Though commercial auto insurance is a necessity for many businesses, it’s not very fun to squeeze into the annual budget. Fortunately, there are various ways to cut down coverage costs. Let’s take a look at three cost-saving tips that could benefit your business.
1. Multi-Policy Discount
If you buy several policies with the same insurance provider, you can often get a bundling discount. So getting commercial auto insurance with the same carrier that you already have your business insurance policy with is a good savings opportunity. Additionally, you may be able to save by insuring multiple vehicles under the same policy, depending on the insurance provider.
2. Keeping a Clean Record
Premiums are heavily based on risk, so it’s crucial to minimize your business’ risk. One great way to do this is to hire drivers with clean driving histories. Drivers with a proven track record are less likely to be involved in accidents than those with a several driving infractions in the recent past.
3. Vehicle Maintenance
Performing routine maintenance on your business’ vehicles keeps them in good shape, which reduces the risk that something could go wrong while on the road. Insurance providers recognize the benefits of a well-maintained fleet and may offer a discount if you keep quality records of the work.
4. Increase Your Deductibles
An insurance deductible is the amount of money you have to pay before your commercial car coverage in NC starts. It’s your personal contribution to a claim, if you ever file one. The rest is paid by your insurer. Your provider will give you a standard deductible that you may choose to increase to lower your premium. This is because paying for a higher deductible means that your insurer will pay less for claims. It gives them room to pass the monthly savings on to you.
5. Changing Your Payment Methods
Two payment methods can save you money in the long run: paying in full and paying by electronic fund transfer.
- If you have enough money upfront, you may get a significant discount when you pay in full. Monthly payments cost more than full annual payments because of processing fees and interests. If you pay a year’s amount, you and your insurer don’t have to deal with processing your policy every 30 days. You get your coverage – end of story.
- Insurers also charge more for monthly bills to cover for losses caused by late payments. They may charge you less if you pay by electronic fund transfer. This is because they only have to charge your bank account every month. You don’t have to rush to their headquarters to pay your bills. And because there’s lower risk for them, they’ll definitely give you a discount for this method.
6. Claim-Free Discounts
By now, you’ve probably figured out that insurers are more likely to slash prices for applicants who are less likely to pay late or get into an accident. Ask your provider to go through your insurance history for the last three to five years to see if you have any major claims or several small claims. If they don’t find any, it proves that you’re not high-risk and are eligible for a discount.
7. Driving Record Review
If it’s your first time to get auto insurance, ask your insurer if they can look into your driving records. If they don’t find any offenses in your history, they may see you as a low-risk applicant and give you a good discount on your bills.
Wondering how your business could save on commercial auto insurance? Ask your independent insurance agent for personalized advice today.
We’re here to help you save. Call Amistad Insurance Services at (919) 926-7166 for more information on Raleigh commercial auto insurance.
