Before purchasing a commercial auto insurance, consider the following points:
- Know the number of vehicles and drivers to be insured
- Know the policy definition of commercial use
- Know how to lower premium costs
Commercial auto insurers offer separate coverage types based on the number of vehicles and drivers to be insured. Fleet insurance is an option for businesses that will have a number of vehicles and drivers. Moreover, fleet or business motor vehicles insurance may be less expensive alternative than individual, per vehicle policies.
A commercial policy will establish a definition of commercial use whereas, your personal auto policy will exclude coverage for commercial use of your vehicles. It is better to discuss this commercial auto policy with your insurance broker.
The premiums of commercial auto business insurance can be lowered by:
- The location of the business vehicles in case of thefts.
- Hiring only qualified drivers with safe driving records.
- Getting the safety and anti-theft devices like alarms, seat belts, air bags, GPS tracking, and other such devices can significantly lower premiums of commercial auto business insurance.
If your business will be hauling cargo, there are certain specific Department of Transportation that must be met with your insurance requirements. You will need to make sure, you and your insurance broker have a proper understanding of those requirements. Also, if you will be delivering or hauling for others or using other equipment such as leased trailers or rental equipment, you will need non-owned vehicle coverage.