Insuring your business or company cars is just as important as insuring your personal vehicle, if not more. This is because there is more financial harm at stake when an accident occurs with a car or truck used for business. For some, that’s their profit and livelihood being affected.
While business car insurance will naturally cost more than personal car insurance, there are still ways to save and find it at a low cost, just how you would with any other type of insurance. This post serves as your tell-all guide on how.
How is The Cost of Business Car Insurance Determined?
In any realm of insurance, everyone pays a different amount, and the averages aren’t easy to determine. It depends on several factors such as location, what is being insured, the risk of the insured item or person, and how much coverage the insurance entails. When it comes to business car insurance, the following are what most affect the cost of insurance for the vehicles you use for business.
The Type of Business You Use Your Car(s) For
The insurance provider will always ask about the kind of work you do and what you use vehicles for to gauge the daily risk they will face in day-to-day operations. For example, vehicles used for construction jobs and heavy equipment transportation will carry higher insurance than a work car being used to just transport clients and employees. How much the vehicles are used for business purposes will also play a role in determining premiums.
The Type of Vehicles You Use For Business
Business insurance providers will also look at the cars and trucks themselves. Make, model, age, and size can all help determine how much of a risk the vehicle is to insure. For example, that old delivery truck you’ve had for several years will have lower premiums than a brand-new larger truck used for the same purpose. The vehicle’s value can also be factored into your business insurance policy if you choose certain coverages that use it.
Location of Your Business
Where you will mostly drive your business cars also play a role as insurance providers will consult the zip code of your business. Businesses that operate in a big city will pay more for business car insurance because of the additional traffic and crime in relation to the population size.
Employees’ Driving History
Gauging the risk of the driver, as well as the car, is another important aspect of determining insurance rates. Insurance providers do this by looking at policyholders’ driving history. When it comes to business car insurance, they will look at the records of your employees as they calculate your rates. Drivers with a history indicating accidents and violations can cause car insurance to be more expensive for business owners.
Company’s Coverage Needs
Of course, everyone has different insurance coverage needs, and businesses are no exception. The cost of your business car insurance policy will increase based on how much coverage you choose to have. This can depend on you and your business’ needs.
What Are Ways to Save on Business Car Insurance?
Some business car insurance providers may be willing to cut you a discount with any of the following if you meet the qualifications:
- Prior car insurance – If you have had auto insurance with the provider for personal reasons before, they may cut you a discount if you use them for business reasons.
- Bundle discount – See if the insurance provider in question also sells business insurance. You can often bundle that with business car insurance for a reduction in premiums.
- Commercial driver’s license – For those drivers with a commercial driver’s license for certain trucks and vans may receive a discount on business car premiums because it shows they have prior experience and are less of a risk than a first-time driver.
- Paid in full – This is a common discount in the world of insurance. By making your first-time payment for your policy all at once, you can get a reduction in your business car premiums.