How To Save Money On Commercial Auto Insurance
A commercial auto insurance policy protects your business from financial responsibility in the event of a business related car accident.
For example, if you own a flower shop that uses trucks or other commercial vehicles to deliver flowers and one of your delivery drivers strikes another vehicle, your commercial auto insurance policy will cover repair expenses for property damages and medical expenses for injuries.
A commercial insurance policy can be costly to maintain, but there are many ways to lower your annual premium.
Choose a Higher Deductible
When you purchase a business insurance policy, you must choose a deductible―the amount of money you are willing pay out of pocket in the event of an auto accident.
Choosing a higher deductible will result in a lower annual premium, but choosing a higher deductible than you can afford could lead to vehicle damages you're unable to pay for. For this reason, you should carefully consider the amount you can afford to pay at any time, and choose your deductible accordingly.
Choose a Different Payment Option
Paying for your commercial insurance policy in full will save you various administration and interest fees. In addition, some companies offer a discount of up to 10% for paying in full.
You can also save on administration fees by choosing the electronic funds transfer (EFT) option. With an electronic funds transfer, your insurance payment is taken out of your bank account automatically at a predetermined date, thereby eliminating late fees.
Choose Your Personal Insurance Provider
Many companies offer a discounted insurance rate to repeat customers carrying more than one auto insurance policy. For this reason, if you currently have a personal auto insurance policy, you could save on your commercial auto insurance policy by using the same provider.
It is still, however, a good idea to compare auto insurance quotes before purchasing a commercial policy. You can compare car insurance quotes online, or by contacting the Insurance Department in your state.Compare Commercial Insurance Rates in 3 Steps
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