Business owners face a lot of expenses. One way to lower costs is to shop effectively and look for how to save on business insurance rates since every nearly every commercial enterprise needs insurance.
Get the Right Insurance
Business owners need to be aware that when they drive their car, truck, or van for commercial purposes, they need to purchase commercial auto insurance. This can be for one vehicle or for several vehicles, but premiums can get expensive.
Just like people need auto insurance for the vehicles they drive for personal reasons, they also need to purchase commercial auto insurance for the cars they drive for work. Commercial insurance has a different risk category than personal lines.
Hire Safe Drivers
Safe driving is a key step to keeping costs low. If there is an accident when the owner or an employee is driving for the business, the business insurance policy will cover the vehicle and the protect person driving, but an at-fault accident will increase rates. This is why it is important to hire scrupulous drivers and screen them in advance.
Drivers with clean driving records are the best choice as they present less risk and can save you a lot of time and hassle in the long run. It may be difficult to find several drivers who have completely clean records, but business owners can weed out those with checkered records as they can raise
business ownersâ premiums.
Also, if a business owner has multiple vehicles, it is best to combine them onto one policy so as to take advantage of multi-vehicle discounts. Many of the top auto insurance companies offer great policy options for business owners.
If you have drivers putting on a lot of miles, it may be wise to put them through a defense driving training course. Some insurance companies offer discounts to drivers who attend safety courses. By having their employees in these courses, business owners may be able to lower their insurance rates. Check with your company to see if this discount is available.
Raise the Deductible
As with personal insurance policies, business insurance policies have a deductible, the amount of money that the business owners will pay if their vehicles are involved in a car collision. When the deductible is higher, the insurance company will lower the insurance premiums. However, Business owners must be sure they have the funds available to pay the deductible if their drivers are involved in a vehicle collision before they choose one that is too high.
Consider Different Payment Options
By choosing the right payment options, business owners will save a lot of money on their insurance premiums. First, they can opt to pay their premiums all in one sum rather than on a monthly basis. This option helps them save on the administration fees the insurance company charges for month-to-month payments.
Business owners will receive up to a 10 percent discount from some insurance companies for paying their premiums up front. If business owners find it more affordable to pay their premiums by the month, they may be able to save on the administration fees if they sign up for electronic payments. This option also prevents them from being susceptible to having to pay late fees because the amount will be debited from their bank accounts on a set date.
What’s stopping you from having the right insurance for your business?
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Author’s Bio:
Jason Nelson writes about driving safety tips and how to save from top auto insurance companies at BestCarInsuranceCompanies.net.
Thank you, Jason! Great information!
–ME “Liz” Strauss
Work with Liz on your business!!
