Business auto insurance is a must-have for anyone using a vehicle for commercial use. But just because you have to have it, that doesn’t mean that you don’t want to find a way to spend less on your business insurance policy. Here are some tips that could help you save money on your business auto insurance policy without sacrificing your coverage.
- Higher deductibles: It is no secret that with higher deductibles, your premiums will be lower. It is important that you review your budget annually and set deductibles that you can afford to pay. As your revenues increase, it is possible that your deductibles can too. But make sure that you don’t get too aggressive with your deductibles and that you can afford those you set. Otherwise, you could be placing yourself up for more financial damage than an expensive premium would create.
- Lower your limits: Keep track of the value of your fleet and lower your limits accordingly so that you can keep your business auto insurance policy affordable. Your vehicles lose value every year and, if they are driven often, may lose value at a faster rate than a normal automobile. There is no point in having a high limit if your cars aren’t worth that much, unless you are looking for replacement value instead of actual value. When it comes to medical and bodily injury coverage, be sure not to lower your limits too aggressively since these costs tend to increase over the year rather than decrease.
- Review your coverage annually: When you simply renew the same insurance policy every year without reviewing it, you could be missing changes that have happened in your business and that should be reflected in your policy. For example, it is possible that you have too much insurance on company cars that have lost value over the years or, maybe you are covered for incidents that you and your drivers have little risk in encountering. It is important to review all these factors every year so you can stay on top of inefficiencies and streamline both your policy and your premium.
- Training: Making safe driving classes mandatory for your employees will show your insurer that you are serious about safety, will help reduce the risk that they pose and will help reduce your rates.
- Invest in anti-theft devices: Make sure you have tracking systems and alarms to help reduce the risk of theft and reduce your insurance premium. Also, make sure your cars are stored in well-lit areas to further reduce the risk of theft or vandalism.
- Safety features: Make sure your vehicles have safety features such as anti-lock brakes, airbags and automatic seatbelts. All of these safety devices and features will help reduce injuries when accidents occur which reduces the potential medical expenses and reduces your insurance company’s risk.
As an Independent Agency we have access to many companies and products. Through this vast market we are able to offer you the professional protection you need and deserve. Call us at (225) 490-5678 to learn more about Baton Rouge business auto insurance or get a free business insurance quote.