How to Save Money on Your Commercial Auto Insurance

by Melanie Broemsen

Whether you're in a cash crunch and need to slash expenses quickly, or just want your business to run leaner, evaluating your commercial auto insurance is a good, but often overlooked, place to start. Even though commercial vehicle insurance can be more complicated to buy than personal auto insurance, controlling some of its expenses - without sacrificing your coverage - is much easier than you might think.

Simply follow these five money-saving tips, and you could significantly improve your bottom line by reducing the amount you pay for your commercial auto insurance:

Ask about discounts - Nearly every commercial auto insurance company offers some type of discount. Review all of the potential savings opportunities with your insurance agent, and be sure to inquire about common commercial vehicle insurance discounts, such as:

• Full payment - Ask if you qualify for discount when you pay your annual premium in full, rather than making a monthly payment.
• Customer loyalty - Find out there are any rewards for being a long-term policy holder.
• Experienced business - Determine if the age of your business can qualify you for additional savings.
• Special equipment - Inquire if adding any safety or security equipment to your vehicles could reduce your commercial vehicle insurance premium.
• Claims-free - Get rewarded for being a safe driver.
• Multi-policy discount - Earn an additional discount when you insure your commercial and personal vehicles with the same provider.

To entice and retain your business, commercial auto insurance companies often introduce new promotions and incentives. Check for new discounts on an annual basis.

Maintain continuous coverage - Proof of prior insurance coverage is one factor most commercial auto insurance companies use to determine your premium. Maintaining continuous coverage for at least three years shows you are a responsible vehicle owner, and can save you money both in terms of reinstatement fees and lower premiums.

Especially if your business operates in a seasonal industry, such as landscaping or snowplowing, you may be tempted to let your commercial vehicle insurance lapse during slow months. However, the immediate savings you gain can be lost when it's time to get new insurance coverage. To maximize your savings, maintain year-round Comprehensive insurance. In most cases, you'll end up paying less annually than if you cancel your coverage during off-season.

Hire good drivers - Since even a couple of minor traffic violations, like speeding, can increase your premium by as much as 15 to 30 percent, maintaining a clean driving record can save you plenty of money. In addition to avoiding costly fines, a clean driving record can reduce the cost of your commercial vehicle insurance. Before adding a new employee to your payroll, request a Motor Vehicle Report (MVR) to determine if your potential new hire has a safe driving history.

In addition, you may discover that drivers with a CDL license can qualify for a commercial auto insurance discount. Even if you don't use vehicles that require this type of license, it may benefit you to seek drivers with this expertise.

Check your credit score - Sometimes commercial auto insurance companies use your insurance credit score to calculate your premium. It's a bit different than the traditional credit scores most of us are familiar with, but similar in that better your credit, the greater chance you have of earning a lower premium. To avoid surprises, review your credit report and score in advance. If there have been significant improvements to your credit, ask your insurance agent for a new quote.

Remember, it's not just about price - Keep in mind that the provider you choose does matter, and opting for the lowest quote may not be the best deal. For example, you may suffer losses when one of your vehicles is out of commission. If your commercial auto insurance company takes weeks to repair your vehicle, any savings you enjoyed may be lost. In fact, it could even cost you money.

Before making a final decision, ask the following questions:

• How long has this company offered commercial vehicle insurance? Are they considered experts?
• Are claims handled by trained company or contracted third-party representatives?
• Is there 24/7 claims service? Are claims handled quickly and efficiently?
• Does the company offer coverage options that meet your business needs?
• Are there flexible payment plans? Can you manage your policy online?

Finally, be smart about your commercial auto insurance policy. While cutting corners to save money may be tempting, it could put you at risk. Be sure you understand how much and what type of coverage you need to adequately protect your livelihood. If you're unsure, consider calling a professional, like a Progressive insurance agent, for advice. Progressive is one of the fastest growing commercial auto insurance groups, and specializes in fulfilling the needs of small businesses. For more information, visit ProgressiveCommercial.com.

Source: http://www.goarticles.com/cgi-bin/showa.cgi?C=1555516