Sometimes, whether or not you had an accident or claim, the cost of your auto insurance premium rises. There are many reasons for which your commercial auto insurance premium may go high. The increasing medical costs to treat injuries, increasing auto repair costs, inflation, etc may affect the premium cost of your commercial auto insurance policy.
Even adding or removing a driver, buying a new business vehicle, moving to different location for business purpose may influence the cost of your commercial auto insurance premium. So, any changes made by you regarding your vehicles, may also change the premiums of the policy. In order to control these costs, you need to make some adjustments with your business vehicles. Below you can find some useful tips to reduce the premium cost of your commercial auto insurance policy.
Reduce the number of drivers in the list: The more people listed in the insurance policy, the more expensive the insurance premium will be. List only the one who regularly drive the vehicle, so that you can lower your premium cost. If you think any other driver needs to drive the vehicle temporarily, then insurance company will allow you to add the name for small cost.
Use inexpensive vehicles for business purposes: The more the cost of the vehicle, the more the insurance premium will be. Most companies will lower the premiums for the low-priced vehicle.
Improve vehicle security: Most companies will offer discounts if you maintain a better security to your vehicle from theft. An alarm or tracker device installed will usually help you reduce the premium cost to some extent.
Hire drivers with good driving history: Some companies insist to hire only the drivers with good or safe driving experience. Your insurance company may offer good-student discount if your driver carries a B-average, safe driving course. This may save your premium cost up to 25%.
Limit annual mileage: Reducing the mileage is the effective way to reduce premium. Also, it is not worth lying to the insurer as they easily find and verify. But if you limit your annual mileage, you can earn discount on your insurance premium.
Thus, follow the above things and make sure you get the best deal for your commercial auto insurance policy.