Tips to Save Money on Your Business Auto Insurance

Business auto insurance is a must-have for anyone using a vehicle for commercial use. But just because you have to have it, that doesn’t mean that you don’t want to find a way to spend less on your business insurance policy. Here are some tips that could help you save money on your business auto insurance policy without sacrificing your coverage.

• Higher deductibles: It is no secret that with higher deductibles, your premiums will be lower. It is important that you review your budget annually and set deductibles that you can afford to pay. As your revenues increase, it is possible that your deductibles can too. But make sure that you don’t get too aggressive with your deductibles and that you can afford those you set. Otherwise, you could be placing yourself up for more financial damage than an expensive premium would create.
• Lower your limits: Keep track of the value of your fleet and lower your limits accordingly so that you can keep your business auto insurance policy affordable. Your vehicles lose value every year and, if they are driven often, may lose value at a faster rate than a normal automobile. There is no point in having a high limit if your cars aren’t worth that much, unless you are looking for replacement value instead of actual value. When it comes to medical and bodily injury coverage, be sure not to lower your limits too aggressively since these costs tend to increase over the year rather than decrease.
• Review your coverage annually: When you simply renew the same insurance policy every year without reviewing it, you could be missing changes that have happened in your business and that should be reflected in your policy. For example, it is possible that you have too much insurance on company cars that have lost value over the years or, maybe you are covered for incidents that you and your drivers have little risk in encountering. It is important to review all these factors every year so you can stay on top of inefficiencies and streamline both your policy and your premium.
 

Continue reading "Tips to Save Money on Your Business Auto Insurance" or contact us at (225) 490-5678 to learn more about Baton Rouge business auto insurance.