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5 Tips for Choosing Commercial Auto Insurance

Insurance is a major expense. So it’s important to get the right coverage and the right insurance company.

The wrong insurance coverage can leave you short should you need it. The wrong insurance company will provide subpar service and leave you fighting to get what you paid for.

But selecting the right types of insurance for your business isn’t hard if you pay attention to a few details. Read on for five tips that can help you pick the right commercial auto insurance company.

1. Compare Different Coverage Plans

It is important to understand all the coverage options offered by each commercial auto insurance company. Do extensive research to make the best decision.

Consider the types of coverage, limits, exclusions, and premiums offered by different insurers. It is to determine which offers the best protection.

2. Understand the Required Levels of Coverage

Consider the types of vehicles that you need to cover. This means evaluating the age and value of each vehicle and determining if a basic policy or a more comprehensive policy is needed.

Make sure to check any state or local insurance requirements for specific types of businesses. Consider the types of driving that the vehicles will be used for, such as delivery or towing services, and assess if you need special coverage.

3. Find the Right Deductible

A deductible is the amount of money you will pay out of pocket if you have a claim. It’s a good idea to consider a higher deductible if the nature of your business involves high-risk vehicles, such as delivery vehicles or commercial trucks.

Choosing a higher deductible can often help reduce the cost of the premium. If you only have a few vehicles and operate a low-risk business, a lower deductible might be more suitable.

4. Know the Essential Riders

Before purchasing a policy, it is essential to understand what risks your business may encounter. Knowing the risks associated with your business will help you determine which riders you need in order to adequately protect your company.

For example, liability insurance is an important rider that will cover costs associated with medical bills, property damage, and legal costs if you should ever be involved in an accident. Collision and comprehensive coverage will protect your business’ vehicles from theft, accidents, and natural disasters.

5. Shop Around for the Best Rate

It is important to get many quotes from different companies to ensure you get the best rate. Be sure to research the companies and read customer reviews to ensure the provider is reputable. When getting a quote, prepare your vehicle information, driver information, and a list of businesses and drivers that will be insured.

Look for discounts offered by the insurance company, such as multiple drivers, improved safety measures, or fuel-efficiency discounts. These could also be bundling policies, being a first-time customer, and using their various payment plans.

Choose the Best Commercial Auto Insurance

Selecting the best commercial auto insurance can be a difficult and daunting task, but it doesn’t have to be. With the right coverage, companies can be sure they’re protected.

Take the time to research your company’s needs and pick the right policy for the job. Speak to an insurance agent today to learn more about commercial auto insurance.

If you found this article useful, be sure to check out some of our other business-related blog posts.

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