With so many different kinds of commercial auto insurance, it's easy to see how a new small business owner can be overwhelmed and wind up with the wrong policy. Finding the right coverage will save you time and money while avoiding surprises when it's time to file a claim.
What Is Commercial Fleet Insurance?
Fleet insurance is a form of commercial auto insurance that transportation companies often favor. This helps cut costs on owning various types of vehicles such as cars, vans, and trucks.
Types of Coverage
Basic fleet insurance covers both bodily injury and property damage to a third party. Combined Single Limit Liability (CSL) provides both under one coverage limit. Other types of coverage can be added to the plan, such as collision, which pays for damage to your vehicle. Comprehensive coverage pays for vehicle damage due to severe weather, theft, and vandalism.
How Much Does Commercial Fleet Insurance Cost?
What you pay for commercial fleet coverage will depend on the size of your business and the number of vehicles you use. Several other factors come into play, such as age and condition of the vehicles. Older vehicles often cost less to replace, which is why they help lower insurance costs.
The type of business has a lot to do with fleet insurance rates as well. Organizations that regularly involve deliveries or errands will pay more than those that use minimal vehicles sparingly. Shipping and taxi services are both in the category of firms that pay higher fleet insurance costs. If all your business activity is concentrated in one area that doesn't require much vehicle usage, you're in the group that pays lower rates.
Ways to Save Money on Your Policy
Talk with your insurance provider to learn how you can cut your monthly costs. They might have discounts available based on usage and the number of vehicles in your fleet. Also, if you raise your deductible, that is, the amount of upfront cash you pay for damages when you file a claim before the policy pays the rest, your monthly premium payments will drop.
If you are in the stages of planning a company, consider investing more in passenger cars, which typically cost less to insure than trucks or SUVs. Another way to minimize fleet insurance costs is to ensure all your drivers have excellent driving records. You can also get a break in price if you require your drivers to go through a defensive driving safety program. Another option for cutting fleet insurance costs is limiting miles driven per month.
The various types of commercial auto insurance can confuse companies that use multiple vehicles for their operations. When it comes to vehicle insurance, you should understand the type that best represents your fleet. Contact us at United Direct Insurance Services for more information on securing the appropriate commercial fleet insurance at an affordable cost.
