On average, fleet drivers have 4.5 accidents per year, making insurance incredibly important.
If your business makes use of any vehicles, it’s important to make sure they’re properly insured. For this, you want to look for a suitable commercial auto insurance policy, and making the wrong choice could cause various issues.
In this guide, we’ll cover the best practices for choosing auto commercial insurance. Keep reading for more.
Understand Your Coverage Needs
There are plenty of commercial auto insurance providers, and their policies can vary a lot. To find one that suits your business, you should start by establishing your needs. Some of the coverages you might want to have include:
- Commercial auto liability insurance
- Collision coverage
- Comprehensive coverage
- Rental reimbursement
- Personal injury protection
- Medical payments coverage
- Uninsured or underinsured motorist cover
Depending on your business, you might need all of these, or maybe just a few. You don’t want to be paying for anything you don’t need, so figuring these out first will help you get the best deal.
Know the Difference Between Personal and Commercial Auto Insurance
You might have a personal auto insurance policy, but it’s important to understand that this will only cover you for personal use. When it comes to commercial use, you’ll need to have a separate commercial car insurance policy. This applies when using company vehicles, or even if you’re using your personal car for commercial purposes.
Decide on a Deductible
Various factors can affect commercial auto insurance costs, and the deductible is one of them. This is what you’ll need to pay when making a claim before your insurance provider will cover the rest.
In general, opting for a higher deductible will result in a lower insurance premium, and vice versa. As such, you should consider how likely you think you are to have an accident. The less chance there is, the higher of a deductible you can reasonably go for.
Use the Latest Market Information
The insurance market can change quite quickly, so you should look into the current state of the market when searching for coverage. You ultimately want to assess the needs of your business alongside the providers you’re considering. Make sure you’re getting up-to-date information on the policies you’re looking at, as well as current insurance rates.
Shop Around
You shouldn’t rush into the first policy you find. Take the time to check several companies to find a deal that works for you. It’s also worth looking at reviews to see what past customers think of various insurance providers.
The Right Auto Commercial Insurance for Your Business
In the US, every state apart from Virginia and New Hampshire requires that businesses with vehicles must have auto commercial insurance. Regardless of the law, having proper coverage is always a good idea, and following the practices above will help you find a suitable policy.
RBP is a leading provider of commercial auto insurance, as well as various other types of commercial and personal insurance. Take a look at our Commercial Auto Insurance page to find out more about how we can help your business.