A commercial auto insurance policy can give you coverage for your fleet of vehicles and drivers against injury, loss or damage to vehicles or cargo, and damage to other people's property. In general, it offers convenient, unified billing, and a lot of optional coverage to meet your firm's expectations and vehicle characteristics.
It can turn out to be extremely beneficial if you are the owner of a small-or-medium sized business firm as it gives you coverage on your firm's vehicles. It protects your business against potentially devastating liability costs arising from an accident involving your vehicles.
It is normally offered in addition to premium coverage like general liability or commercial packages. More often than not policies consist of multiple-vehicle, claim-free premium discounts, direct billing and other payment options. On the basis of your business, available coverage normally includes bodily injury, property damage and medical payments.
These types of policies can be treated as six-in-one policies as they give an impression of offering six separate policies at a time. Some types of coverage are mandatory because of the state law, depending on where you live. Other types of coverage are optional. It's your responsibility to analyze each one of them and come to a decision of how much you need. Always remember that each type of coverage has its own premium. Just add them up and you are bound to get the price of your auto insurance policy. Subtract the ones you are not interested in and you will get minimize the cost.
Always remember that a policy is a legal contract so it can be a little tricky at a first glance. If you know what you are looking for and where you are bound to get that information, then it's easier to understand. Every insurance policy has three main components: Declaration page, insuring agreement and the terms and conditions of the policy.
As a businessman, you require the same kind of insurance coverage for the car you use in your business as you do for a car you use personally. Whether you need to purchase a commercial auto insurance policy depends solely on the kind of driving you do. But make sure you know the difference between a this kind of policy and a personal auto policy.
Don't get sucked into the idea that it will never happen to you, especially if you have employees driving the cars for your business. You never know when an accident shall occur an it is better to be safe than sorry.
1. Comparison shop. Use consumer guides online from your state's insurance department. These guides tell you what coverages you need and show you sample auto insurance rates, usually from the biggest companies. Get auto insurance quotes from at least three insurers.
2. Ask for higher deductibles. When you file a claim, a deductible is the amount of money you pay before your auto insurance company pays for the rest of the damage. Higher deductibles mean lower premiums. For example, increasing your deductible from $200 to $500 on collision and comprehensive coverage could reduce that portion of your premium by 15 to 30 percent, according to III.
3. Drop collision and/or comprehensive coverages on old cars. If your car is totaled in an accident, you receive the actual cash value of the car. Although auto insurance companies use their own criteria to determine fair market value for vehicles, you can get a ballpark estimate from Kelley Blue Book. For older cars, it may not make financial sense to pay premiums over many years to maintain collision and comprehensive coverage.
4. Buy a "low-profile" car. Cars that are expensive to repair or that have a high theft rate have higher car insurance rates.
5. Take advantage of low-mileage discounts. Some auto insurance companies offer discounts to drivers who put fewer than a predetermined number of miles on their vehicles each year. And with the high price of gasoline, driving less makes financial sense.
6. Consider auto insurance rates when making a move. Car insurance rates tend to be lowest in rural communities and highest in cities, where more traffic congestion occurs and the likelihood of theft increases.
7. Ask about discounts for air bags and other safety features. Your insurance agent can tell you know about these discounts when you purchase your coverage. Most policies give discounts for air bags.
8. Ask about antilock brake discounts. Some states require insurers to give discounts for cars equipped with antilock brakes. Some auto insurance companies give the discount no matter where you live.
9. Ask about other discounts. Some insurers offer discounted auto insurance quotes for insuring more than one car, having no accidents in three years, being a driver over age 50, taking driver-training courses, having antitheft devices and being a long-time customer. Plus, remember good-student discounts when you are insuring a student who drives.
10. Buy your home and auto policies from the same insurer. This will entitle you to a multiline discount.
11. Find out about group discounts. Sometimes group auto insurance policies are available through large employers, professional groups and other organizations.
12. Maintain good credit. Your credit rating may affect your car insurance rates. Use of credit scores in setting auto insurance prices varies by state and insurance company, but statistics show that drivers with good credit records tend to have fewer accidents.
Both David Gass & Amy Danise are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
David Gass has sinced written about articles on various topics from Accounting Guide, Finances and Network Marketing. David Gass is President of Business Credit Services, Inc. His company publishes a free weekly e-newsletter on Small Business Consulting at their