Although not every business has corporate cars or fleet vehicles, running your own business does give you the opportunity to write off expenses associated with “work” vehicles. As a result, many business owners elect to dedicate one or more vehicles for business use. And if you happen to have a company that requires employees to drive (for pickup and delivery, travel, or other purposes), buying or leasing work vehicles is probably a consideration. Unfortunately, you will have some costs associated with commercial cars, not the least of which is insurance. While you may be able to write off all kinds of expenses, including your lease payment, fuel, depreciation, and yes, even insurance premiums, still you probably don’t want to pay any more than you have to up front. So here are just a few ways that you can cut costs when it comes to insuring your commercial vehicles.
- Clean record. A good place to start when it comes to lowering commercial auto insurance costs is with your record, and this has a couple of meanings. First of all, clean driving records are a must, so any employees that are going to be operating your vehicles need to submit to a background check before you add them to your auto insurance policy. But you could also earn discounts if your business is in the clear. If you’re an unproven startup, insurers aren’t likely to offer you any breaks. But if you’ve established your business over the course of several years, you could qualify for some kind of overall business discount due to your longevity.
- Type of vehicles. The more expensive your vehicles are, the more you’re going to pay for insurance, so it’s not a bad idea to consider skipping a splurge on a company Mercedes in favor of something more practical. Of course, you might not have a lot of choice here. If you’re running a limo service, you obviously need high-end automobiles. And if you make deliveries you might need a work truck or panel van. But you could always consider used cars that carry less value. In short, there are ways to save here if you put a little thought into it.
- Bundling. If you plan to have multiple commercial vehicles anyway, whether for a fleet, for execs, or simply because usage patterns overlap, then you might as well get them all at once so that you can bundle the insurance policies for the greatest possible savings.
- Seasonal driving. Some businesses only use their commercial vehicles seasonally. Say you run a local grocery store that holds a booth at the farmers market during the summer. When the colder months roll around you may have one or more vehicles parked for the winter. In this case you should discuss the possibility of seasonal insurance policies with your provider.
- Policy. When it comes to choosing a provider and policy that’s going to offer you the best coverage at the most affordable price, you need to be a good consumer and shop around. Finding the best auto insurance in Connecticut or California is a matter of due diligence. So compare quotes from multiple insurance companies, determine what policies they have that will meet your needs, and then use the information you’ve gathered to leverage a better price with the reputable company you prefer. And don’t forget that you can also save on premiums by going with a higher deductible.