Commercial Vehicle Insurance Discounts
For any business that uses commercial vehicles to transport passengers or cargo, commercial auto insurance can be a significant expense.
One way to help ease the blow of this expense is by taking advantage of discounts you can apply to your commercial auto insurance policy.
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Types of Commercial Auto Insurance Discounts
As with personal car insurance discounts, there are varied commercial auto insurance discounts of which drivers can take advantage. We’ll discuss some of the more common commercial auto insurance discounts below.
Business Owner’s Insurance Discount
If your commercial auto insurance company also offers business owner’s insurance, you may be able to get a package or bundling discount if you purchase both types of insurance through that same company.
Insurance companies who sell several different types of insurance tend to offer discounts if you buy multiple policies from them.
If you need more than one type of insurance for your business, you should highly consider purchasing these policies from one company and taking advantage of their multi-policy discount.
Paying for your entire policy upfront saves your commercial auto insurance company money by eliminating the need to issue and process monthly bills; it also reduces the risk of late payments or nonpayment. These savings can get passed down to you through paid-in-full discounts.
If you pay your entire premium at the purchase of your policy, you may qualify for a discount of 5% to 15% off your premium.
Commercial Business Experience Discount
Unlike the majority of commercial auto insurance discounts that closely resemble discounts offered towards personal auto insurance policies, the business experience discount is unique to commercial auto insurance.
If your company has stayed in business for several years, insurance companies will see you as successful and a lower risk. This means they will have a larger desire to provide you with coverage.
Because you’ve maintained a certain level of success in your business, the insurance company bets on the potential that you’ll continue to stay around and be a long-term policyholder.
In order to entice potential long-term customers, commercial auto insurance companies are often willing to offer a business experience discount. Typically, qualifying for this discount requires that your business has been in existence for 3 years or more.
Prior Insurance Discount
If you have had your policy with the same company for over one year, you may qualify for a prior insurance discount.
Having proof that you have maintained insurance coverage is a sign that you will continue to do so. Prior insurance discounts serve as your reward and incentive to stay with the same commercial auto insurance company.
Commercial Driver’s License (CDL) Discount
If you purchase commercial auto insurance for vehicles that require CDLs for operation, you may qualify for up to a 20% discount just by having a valid CDL.
This discount is offered to ensure that vehicles under the commercial auto insurance policy are driven by properly licensed drivers. Commercial vehicles are inherently high-risk vehicles. Having a trained driver behind the wheel helps mitigate some of the risks.
Taking Advantage of Discounts
When you are purchasing a commercial auto insurance policy, remember to ask your agent about any discounts for which you qualify. Not all commercial discounts will automatically apply towards your premium.
Some commercial auto insurance companies will factor in discounts as part of your online insurance quote. Still, keep in mind that not all companies offer the same discounts. It is always a good idea to keep close communication with your agent or company representative.