Commercial vehicle insurance is designed for businesses that use vehicles for work purposes. Whether you have a delivery truck, a service van, or a common SUV, this type of insurance can help cover the costs if your vehicle gets into an accident or receives damage. It’s crucial for any business that relies on vehicles because it can help pay for repairs, medical bills, and even legal fees.
Though auto coverage is essential, most workers or contractors look for ways to save on their commercial auto insurance. Luckily, insurance providers typically have plenty of discounts that can keep auto insurance affordable for those who need it.
What is commercial auto insurance?
Commercial auto insurance is a special type of coverage designed for vehicles used for business purposes. This can include anything from company cars and delivery trucks to service vans and construction vehicles. Unlike personal auto insurance, which is meant for everyday driving (like grocery shopping or commuting), commercial auto insurance can cover vehicles used in your business operations.
If you get into an accident driving a business vehicle but only have personal auto insurance, you likely won’t be covered. This is not only because personal insurance only covers cars for personal use, but because some states require drivers to purchase commercial auto insurance for business ventures.
Commercial auto policies typically offer a deeper level of coverage, like including a higher liability amount for when you are responsible for a third party’s medical expenses and property damage. Without it, your business could face hefty expenses that might be hard to cover, potentially leading to significant financial strain or even legal issues. In short, commercial auto insurance helps keep your business running smoothly and can help pay for covered expenses related to your vehicles.
Types of discounts available through IIA
You’ve determined that buying commercial auto insurance is a must for you and your business, but the options are more expensive than you considered. Fortunately, business owners and contractors may be able to find discounts that’ll reduce their insurance expenses. Infinity Insurance Agency, Inc. offers many different discounts including one for paying your premium entirely or having multiple vehicles on your insurance policy.
Paid-in-full discount
Oftentimes, drivers can make insurance payments every month, just like paying rent or a credit card. If you can pay your full premium upfront, your insurance company may provide you with a significant discount.
Multi-vehicle discount
If your business has more than one vehicle, you might be able to get a discount on your premium. This discount is available when you insure multiple vehicles under one policy. It is not only convenient, but it can also save you money compared to having separate policies for each vehicle.
Good driver discounts
Keeping a clean driving record is important for getting less expensive commercial auto insurance. This discount is offered to business owners, workers, or contractors who haven’t had accidents or traffic violations. This discount rewards safe driving and helps keep your insurance costs lower.
Business experience discount
Your business experience can also help lower your insurance costs. If your business has been around for a while and has a good track record, you might qualify for this discount. Having ample business experience shows your insurance company that you’re reliable and less risky to insure.
Multi-policy discounts
If you have other types of insurance policies with the same company, like a commercial general liability (CGL) policy, you might be able to get this discount. The CGL policy can help cover various risks that small businesses face. This policy can cover third-party accidents in a business facility, like bodily injury or property damage.
Bundling a CGL policy alongside a commercial auto insurance one can save you money and simplify your insurance needs.
Proof of prior insurance discount
Let’s say this is your first business or start-up, and you don’t have enough business proof for a business experience discount. Showing that you’ve had insurance coverage in the past can also help prove you are less risky to insure and maybe reduce your premium. This discount may be available to those who've maintained continuous coverage over the years without any gaps.
How to qualify for discounts
Many drivers searching for commercial auto insurance can qualify for discounts, but how? To get the best discounts on your potential policy, you can follow these tips:
- Review insurance policies regularly: Make sure you review your insurance policies regularly to ensure you’re getting all the discounts you qualify for.
- Implement safety measures: Improving vehicle and driver safety can help lower your insurance costs. Consider adding safety features like backup cameras or anti-theft devices.
- Consider driver training and education: If you’re a business owner, providing regular training sessions for your drivers can also help you save money. Educated drivers are less likely to get into accidents, which can lead to lower insurance rates.
- Leverage technology: Use technology like telematics and GPS tracking to monitor and improve driving habits. These tools can help you track how your vehicles are being used like speed and breaking patterns, which encourage safer driving. Using telematics can also help with a user-based coverage policy, which can help business owners save money through real-time data and driver history.
- Working with your insurance provider: Don’t be afraid to call your provider about potential discounts and what you qualify for. An insurance agent can help you find ways to save and suggest discounts you might be eligible for.
Common mistakes to avoid
Not asking about discounts
One of the biggest mistakes a driver can make is not asking about available discounts. Commercial auto insurance costs can be lofty, but there are several ways you can lower upfront expenses, like adding multiple discounts to your policy. Make sure to talk to your insurance provider about all the discounts you might qualify for.
Overlooking small discounts
Sometimes, small discounts can add up to significant savings over time. A big mistake drivers make when looking into auto insurance is abandoning valuable discount opportunities for being too minimal. Don’t overlook minor cost reductions because they can make a difference to your overall insurance expenses.
Assuming discounts are automatic
Don’t assume that discounts will automatically apply to your policy. To stay informed, ask your insurance provider about your qualifications. An agent can help you become aware of many factors that could qualify or disqualify you for a discount.
If you want to learn more about how to get savings on commercial auto insurance, contact Infinity Insurance Agent, Inc. today. Find out more about discounts and get a free quote by calling 1-855-478-3705.