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Monday, 2 July 2012

Cheap Commercial Auto Insurance

If you use your car for commercial purposes, such as making deliveries for your small home business or visiting contacts, then you need to buy commercial car insurance for your car. Personal auto insurance policies may deny coverage if the car is used for commercial purposes, as they generally cover only the regular daily use of the vehicle (i.e. traveling to and from work and trips for leisure purposes). This exposes the small-business owner to serious financial losses if the car is involved in an accident.

Commercial auto insurance is often cheaper per vehicle than private auto insurance, but the costs are still not considered cheap, so reducing your costs and financial exposure through smart insurance policy selection is definitely a must do activity for any business.

You need to develop strategies for maintaining your fleet that attract better discounts from insurers. The obvious approach is to contract for regular inspections and repairs, thus avoiding unnecessary off-road time, in fact scheduling servicing of your vehicles outside of their normal warranty inspections is good business anyway.

Your company employees are the people who actually drive the vehicles and statistically you should expect a certain percentage of accidents, but can you minimize these, well yes you can. Check the driving record of your employees at least one a year, and organize a defensive driving program for regular drivers, with emphasis on safe stopping and accident avoidance.

Don't be afraid to ask for regular quotes from insurers, remembering that policies change from time to time, and if you know your fleet and drivers it should be a trivial matter to request no obligation quotes from your insurer and their competitors every year, or even every 8-10 months if you feel the industry is competitive.

However, loyalty to your chosen company may be worth more in the long run than saving a small percentage of your insurance rates. Sometimes you just have to make the choice to stay with your existing insurer because the relationship is solid enough that nothing is a major headache. A new insurer might be cheaper, but do you have faith you'll be able to call your claim manager after hours?

Be sure to review your existing policy every year, vehicles in your fleet change, and your company may not have made any claims recently. No insurer is going to willingly reduce your premium, unless you ask for a reduction and you'll be in a much stronger position if you can show a good record of claim minimization.

It may also be worth considering increasing your deductibles if the company has made positive efforts to reduce accidents by reviewing employee driving records or paid for defensive driving programs.

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