Commercial auto insurance is required for all businesses with vehicles. Whether the vehicle is used for business errands or making deliveries, you need to have this level of car insurance. Here are some things that might affect the cost of your commercial auto insurance policy.
What vehicles are you using?
One important factor that commercial auto insurance companies will look at is the type of vehicles you use for your business. The insurance premium might be different if you have a small car as opposed to a large fleet vehicle used for cross-country treks. The insurance premium is not only based on the total number of vehicles you have, but the types of vehicles and what their safety rating is. They will look at each type of vehicle and what features they have as well, such as anti-theft devices or GPS tracking devices.
What are the vehicles used for?
Not only should you consider the types of vehicles you need insured for your business, but what their main function is. An insurance company might have a different premium for a van that is used for occasional deliveries once or twice a week, as opposed to a van that is used to pick up and drop off merchandise for eight hours a day. This distinction is going to be important when factoring in the cost of your commercial auto insurance policy. The insurance company not only needs to know what they will be used for, but how often they will be driven, who will drive them, and in what areas they are driven. If you have fleet vehicles that travel all over the country, the premium is higher because they might end up in inclement weather, which raises the risk of accidents.
What deductible do you want?
Commercial auto insurance is the same as personal auto policies in terms of deductibles. If you want a lower premium, whether you pay it annually or monthly, you need to agree to a higher deductible. This means the amount you need to pay out-of-pocket before the policy starts covering accidents or other incidents is higher. However, if you want a lower deductible, expect to pay a higher premium in exchange.
How much coverage do you want?
If you want comprehensive coverage for a commercial policy, it will likely be a little higher than if this was a traditional auto insurance policy for personal vehicles. This is because your commercial vehicles might be driving more often, or have expensive materials on-board which makes them a high risk for theft or vandalism. This means to have full coverage, you are going to pay more.
To find out more about commercial auto insurance, contact a company such as Thomas A. Nolfi Inc.
Share16 September 2015
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