Commercial Auto Insurance Policies
Auto insurance is one of the most important types of insurance any business which relies on company vehicles needs. Offering protection against liability as well as repairing or replacing a vehicle that gets damaged, it offers numerous benefits to a business while providing peace of mind. However, before purchasing commercial auto insurance there are several questions that should be asked.
One of the most important questions to discuss with an insurance agent is the number of vehicles and drivers that will be insured. Larger businesses often opt for fleet insurance, which can be less expensive than individual policies on each vehicle. Factors that can play into whether a business is eligible for fleet insurance include the number of vehicles a business owns and the vehicle class.
It's also important to understand exactly how the policy defines commercial auto use. Since some businesses allow employees to drive company vehicles home at night, there must be a clear understanding of when the vehicle will be insured under the commercial policy. Does coverage extend 24/7, or only during normal business hours? Make sure any questions are answered prior to buying the policy. Otherwise, there may be a risk of being uninsured in the event of an accident.
One advantage of commercial auto insurance is the many ways premium costs can be lowered. Most insurance agencies are very eager to do business with commercial clients, so they are always willing to offer numerous discounts. Some of the most common discounts offered to businesses seeking auto insurance include business location, driver records, type of vehicle and safety or anti-theft devices on the vehicles. Businesses located in safer parts of a town or city often get lower premiums, as do ones that hire drivers with excellent driving records. Purchasing vehicles that are five-star safety rated, such as mid-size domestic sedans, also lead to lower premiums. Devices such as alarms, GPS tracking systems, air bags and more can also lower premiums while increasing the safety of drivers and passengers. By taking all this into consideration, purchasing commercial insurance for company vehicles should be a straightforward process.