Factors to Take Note When Buying Commercial Car Insurance

Jun 15th, 2012 | By Hot News Reporter | Category: Insurance Today

Insuring vehicles used for commercial purposes is an important aspect of any business expense. Commercial vehicles are likely to be on the road for a longer period, which is why they tend to attract higher insurance premiums. There are several factors to consider before you intend to purchase commercial car insurance.

Businesses with a number of vehicles and drivers ought to opt for fleet insurance. This type of insurance is much cheaper than insuring individual vehicles. However, it is important to understand that the number of vehicles required to be eligible for fleet insurance differs among insurance companies. It is mandatory for commercial vehicles to have liability insurance. Most policies include comprehensive coverage and collision damage as well. You will need to talk to your insurance provider for provisions such as loss of cargo that may be damaged or lost during transportation in the vehicle. When purchasing commercial car insurance it is mandatory to provide a list of names of the drivers to the insurance company who will scrutinize their driving records. Therefore, it would be prudent to engage drivers with a good driving history otherwise premiums could get costlier. While some may offer higher premiums others may even reject the application for a policy.

While fleet insurance may be the perfect choice for businesses with a large amount of vehicles, there are also commercial car insurance policies designed for those with a smaller fleet. This type of insurance is available for only specific types of vehicles so you will need to check with your provider prior to opting for one. It would be prudent to speak to an experienced broker or agent to get the best type of policy to suit your requirements. An additional way to keep commercial car insurance low is to install anti-theft and safety features such as immobilizers, air bags, GPS tracking, alarms, and more.

For owners of commercial vehicles it would be prudent to select mid-priced vehicles to lower insurance rates. On the other hand, businesses that engage drivers that own their vehicles can end up with lower insurance rates. Deductibles are another important aspect of commercial auto insurance. If you can pay a higher deductible your premiums will be much lower. Just make sure the amount of deductible is what your business can afford to come up with upfront in case of any claim filed by you. If your employees drive their own vehicles during business hours it is important to purchase adequate liability coverage for each individual.

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