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How to Save Money on Business Auto Insurance Rates

Business owners need to buy auto insurance for their company’s vehicles just like they do for their personal cars. They must purchase bodily injury liability and property damage liability coverage in case they or their employees cause an accident. But business auto insurance can become highly expensive for a business that has several vehicles such as a taxi or a limousine company. Shopping around for the cheapest business car insurance rates is key.

Comparing Quotes for Business Auto Insurance

Business owners may have compared quotes for auto insurance for their vehicles for personal use, and they can do the same thing for their business auto insurance. Not every insurance company offers business auto insurance, so it can be more difficult to find a policy.

Business owners who go straight to a comparison website won’t have to search for the fewer auto insurance companies that sell business auto insurance. The comparison website does this searching and it quickly finds several quotes for its clients to compare.

The hard work of finding the right auto insurance companies will have been done for them. Business owners will only have to call the companies that have given them the best rates, and concentrate on the ways that they can save even more money on their business auto insurance rates online.

Amount of Liability Coverage

One way to decrease business auto insurance rates is to set high limits on liability coverage. The limits that people will set for their business will be different for different circumstances, but there is a general agreement that business owners need at least $500,000 liability coverage on every one of their vehicles.

Some people might think that $500,000 on each vehicle can be an expensive prospect, but it doesn’t necessarily have to work out that way. As people choose higher limits, the policies actually become cheaper.

Other Ways to Save Money on Business Auto Insurance

Business auto insurance requires that business owners pay a deductible. The highest deductibles give people the lowest premiums but business owners must be sure that they can afford to pay the deductible if there is a car accident. If the deductible is too high, business owners really haven’t saved themselves or the business any money.

Pay Premiums by the Year

Paying premiums monthly will add interest fees and administrative costs to the price of the premium. If business owners choose to pay their premiums once per year, they can receive at least 10 percent off of their premiums.

Place Personal and Commercial Auto Insurance with One Company

Business owners often have personal vehicles to insure as well as their business vehicles. If these business owners find an auto insurance company through the comparison website that offers a good quote, the company may also sell personal auto insurance policies. If this is the case, business owners can switch their personal policies to the new company and receive a discount for buying two different types of insurance coverage with one company.

Only Hire the Best Drivers

Before hiring a driver, business owners can make sure to obtain each applicant’s driving record. Doing this will ensure that they only hire the best drivers. The insurance companies will also ask for these driving records and they will judge commercial drivers the same way they judge private drivers. Those with the best driving records will be considered to be the lowest risks.

Give Your Employees Continuous Training

Business owners that hire people to drive for them have a couple of good reasons to require that their drivers take safe driving courses to save money on auto insurance. One is that these courses will help them be better drivers, but the other is that auto insurance companies will give these business owners a discount. Companies that show insurance companies that they take safety seriously are less of a risk, so their premiums can be lower.

Add Safety Devices to the Vehicles

Anything that makes the vehicles safer for the people riding in them such as automatic seat belts, airbags, and anti-lock brakes protect the driver and any passengers from sustaining serious injuries. Reducing injuries will reduce the need for people to file bodily injury claims; the auto insurance company has less risk as a result, and the company receives a discount.

Bundling Insurance Policies

Business owners that are lucky enough to just be starting their businesses or those who have other business policies that are about to expire can seek to purchase their business auto insurance with their other business liability policies. By doing this, some insurance companies can lower their clients’ rates by up to 20 percent.

Keep the Business Going

Business owners can qualify for a discount if they remain in business for at least three years. Insurance companies always have the intention of insuring people they believe will remain with them for years to come. A business that has shown longevity can be trusted to continue to be around to pay their premiums.

Use the Comparison Website Today

When business owners are ready to purchase their business auto insurance, they don’t have to worry that it will take up too much of their time. They can go the comparison website and obtain their quotes from multiple auto insurance companies without having to leave their offices or be on the telephone for hours. They will be back to the other important parts of their business in less time than they could have ever expected.

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