The primary step in finding how to lower your commercial vehicle insurance is to learn how the insurance premiums are calculated. The premiums depend on various factors. But, the top two elements will always be your history of claims and the driving history of your drivers. If you dig further, these two factors can also be broken down into various elements on which your premium depends. It can be broken down into your deductibles, type of vehicle, the frequency of vehicle crashes, number of accidents occurred, previous medical costs, vehicle repair costs, and lawsuits filed if any. Let us take a quick look at some of the easiest ways to lower your commercial vehicle insurance.
Choose The Vehicle Type Wisely!
Even if your business owns just one vehicle or a large fleet of vehicles, still you have to take extra care of the type of vehicle you choose. The style, type and make of the vehicle have a direct impact on the premiums of your vehicle. Just like personal auto insurance, commercial auto insurance is also affected by choice of vehicle. It is better not to choose expensive vehicles for commercial purposes. More expensive your vehicle is, more will be your premiums too. The insurance premiums also depend on the age of your vehicle, the cost of repairs, availability of spare parts and maintenance costs. Lower the costs, smaller will be premiums.
- Classification And Function Of The Vehicles Matter!
The insurance providers often use the function and classification of vehicles to decide the risk elements and premium amounts. Vehicles like tractors, trailers and trucks are heavyweight vehicles and hence can be severely damaged if it gets involved in an accident. It will also be challenging to navigate these vehicles in heavy traffic conditions.
The Way Your Vehicle Is Used Can Affect The Rates!
The insurance premium rates can also depend on the way you plan to use your commercial vehicle. Here are the three common uses of vehicles:
- Service uses- It includes transportation of people, materials and equipment to and from work sites.
- Retail uses- It includes picking up goods from one place to another or delivery services that deliver products to residences.
- Commercial uses- All other commercial transportation needs other than retail and service are included in this.
Based on the risk elements associated with each transportation use, your premium amounts can vary. When the vehicle transports heavy objects that can cause accidents more, the premium also increases correspondingly. Your insurance provider can also change your premiums by the regions and states in which they travel often. For instance, a vehicle which travels in rural areas has less risk when compared to vehicles which travel in busy streets during the rush hours. Hence, always keep in mind all these factors before choosing a vehicle and its mode of operation.
Select Better Drivers, Lower The Premiums!
Commercial vehicle insurance rates also depend on the driving history of drivers you choose. Hence, always make it a point to check the background of drivers you choose for your vehicles. Even if it is for a short period, still you need to ensure that the person behind the wheels is a responsible driver. You can also periodically check the driving efficiency of your drivers and try improving their efficiency. This will help in lowering the insurance rates. The driver’s previous history, instances of drunk driving, rash driving and the way they behave with the public can all affect your insurance rates. Hence always choose better drivers to reduce your insurance rates.
Use Technology To Reduce Rates!
Installing technologically advanced systems in your vehicle can help in lowering the insurance premium rates. It can also assist in providing proper evidence about accidents. You can try installing camera technologies and global positioning systems to track the vehicle. These technologies are becoming more and more popular every year. Hence, they are not as costly as they were before. You can also consult your insurance provider to know which all technology adaptations help in lowering vehicle insurance rates.
Make Use Of Security Systems
By installing security systems, you can lower your commercial vehicle insurance. Set up burglar alarms, security cameras, devices which warns about collisions, etc. help in reducing chances of accidents and thefts. Thus, it reduces the risk elements, and correspondingly, the insurance rates also decrease.
It is always better to send some extra money first to set up proper fences, secure locks and lighting systems to secure your vehicle. In case an employee takes the vehicle home, stress on the safety element to the employee.
These are some of the factors that can help in lowering the commercial vehicle insurance rates. The idea is to bring down the risk element. If the insurance provider does not see you as a potential risk, then obviously the standards will reduce, and you will have to pay only lesser premiums. Hence, do everything possible to minimise risks.
