Whether you have just started that company you always you dreamed of having or are ahead of the game and already have a business, insurance is always a necessity and a topic of discussion. You have your General Liability to protect your business, your workers compensation insurance to protect your hardworking employees, your property coverage to protect any properties or personal property you own, and then you have company owned vehicles that must be covered. But, you don’t know where to start and you don’t know how much it will cost you. While you know insurance can seem confusing and expensive, you also know an accident without coverage will be much more expensive, and much more of a headache. So, in order to help make your commercial auto insurance quote viable, reasonably priced, and less of a mystery here are 5 factors that your insurance broker will take into account when deciding your cost.
1. The vehicle or vehicles you wish to insure
Your company vehicle is most definitely a factor, because with so many different types of vehicles some will either increase or decrease your company’s risk factor. In this case, whether you have a brand new car or a super old one, they both have risks of their own, making this factor a bit tricky to maneuver. If your brand new company car with no accident history, is affordable, durable, and great on mileage, but also a common car to be stolen, you will likely pay more for the commercial auto insurance, because the risk of it being stolen is high. Another factor is if your company vehicle will need a trailer. For example, if you transport horses from place to place, you will need a horse trailer, and thus, you will need trailer insurance, which can be added to your Commercial Auto Quote which will be an additional cost for you. While it may seem like either vehicle you choose for your company will cost you more money, there are some tips for decreasing your cost to insure it. For example, if the vehicle has an engine cut-off system, airbags, or lower accident rates these additions can help decrease the overall cost to insure it. Of course a good portion of these facts are out of your control right? I mean you are going to purchase whatever vehicle you need to get the job done however it is your insurance broker and the insurance carrier’s responsibility to make sure everything is properly insured and rated.
2. The Employee or Employees you wish to Insure
Motor vehicle driving records and their affects may be the most obvious factor, but luckily, it is also the easiest to understand. These driving records aim to estimate the likeliness of your employee to get into an accident based on their personal driving records. An employee who has a spotless record may cost less for you to insure then one who has two accidents and a DUI on their record. Insurance companies will look at these driving records and determine your Commercial Auto Quote based on the risk of them driving.
3. What is your Driving Exposure?
This is based on where the company vehicle will be driving to and how often it will be driving there. Again, it all goes back to risk. If you have employees constantly on the road and driving an enormous amount of miles throughout the day, then their risk of getting into an accident or filing a claim is higher. Therefore, the risk and thus your commercial auto insurance quote increases. If your employees are making shorter trips then the risk and cost is justifiably lower.
4. How much coverage do you need or want?
Now you already know what you want and need covered in the case of an accident, but how much do you want to be covered for? Sometimes people will choose less coverage, thinking they will save money, but in the long run, if you encounter a claim things can get expensive when not properly or fully covered. Before deciding how much coverage is appropriate for your company, remember some companies you work with/for might require you to have specific coverage’s and understand that the whole company is at risk every time that vehicle is on the road so choose wisely.
5. Deductible needs and options
A deductible is the amount of money you must pay on a claim before the insurance coverage from the insurance carrier applies. The lower the deductible, generally the higher your monthly premium and Commercial Auto Insurance Quote will be, and vice versa. For this factor, you must take into account the amount your willing to take on before the coverage takes place. This understanding of your company’s finances is how you can help estimate what the company can contribute to any claim that arises.
Hopefully now you are feeling a bit more confident when looking to get commercial auto insurance quotes. You should have some idea on what factors will increase and/or decrease your overall cost for this necessary coverage. Accidents happen all the time and with the number one form of commuting being via automobiles, you want to make sure your company will not only survive a car accident but will have the right commercial auto insurance to help you along the way. Don’t stress too much though, as long as you have a viable insurance broker to represent you, they will find just the right carrier and policy for your business. Luckily you’ve stumbled upon the perfect representative; let JVRC Insurance Services be your one stop shop for all of your business insurance needs!