If you're a business owner, you'll want to save as much money on your commercial policy as you do with your personal policy. After all, minimizing your cost and overhead is just part of running a business. So, how do auto insurance companies rate your policy and how can you save money on it? Is it the same as your personal auto insurance? You might be surprised to find out that it is. Auto insurance companies take the same discount concepts and apply them in a way that is tailored to the type of policy you have. Read on to find out more.
How are my vehicles rated?
Commercial policies have a little more that goes into the rating process than a typical personal policy. The company will take into account:
- What type of vehicles they will be insuring, and what kind of coverage limits you're asking for
- What type of business operations you'll be performing with the vehicles
- Information about things you are hauling and also information about the trailers you use
- Your loss run information (claims history)
- How long you've been in business
Each of these points is used to determine how to rate the policy. Rental cars, for instance, have a different type of liability exposure than service vehicles.
Types of Discounts
Some commercial insurance carriers will have discounts that are unique to their company, so don't be shy about asking for information about them. There are, however, a few that are pretty consistent.
- Experienced Business: Depending on the company, you can receive a percentage based discount if you've been in business for a certain amount of time. It's typically around a few years, but varies.
- Commercially Licensed Drivers: Different from just having your drivers license, companies that employ drivers that have a commercial drivers license will receive a pretty hefty discount.
- Package Discount: If you live in a state where you can get your general liability, business insurance, and commercial auto insurance policies all under one roof, then you're also eligible for a discount.
- Deductibles: Just like with any other type of insurance policy, raising your deductible will lower your premium. This is a good idea if you know your drivers and have a clean claims history.
- Pay in full: You might be surprised to find out that companies offer a significant discount for policies that are paid in full every term. This can usually shave off amounts in the triple digits. A rule of thumb: if you can afford it, always go this route.
- Pay with EFT: If you can't afford to pay in full, use the electronic funds transfer payment method—It will help shave off a bit of the premium.
When it comes to saving money on commercial auto policies, just approach it like you would your own personal policy, and don't forget to ask about what other discounts the company offers.Share