There are many costs associated with running a business. These costs can affect your profits, so cutting them down is essential for your business success. If your business uses one or more vehicles, a big cost you will face is commercial auto insurance. Commercial auto insurance usually costs more than personal auto insurance. Finding ways to save money on this high and unavoidable cost is considered necessary, especially if you have to insure multiple vehicles. Fortunately, there are several things that you can do to reduce the cost of commercial auto insurance. Here are 5 examples.
Maintain Your Business Credit
Your credit score will have an impact on your commercial auto insurance premiums. The better credit you have, the more money you will save. Your credit score is determined by your ability to pay debts and bills on time. Keeping up with your payments and paying them on time will maintain a high credit score. You should be using your business credit rather than your personal credit for any credit-related business costs.
Hire the Right Employees
One of the main things that can alter the cost of your commercial auto insurance is the driving history of your employees. If they have a poor driving record, then your insurance rates will increase. Fortunately, you can check your employees’ driving history before you hire them. This will help you to avoid hiring applicants that will cost you more. Having good drivers will also improve the reputation and safety of your business.
Invest in Safety Training
Whether you need to refresh existing drivers’ training certificates or you need to train new drivers, finding a safety program that offers your drivers more in-depth training is advisable. This is especially important for drivers in your fleet that are high-risk. Fleet driver and safety training courses can promote savings on commercial auto insurance premiums while reducing the risk of accidents. They are also affordable and fleet safety certified.
Keep Your Vehicles Secure
The security of your commercial vehicles will affect the price of your insurance. This is especially important if you are insuring against theft and vandalism. Choosing safe places to park your vehicles at night and investing in some extra security devices can lower your insurance rates. Before you buy or lease a vehicle for business use, it is important to remember that some vehicles are made more secure than others.
Research Your Insurance Policy
Researching your insurance policy is key to saving money on commercial auto insurance. First, you should use an insurance agency over a carrier to reduce the cost of your premiums. Paying your insurance annually will cost less in the long-run, so you should consider paying one large installment rather than a monthly fee. Increasing your deductible and asking about no claims bonuses will also save you money in the future.
Once you know how to save money on your commercial auto insurance, the techniques can be easily applied to your business. Sometimes, you have to spend money to save money, but it will be worth it.
