If you possess a fleet of vehicles for your business, you might have experienced that commercial fleet insurance is a huge expense. Many business owners look for ways to lower their small truck insurance, all while managing the coverage that they require to protect their business vehicles.
Here we have rounded up some simple strategies to lower your commercial fleet insurance.
Table of Contents
Hire The Best Trained Drivers:
One of the key things to lower your commercial fleet insurance is to only hire trained and skilled drivers. After all, the safety of your vehicle is associated with the person behind the wheel.
If their driving record is clean, you are likely to get insurance on the lower rates. An untrained and unsafe driver not only risks your business vehicles but also leads to the raised premium costs.
Make sure to check their driving history for violations and serious accidents.
Keep Your Deductibles Higher:
Opting for the higher deductibles can help save significantly on the premiums. A deductible is an amount you agree to pay out of pocket while making a claim. If you pay a higher out of the pocket amount, your premiums might be lowered by the insurer.
For instance, if you have a deductible for $ 3,000 and the repair cost of your damaged vehicle is $5,000, you have to pay $3000 out of pocket. The rest amount ($2,000) will be covered by your insurer.
The higher your deductible amount, the lower your premium will be.
If you raise your deductible up to 70%, you can save 40% on your premium. This saving can offset the “out of pocket” amount while making claim.
Shop For The Quotes:
Looking for competitive quotes can also help you lower your fleet insurance. Luckily, it is not a cumbersome process.
Several websites help you get multiple quotes from top insurers with high ratings at the comfort of your place. This way, you don’t need to move from pillar to post to obtain quotes.
Compare these commercial fleet insurance quotes to find a better insurance deal. The rate might vary from insurer to insurer. However, make sure to choose the quotes that cover your requirement.
Get Several Insurance Policies From The Same Insurer:
If you are looking for home insurance and product liability apart from your fleet insurance, consider getting them all from the same insurer. This might help you save money as the insurer might give you a discount on the bundling of policies.
Getting most of the policies from the same insurer saves time and hassles which can be otherwise faced with contacting various providers about various policies.
You pay one insurer for all the policies you need. And whenever you require advice or modify one of your policies, you only need to contact one provider.
Reduce Mileage:
You can also get some discounts by driving fewer miles. If you keep your mileage lower, your insurer can lower the rates. In other words, longer driving distances can lead to expensive premiums. Or it is better if you review the average routes of your fleet to see if you can bring the premium cost lower.
You can minimize the hours your drivers are needed to complete by dividing the routes otherwise used by individual drivers. This might mean hiring more drivers or requesting them to work on additional days than they do otherwise.
The amount you save on lower rates out of this practice will be larger than paying off any extra labour costs in the long run.
Ask For The Discounts:
Apart from using the above-mentioned tips, you can ask them if they can provide discounts. Tell them that you are looking for the lower costs than those offered by other insurers. Insurers are more likely to lower the premiums as they are vying for your business.
Bottom Line:
So these are some tips to save on your commercial fleet insurance. However, don’t settle for the overly cheap quotes as they might be cutting a corner. Keep in mind that you opt for insurance to cover your risks. And there is no point to going for the cheaper covers if they fail to cover the risks.
What do you think? Let us know by commenting below!