Last Updated: September 12, 2022

Amazing Tips to Save Money On Your Commercial Car Insurance

TLTR: Commercial car insurance for your business vehicle provides you with a safety net for any potential risks.

Many businesses require the use of vehicles in the course of their work. If a business regularly uses a vehicle for commercial purposes, then they are required by law to have commercial auto insurance in all states except New Hampshire and Virginia. This insurance policy is important as it provides coverage against liabilities that stem from accidents involving the business vehicle.

Commercial auto insurance provides coverage for medical payments and property damage following a car accident. Additionally, it also covers any legal expenses if your business gets sued when your vehicle is involved in an accident. And it provides coverage in case of theft, vandalism, and unforeseen weather damages. According to a study by AAA, the average cost to own and use a 2020 model vehicle was $9,561 in 2020.

Generally, commercial car insurance is more expensive compared to personal auto insurance since businesses have more liability risks compared to an individual. It typically has higher policy limits, and coverage for equipment, supplies as well as goods and people that you are transporting.

Despite the higher cost, commercial auto insurance is an essential policy for businesses. Here are seven ways that your business can save money on the right commercial auto insurance.

In this blog

Request discounts on your commercial car insurance

Many insurance carriers provide discounts on their policies depending on whether you qualify for them or not. For example, if you have a good track record of driving or have not had any accidents in a certain time frame, you could be eligible for a discount. Make sure you ask your carrier what discounts they offer and if you qualify for any of them, especially at renewal time. 

commercial car insurance for work

Bundle your commercial car insurance policy

When you bundle your insurance policies, chances are that you will get an overall lower rate for your business. Purchasing an insurance package with different policies will help you save money compared to buying the policies individually. Having your commercial car insurance bundled with general liability insurance and a business owners policy is a great way to lower your costs. Opting for a bundled policy saves you money as well as helps you keep track of your claims and premiums.

Raise your deductibles

After a claim is made, the deductible is the amount that you pay before the insurance coverage kicks in and covers the loss. When you have a higher deductible, then the annual premium you pay will be lower. This is one of the best ways to reduce your premiums. Just make sure that the deductible you choose to pay is affordable. 

commercial car insurance industry

Know your commercial car insurance needs

When you are purchasing auto insurance for your business, knowing your coverage needs is imperative since the coverage you choose is a factor in determining your premium. When you know your specific needs, you can pinpoint what you need from your insurance and help reduce your costs. 

There are multiple commercial car insurance endorsements available that may or may not make sense for your business. For example, rental reimbursement will cover the cost of a rental vehicle if your business vehicle is out for repairs due to an accident. But if your only business vehicle, then it makes sense to have this coverage, however, if your business has several vehicles that are not in use every day, then it may not be needed. 

When it comes to liability limits, the higher the limit, the higher the premiums. Each state has minimum limits that you’ll want to meet, but you’ll also want to make sure that your limits aren’t too low. You don’t want one serious accident to bankrupt your business. Determining your coverage needs and liability limits is a balancing act, but taking the time to think about what your business needs can save it from paying for unnecessary coverage. 


Get multiple quotes for your commercial car insurance

The price of commercial car insurance differs from company to company. Insurance carriers compete with each other in terms of pricing and services to attract clients. Knowing what carriers are offering can help you figure out the general price of the insurance you are purchasing.  

Try to get quotes from multiple companies so that you have a range of options. Also, keep in mind that you want to purchase insurance from a reputable company that has a good history with clients. While you want an affordable policy, you also want an insurance company that will have your back in the event of a claim. 

Enforce safe driving habits  

When driving, it is of paramount importance that you are free from any distractions. A split-second distraction can lead to a disastrous accident. You can make your employees take a safe driving course and enforce a ‘No Texting/Calling’ policy while driving a company vehicle. According to the National Safety Council, an estimated 38,800 people lost their lives from car accidents in 2019.

Adopting a safe driving policy can help your business avoid accidents thus keeping your premiums low. Moreover, your insurance carrier may provide your business with a discount for adopting safe driving policies.

practical commercial car insurance

Maintain a good credit score

A good credit score indicates that you can keep up with your payments. Many insurance carriers look at your credit score when determining your premium. If you maintain a good credit score, your commercial car insurance carrier might offer you lower rates.

Bonus Tip: Pay For Your Commercial Car Insurance in Full or Electronically

A good credit score indicates that you can keep up with your payments. Many insurance carriers look at your credit score when determining your premium. If you maintain a good credit score, your commercial car insurance carrier might offer you lower rates.

Need a reliable insurance coverage for your business vehicle? Get in touch with a local insurance agent today!


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