. The more often the vehicle is used and the more miles  that your vehicle travels increases the risks of being involved in an accident. Insurance companies take this into account when calculating insurance rates.

Insurance policy structure: Buying commercial insurance policies separately will definitely make you pay more compared to insuring all your commercial vehicles on one package policy.  Bundling them together for a multi-policy discount will reduce the cost of your premiums. Some insurance companies often provide discounted rates depending on the size of your fleet. Ask your insurance agent about it and they will be glad to help you obtain the insurance bundle your company needs.

General assessment to match your budget and save money:

A local independent insurance agent, like B Insured Agency, Inc., who specialize in business insurance can help you find a commercial auto insurance policy at a great rate.