Domestic cars are not the only ones that require auto insurance. Commercial vehicles must have auto insurance otherwise the owner is likely to face huge expenses in case of accidents or damage claims. As much as 40.3 % of vehicles on American roads are commercial vehicles. Commercial vehicles are those which are driven for business purposes. These could be trucks, pick-ups, vans, buses or even cars. Before buying auto insurance for your commercial vehicle, you must get all your doubts clarified. Ask the following questions to get a clear picture of what it would take to buy insurance.
Why should you purchase commercial auto insurance?
Buying auto insurance is critical to protect your business against claims related to your business vehicles. This can save you if your vehicle or driver causes damage to other cars or other property.
Will you get a better deal if you have many vehicles to insure?
Yes. Commercial vehicle insurance has an option called ‘fleet insurance option’. Most businesses have more than one vehicle they like to insure. It is often cheaper to opt for fleet insurance. Individual insuring of the vehicles usually proves more expensive. Again, fleet insurance varies from company to company so ask several before you pay.
How do you reduce commercial vehicle premiums?
Several factors dictate commercial vehicle rates. For example, business location is one of them. If the driving involves rocky or dangerous terrain, premiums will often be higher. Similarly, if your business is located in a theft prone area, premiums will be higher. The installation of seat belts, alarms and air bags go a long way in establishing safety standards. These really help in lowering the premium.
Another important issue to consider is choice of driver. Hire drivers with safe driving records and valid licenses. Unimpressive driving records will spike the premium significantly. Opt for durable and stable vehicles rather than speed monsters. Medium sized sedans attract lower premiums than racing sports cars. Choice of commercial vehicle can reduce premiums. The older the vehicle, the higher is the premium.
What happens if you own vehicles that transport goods across states?
If you have a business that transports goods for someone else, there are special criteria involved. States have different requirements for insuring your vehicle. You might have to opt for non-owned insurance coverage. Make sure your insurance providers have a thorough knowledge of what the state requires.
