For the small business owner who must deliver goods and services to clients, having commercial car insurance should be a no-brainier.
But don’t be surprised if you come across the small business owner from time to time who either attempts to get by without a commercial car insurance, or figures their business is covered through a personal auto insurance plan. The end result can be quite devastating to say the least as the following will show:
You own a small printing business and hire part-time help to deliver business cards and other products for you. The driver is in an accident while delivering for you. They are not hurt, but the driver they hit complains of injuries and decides to sue your business. Without the proper commercial car insurance plan in place for your small business, you could be looking at sizable financial losses. With the proper plan in place, you are covered for repair expenses related to property damages and medical expenses for injuries.
While it is understandable the small business owners are faced with many different expenses, skimping on auto insurance should not be considered.
If you are a small business owner in search of cheap car insurance, there are a number of different options out there available to you. Keep in mind the following:
* Shop around - Just as you would for your own auto, homeowners or life insurance coverage, shop around for car insurance protection for your small business if you have delivery vehicles and/or employees using their own cars to make deliveries or client visits for you. Gather anywhere from 4 to 6 car insurance companies online, looking at their plans and prices, customer service record and financial stability;
* Should I bundle my coverage? - You may just it is easier to go with your current agent to get car insurance protection for your small business, but don’t. Yes, many insurance companies will offer you discounts when you have all your coverage needs with them, but there is always the chance you can get a better deal going with someone else. Don’t feel pressured into just going with your current agent for your business car insurance needs;
* Look at a higher deductible - Once you have your insurer decided, consider going with a higher deductible. With the higher deductible, you can save money on your premiums. The flip side of this decision is making sure you have enough funds in reserve to pay a claim if necessary;
* Promote safety when you hire and afterwards - Having an employee or employees make deliveries or client calls for you means placing much of the responsibility on yourself. Make sure you hire workers with good driving records for starters. You should also review safety tips with your drivers from time to time, reminding them that a clean driving record is of utmost importance. You can also save some money on your car insurance premiums if your vehicle or vehicles have safety features like anti-lock brakes and airbags. Safety should never take a backseat in your business;
* Be smart with your scheduling - Whether you have workers delivering goods or meeting clients to talk business, schedule the appointments wisely. Along with saving money on high gas prices, remember that the more miles placed on the vehicle the higher premiums you will pay. If you have a number of clients to meet with during a business day, try and coordinate the trips so that you are not making an individual run each time. Insurers consider it a greater risk too when your driver or drivers travel further because the chance of an accident goes up;
* Only file the major claims - Hopefully you never have to file a claim on your commercial car insurance policy, but only file when it involves a major claim. In turn, paying for an accident out of pocket will end up saving your business money by keeping the premium lower.
With all you stand to lose as a small business owner from one serious auto accident involving your company, don’t drive off uncovered.
With 23 years of experience as a writer, Dave Thomas covers a wide array of topics to help small business owners succeed.
