FRIDAY, MAY 18, 2012
Commercial auto insurance cost management is one of the most dangerous oversights you can commit if you run a business that owns vehicles. This should include all the automobiles that are used for commercial purposes by your business. You might think getting the right coverage will be too expensive, but with proper management you can lower the costs of your commercial vehicle insurance.
 Here are six basic tips for business owners operating a business that uses commercial automobiles.
Check employee driving records - It's strongly advised that the company does its homework on the employees that will be driving the vehicles. Employee driving records can influence rates the same as your driving record does when buying personal auto insurance. Each employees driving record should be checked and other risk factors considered. The company can consult a local insurance agent for help with this task.
CDL or Commercial Drivers License - This license is given to the drivers of commercial-scale vehicles such as large trucks and public utility vehicles. The CDL is a good indicator that the applicant is fully capable of handling commercial-class vehicles and therefore is more skilled than the average driver.
Continuous coverage plans - Failure to renew your coverage on time can lead to insurance lapse, which you don't want to have in your records. A lapse in insurance coverage will lead to higher premiums when you buy your next policy because most insurers want to see proof of prior coverage. Take note that having your policy with the same company for a long period of time can also result in loyalty discounts.
Ask Your Agent about Discounts — There are a lot of them out there. Some examples include discounts for paying in full, being in business for a certain number of years, and more. A good agent will ask for information that would qualify you for most discounts, but it’s up to you to find out about all that may be available to you.
Keep an Eye on Your Credit — Many insurance companies now use information about your credit history as a factor when determining your rate. Ask your agent about what information each company looks at so that you understand what’s influencing your premium. Knowing how insurance companies use this information can allow you to work towards making sure your credit score affects your rates positively and not negatively.
Good budget management – A common reason for companies that end up having lapses in coverage is that they don’t properly budget to ensure they have the money to pay their insurance premiums. It’s very important to choose a coverage that fits your company's budget. Make sure to consider all the costs associated with your commercial insurance plan and look for companies that offer flexible payment options, low down payments, no hidden fees, etc. Reviewing your policy at least once a year to make sure that your policy still meets your needs and your budget can also help save you money.
By Matt Reynolds - Google+
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