Operating a business means having vehicles on the road for deliveries, client meetings, or to transport equipment. Protecting these vehicles with Business Auto Insurance is not just wise but necessary. However, when obtaining a quote for auto insurance, you might be surprised by the price.
What causes some businesses to be charged a higher premium than others? The factors that affect auto insurance premiums are numerous, make sure you understand these factors in order to be able to get the right business vehicle insurance policy at the best rate.
Your Business Type and Industry
In calculating the insurance cost, companies often take into account the nature of the business in question. The maximum costs applied are for vehicles that are used in the transportation of hazardous substances or covering considerably longer distances, while the consulting firms with any minimal necessity to make for travel may have lower costs imposed. Therefore, the higher the risk, the higher the premium.
Number and Type of Vehicles
A single company car is substantially cheaper to insure than an entire fleet of trucks. The size, model, and function of any vehicle are all important factors. Expensive or heavy-duty vehicles cost more to fix and replace, resulting in higher business auto insurance premiums.
Driving Records of Your Employees
Insurance providers check the driving record of your employees who operate company vehicles. A clean record implies fewer risks, which helps in keeping an affordable auto insurance quote. In case any of your employees have had accidents or traffic violations in the past, expect your premiums to go up.
How Your Vehicles Are Used
Are your business vehicles used daily for long-haul trips or parked for most of the time? Frequent use gives rise to more wear and tear. The higher frequency of use increases the chances of accidents. If you have a business that is on the road 24/7, your insurers might charge you higher premiums.
Coverage Limits and Deductibles
Your small business auto insurance premium is affected by the level of protection you choose. Higher coverage limits provide more financial protection but often result in higher rates. On the other hand, choosing a higher deductible (the amount you pay before insurance kicks in) can reduce your monthly rates but result in higher out-of-pocket spending in the event of a claim.
Location and Operating Area
The location of the business and the place where the vehicle is used can also influence the premium. Companies operating in areas with more traffic or a high rate of claim events or theft will see a rise in the cost. Hence, a company operating in nice areas enjoys low insurance rates.
Previous Insurance Claims
Insurance companies examine your previous claims history. If your company has a history of frequent accidents or claims, your business vehicle insurance rate may indicate a higher risk. A clean claim history, on the other hand, can help you get better rates.
Ways to Lower Your Business Auto Insurance Costs
Some factors will remain out of your control, but it is within your power to bring down the cost of insurance. A responsible driver, a maintained vehicle, and a packaged policy can do this. Shopping around for the best business auto insurance rates ensures you’re getting the best deal without compromising coverage.
Get the Right Coverage with Savannah Insurance Advisors
Seeking affordable commercial vehicle insurance can seem overwhelming. Don’t stress too much. Savannah Insurance Advisors will ensure your business is covered with reliable, cost-effective, and tailored coverage. With one vehicle or one hundred, we make the process easy and smooth. Get your business auto insurance quote today, and protect your business with confidence!