Here are eight tips to help you save money on your business auto insurance policy without sacrificing your coverage.
- Hire safe drivers: Your insurance premiums will go up considerably if you hire an employee with points against their license because they pose a greater risk of accident to your company. Instead, make sure you hire employees with clean driving records or, reserve the driving duty for those who do.
- Invest in training: Making safe driving classes mandatory for your employees will show you insurer that you are serious about safety and will train your driving employees to act properly when on the road. This will help reduce the risk that they pose and will help reduce your rates.
- Raise your deductibles: It is no secret that increased deductibles lower premiums. It is important that you review your budget annually and impose deductibles that you can afford to pay. As your revenues increase, it is possible that your deductibles can too. But make sure that you do not get too aggressive with your deductibles and that you can afford those you set. Otherwise, you could be setting yourself up for more financial damage than an expensive premium would create.
- Review your coverage annually: When you simply renew the same insurance policy over and over without reviewing it, you could be missing subtle changes that have occurred in your business and that should be reflected in your policy. For example, it is possible that you have too much insurance on company vehicles that have lost value over the years or, maybe you are covered for incidents that you and your drivers have little risk in encountering. It is important to review all these factors annually so you can stay on top of inefficiencies and streamline both your policy and your premium.
- Lower your limits: Keep track of the value of your fleet and lower your limits accordingly so that you can keep your policy affordable. Your company vehicles lose value every year and, if they are driven often, may lose value at a faster rate than a normal car. There is no point in having a high limit if your cars aren't worth that much, unless you are looking for replacement value instead of actual value. When it comes to medical and bodily injury coverage, be sure not to lower your limits too aggressively since these costs tend to increase over the year rather than decrease.
- Invest in anti-theft devices: Make sure you have tracking systems, steering wheel locking devices and alarms to help reduce the risk of theft and reduce your insurance premium. Also, make sure your cars are stored in well-lit areas to further reduce the risk of vandalism or theft.
- Safety features: Make sure your cars have safety features such as airbags, automatic seatbelts and anti-lock brakes. All of these automated safety devices will help reduce injuries when accidents occur which reduces the possible medical expenses and reduces your insurance company's risk.
- Reduce endorsements: You can add endorsements like driver-other car and non-owned vehicle, but these endorsements will increase your premium. Evaluate their cost in relation to having a separate policy for your family or not allowing employees to drive their vehicles for company business.
Remember, when it comes to controlling premium costs, it is all about reducing the risks your insurance company takes on. Whether those risks involve exposure to claims or the expense of potential claims, your reducing exposure to them will always result in lower premiums. Plus, you'll get the added benefit of reducing your own company's exposure to these insurable incidents which, even when covered by insurance, can put a cramp in your business operations as well as your wallet.