Questions to Consider Before Purchasing Commercial Auto Insurance

One of the most important insurance decisions for businesses or people who use their vehicles for work these days is buying commercial auto insurance. Whether it is one or several vehicles being used, a person will have to purchase insurance for all of them. There are several important issues to consider before choosing a policy. The following paragraphs outline some questions that every buyer should consider for his or her own needs and why these issues are important.

What Defines Commercial Vehicle Usage?

While some people may not use their vehicles frequently for commercial reasons, personal policies still exclude using them for commercial use. In addition to this, every policy has a definition of what is considered to be commercial use. This means policyholders must be clear about the differences to avoid having their claims denied.

What Strategies Will Reduce Commercial Vehicle Premiums?

There are several options for lowering premiums on individual or fleet policies. These depend on individual circumstances and insurers’ offerings.

How Many Vehicles And Drivers Does The Company Need?

If an insurer offers commercial coverage, the available options may be distinguishable by the number of vehicles and drivers needing insurance. If there are multiple vehicles and drivers, fleet coverage may be the wisest option. Rates vary depending on insurers and how they base their prices. However, the number of vehicles and the class they fall under both play important roles in determining pricing. In some cases where there are fewer vehicles, individual coverage may be best. Discuss concerns with an agent and compare policy options before choosing.

What Type Of Vehicle Is Being Leased Or Purchased?

Sports cars and luxury cars may seem like classy statements that earn people respect, but it is important to remember the cost of insurance. Since insurers look closely at the types of vehicles chosen, selecting a mid-size sedan with several safety features may be a smarter option.

What Are The Drivers’ Records?

Individual drivers’ records are considered closely. If they have multiple claims on their records, this will cause premiums to increase. It is important to be aware of all drivers’ current records. When there are injuries or accidents, it is crucial to make employees understand they must report them immediately.

What Kind Of Deductible Is Affordable?

The amount a person is willing to pay for a deductible will also affect the premium amount. As a rule, higher deductibles mean lower premiums, and lower deductibles mean higher premiums.

Are There Anti-Theft And Safety Devices In The Vehicle?

Theft is still one of the most important concerns in urban settings. Insurers will consider several issues when insuring a vehicle. The following are included: – Whether GPS or alarms are included in the vehicles. – The business’ location, because many urban areas are not treated the same. For example, places with higher crime rates will lead to higher premiums due to increased theft risks. – What kind of air bags, cameras, beepers and other safety features a vehicle has. – Whether or not GPS and alarms are included in the vehicles.

Will State And Federal Laws Impact Coverage?

Specific vehicles and the types of items they typically transport will be subject to federal laws. In some states, they will also be subject to additional state-level laws. It is important to review legislative requirements on both levels before shopping for insurance to understand how they will impact individual circumstances.

There may be other questions that arise when researching or considering this type of coverage. It is essential to have, so call ACBI at 203-259-7580 to discuss any concerns and make the process easier.


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