How much you pay for auto insurance of any type is important. No one wants to overpay. Commercial auto insurance policies can be expensive. Knowing what is affecting those costs can be critically important to keep your costs in line. The key here is to talk to your agent about your risks. Know what is helping or hurting your rates. Here are some of those potential factors.
The Vehicle Itself
The biggest factor is always the vehicle itself. It costs more to insure a large tractor-trailer than it does a passenger vehicle. There are several things that matter here:
- The size of the vehicle; larger vehicles cause more damage, making them a higher risk
- The type of vehicle; trucks and vehicles with a larger or more powerful engine costs more to insure
- The number of vehicles; covering just one truck compared to a fleet of cars can play a role
Each vehicle needs to be a part of your coverage. Your plan needs to address all vehicles with the level of risk they each represent.
Use and Storage of Vehicles
Insurers also need to have some idea of how the vehicles fit into your business. Some business owners need to use their vehicles for just a few days a month. Others operate them each day. When not in use, are they secure in a locked facility? Do they go home with employees? Do the vehicles perform dangerous tasks, such as driving over unsafe ground? Let your insurer know this information.
The Drivers
Who operates the vehicle? Sometimes, the vehicle is a single car driven by the business owner. It costs significantly less to insure this than a truck or fleet that numerous people drive all the time. However, the driver’s experience plays a key role in protection. For example, truck drivers typically cost more to insure because of their long routes.
However, if that driver has more experience, that can help to defray some of the costs. The cleaner the record, the better your coverage might prove.
Your Coverage
Other factors can also play a role in your commercial auto insurance needs. The rating territory, miles driven, and the company type can matter.
You can select a range of specifications within your commercial auto insurance. You set the deductible. You choose the limits. All of this should match your needs based on the value of the car and other risks present.
Learn more by contacting the experts at Bromell Agency. We can help you find out what type of coverage is best for your individual needs.
Also Read: Does Commercial Auto Insurance Include Collision Coverage?