If you use your car for business purposes or if you have business vehicles driven by you or other vehicles, you need to get commercial car insurance.
But commercial car insurance could get expensive as you are covered with liability policies that could cost as much as millions of dollars. To help you save costs, we’ll look at six ways by which you can get affordable insurance for your business cars.
1. Shop around before settling for an insurance company:
Take your time before settling for an insurance company. Don’t be fooled by ads that tell you a company provides the lowest commercial car insurance policies. Don’t take everything at face value. You can get your commercial auto insurance at a lower price than you think. Make your enquiries before picking an insurance company. A lot of businesses tend to go for one of the large insurance companies. But they can save much more money by opting for regional and local car insurance providers.
2. Check for discounts:
You will find discounts on commercial car insurance if you know where to look for them. You can get these discounts by insuring multiple vehicles with one policy, opting to receive documents online, paying yearly premiums at once, bundling your commercial car insurance with other policies, owning a vehicle with good anti-theft and safety features, becoming a member of an affiliate group or professional organization etc. Ask insurance providers for the kind of discounts that they provide.
3. Have a good credit score:
Your credit score affects your commercial car insurance quote. If you pay your bills on time, you will receive a lower commercial car insurance quote. Improve your credit, and you will get lower premiums. Examine your credit reports periodically to see how well you are doing.
4. Consider insurance costs before buying a business vehicle:
Commercial Insurance costs vary for each vehicle. You could check online for the average insurance cost of a vehicle before you purchase it for business purposes. This way, you get to save a lot of money in the long run. Vehicles that are deemed safer and less accident prone tend to have lower insurance costs than other vehicles.
5. Increase your deductibles:
Increasing your deductibles can help you get commercial car insurance at a more affordable rate. You get to save a lot of money by increasing your deductibles. But if you do this, you will need to pay more out of pocket if you make a claim.
6. Go for a usage-based plan:
If your business cars are not used that much, you can go for a usage-based plan. Some insurance companies provide usage-based commercial car insurance plans. When you go for these plans, your driving is tracked automatically by your insurance provider. You will receive discounts based on how well you drive, how much you drive and when you drive. There are also mileage-based programs that allow you to save money if you drive less than 10,000 miles every year. It is assumed that the less you drive, the less likely you are to be involved in an accident.
Conclusion
If you follow these six tips, you can get affordable car insurance for your business. Don’t be in haste. Take your time. You will save a lot of money by doing so. Review your commercial car insurance policies for add-ons that you don’t need. Meet your insurance providers and cut off these add-ons to get more affordable commercial car insurance. You can also check for comparisons online to help you make a choice.