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How to get cheap commercial auto insurance
Find simple ways to cut back on a business policy without cutting corners.
How can I save on commercial car insurance?
When calculating commercial vehicle insurance, insurers look at accident reports, your vehicle’s weight and the areas you cover, among other factors.
Still, you can save money on your premium without breaking the bank in ways that include:
- Hire safe drivers. Who you insure on your policy influences your rates. Some insurers offer a discount for putting experienced drivers on your team.
- Raise your deductible. Increasing how you pay out of pocket before insurance kicks in can lower your premiums. It may not work for businesses that primarily transport people or goods.
- Pay in full. Your insurer might extend a discount if you pay your full premium at the start of your policy, rather than spreading out payments over the quarter or year.
- Set up autopay. Don’t want to pay up front? Let your insurance deduct payments from your account each month. Some insurers are willing to reward you for easy, reliable payments.
- Check seasonal rates. You may save money if you run a seasonal business. Ask your insurer if you can reduce coverage in the off-season to save money.
- Bundle business policies. Chances are good that you need more than one type of business insurance policy. If you can bundle your policies together, you might see savings all around.
- Add security features. Most insurers offer discounts for having antitheft devices and safety features on your business fleet vehicles.
Which vehicles have the cheapest commercial auto insurance?
Insurance costs generally depend on the type of business vehicle you’re using. For example, insuring a commercial car can be considerably less expensive than insuring a bus.
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Best discounts for commercial car insurance
Businesses can enjoy many discounts with commercial car insurance. Opportunities vary by provider, but look out for:
- Multipolicy discounts. Save with multiple insurance policies for your business fleet, commercial property, employee benefits and more.
- Multicar discounts. Find an insurer that discounts the rate for multiple business cars.
- Fleet safety. You may see a discount for installing tracking devices on your vehicles or urging your employees to take safety training.
- Affinity programs. Learn if you’re eligible for a discount through membership in professional groups.
- Commercial driver’s license. Drivers may help you reach a discount if they’ve held a CDL for a year or more.
- Loyalty discounts. If you’ve held a policy with an insurer for several years, ask whether you’re eligible for savings.
What to watch out for
It may be nice for your wallet, but the cheapest policy you’re eligible for may not cover your business’s or customers’ best interest.
When considering your options, look for enough coverage to cover your business essentials and worst-case scenarios without straining the company budget. Here are a few things to watch out for:
- Low coverage. The cheapest option may not provide adequate coverage, requiring hefty payments out of pocket after an accident.
- High deductibles. A cheap policy can translate into unaffordable upfront costs before your insurance kicks in to cover damages.
- Low maximums. Big vehicles can cause big, expensive damages. If you’re covered for only $50,000 in property damage and cause $100,000 in an accident, you’ll have to pay out of pocket to cover the differences — not to mention the cost of repairing costly trucks and equipment.
- Claims hassles. Choosing the cheapest provider could mean a hassle when filing claims. You could even be denied coverage if the situation runs into a gray area.
- Passenger coverage. If your business transports passengers, consider allocating more coverage to protect that precious cargo in an accident. Such coverage may increase your premium.
- Cargo and equipment. Consider coverage for what you transport and the tools you need to thrive. The more valuable those items, the more likely you’ll need protection in an accident.
You’ll likely pay more to insure your business vehicles than your personal car. But you can lower the price you pay by opting for a cost-effective vehicle, lowering safety risks or qualifying for discounts.
In the end, the best policy for your business will cover you, your customers and your employees with adequate protection without overburdening your budget.
Common questions about commercial car insurance
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