5. The type of vehicles you own
When purchasing commercial auto insurance, it is important to consider the type of vehicles you own. This is because different types of vehicles require different types of coverage. For example, a semi-truck will require different coverage than a delivery van or a passenger vehicle used for business purposes.
The size and weight of your vehicles will also come into play as these factors can affect the risk of accidents and the severity of damages. Larger vehicles tend to cause more damage in an accident and therefore may require higher coverage limits.
Additionally, the way your vehicles are used can impact the coverage needed. If your vehicles are used for transporting hazardous materials or for towing, you will need specific coverage for these activities.
It is important to accurately disclose all types of vehicles you own and their intended use to your insurance provider to ensure you have the right coverage in place. Failure to do so could result in denied claims or gaps in coverage when you need it most.
6. Who will be driving your commercial vehicles
One important aspect to consider before buying commercial auto insurance is who will be driving your commercial vehicles. It’s crucial to understand who will be operating the vehicles and ensure they are qualified and licensed to do so.
Commercial drivers should have a clean driving record, be properly licensed, and have experience operating the type of vehicle they will be driving. It’s important to check their driving record to ensure they have not been involved in any accidents or received any violations.
Additionally, it’s crucial to ensure all employees who will be driving the commercial vehicles are properly trained in safety measures and procedures. This includes defensive driving techniques and proper vehicle maintenance.
It’s also important to consider the number of drivers who will be operating the vehicles. Depending on the size of your business, you may have multiple drivers or just a few. You will need to ensure that each driver is covered under your commercial auto insurance policy.
Overall, it’s important to be diligent in ensuring that all drivers are properly trained and licensed, and that they have a clean driving record. This will not only help prevent accidents and violations, but it will also help keep your insurance premiums low.
7. Your driving record and history
One of the most critical factors in determining the cost of your commercial auto insurance is your driving record and history. Having a clean driving record will help keep your premiums low, while having accidents or traffic violations on your record may increase your rates significantly. Therefore, before buying commercial auto insurance, it’s essential to review and understand your driving record and history.
If you or your drivers have a history of accidents, tickets, or other driving violations, it’s essential to take proactive steps to address any issues. This could include taking a defensive driving course, improving driving habits, or even hiring safer drivers. In addition, if you’re purchasing commercial auto insurance for a fleet of vehicles, you should have a policy in place for monitoring and enforcing safe driving practices among your drivers.
Keep in mind that insurance companies will review your driving record and history when determining your premiums, so it’s essential to be truthful and accurate when providing this information. Don’t try to hide or downplay any accidents or violations, as this could result in your policy being canceled or your claims being denied in the future. By being transparent and upfront about your driving history, you’ll be better positioned to get the coverage you need at a fair price.