As a small business owner, you face a large array of expenses that you have to take on in order to keep your business up and running. If you have any vehicles that you own under your business's name, you need to carry commercial auto insurance. There are specific steps you can take that can help you lower this necessary expense.
Smart Way #1: Bundle Your Policies
Just like you can bundle your personal vehicle's insurance policy with your other insurance policies, such as your homeowner's insurance or your renter's insurance, in order to save money on your policy, you can bundle your insurance policies together. For example, you can bundle your commercial insurance with your property insurance for our business, or with your business interruption policy.
You can't bundle all business insurance policies together with a commercial auto insurance policy, so be sure to talk to your insurance provider about this option. Some insurance providers will also allow you to bundle your commercial auto insurance with your home auto insurance policy while keeping the two policies separate.
Smart Way #2: Ask About Discounts
The second thing you need to do is directly ask the insurance company you are working with, or are interested in working with, what type of discounts that they offer. One of the most common discounts that is offered on commercial insurance policies is a discount for not having any claims for a certain period of time. You may also get discounts for being a member of certain professional organizations or by installing certain safety features on your vehicle.
Smart Way #3: Use the Best Payment Method
Third, be sure to ask if there are any discounts you can get by using a specific payment method. Many insurance companies will offer you a small discount if you pay your monthly balance via an electronic bank transfer. Many insurance companies also offer a discount if you pay the six-month premium in full instead of in smaller monthly payments.
Smart Way #4: Review Your Employees' Driving Records
Fourth, you can ask your insurance company to run DMV driving records checks on each employee who is included on your policy. Allowing your insurance company to see your employees' driving records, especially if they have good driving records, can help lower your insurance rates.
You can reduce the amount that your business pays for commercial auto insurance by bundling your policies, asking about discounts, using the best payment method that will save you money, and allowing your insurance company access to your employees' DMV driving records. These methods are smarts ways to save on a necessary business expense.
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