Whether you deliver newspapers or own a small business with a fleet of cars, if you use your vehicle for business purposes you probably need commercial insurance. Along with providing all the basic coverage that personal car insurance offers, commercial insurance also covers your employees and protects your business assets in case of an accident-related lawsuit.
Because of the additional coverage, commercial insurance tends to be slightly pricier than personal car insurance. Even so, that doesn’t mean you have to break the bank. Here’s a look at how to buy cheap car insurance for your small business.
Hire people with clean driving records
Locking in cheap car insurance starts with whom you hire. As with personal car insurance, your commercial premium will be higher if you or anyone else included in the policy have driving records marred by multiple accidents or tickets. Unlike some of the other factors that determine your rates, like the age of your employees and where your business operates, this is one thing you can control. If applicants’ duties would entail taking the wheel, you can request a copy of their driving record to see whether they would cause a bump in your insurance premium.
It’s also worth knowing that a number of insurance companies offer special rates to businesses with drivers who have commercial driver’s licenses. Though you need not base your entire hiring decision on that one factor, it won’t hurt to check if an applicant has one or can get one.
Skip insurance agents and brokers
Although insurance agents and brokers can be excellent resources to help you find the best policy, you can often save money by bypassing them. Nowadays there are plenty of online car insurance comparison tools that can do the work for you and point you in the right direction. Use these resources to compile a list of at least five quotes to get a better sense of which offers the cheapest commercial car insurance.
From there, you can call individual insurers to see whether they offer any special small business discounts. For instance, some major providers offer discounts of up to 5% to businesses that have been up and running for more than three years.
Keep an eye out for additional discounts
As well as saving your life, automatic seat belts can also save you money on commercial car insurance. The same goes for other add-ons that boost your vehicle’s safety, such as rearview cameras and anti-theft systems. Any type of device that lowers the risk of accident or theft could get you a better deal on your insurance, as it makes it less likely you will have to file a claim.
There’s no way around buying commercial car insurance if you use a vehicle for business purposes. At the end of the day, though, you and your business will be better off because of it. Just remember to do your due diligence before committing to an insurance company by collecting quotes and researching the types of discounts offered.
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