If you are a business owner, you know all too well how expensive it is to be in business today. There are overhead costs, employee costs, and every single aspect of your business has to be insured which results in insurance costs. One big part of the insurance costs category is commercial auto insurance.
Many business owners do not take the time to research and understand how commercial auto insurance works and how it can affect their business. The normal thought process of a business owner is, “That’s what I pay my insurance agent for.” While this concept certainly has its merits, that way of thinking can be costly. According to www.dmv.org, one accident is enough to seriously affect the financial health of a business.
While it is not exactly necessary for you to completely understand commercial auto insurance, it is a good idea to have more knowledge than the average person. The key to getting exactly the coverage you need at the right price begins with the quote. Understanding how to get the best quote possible will save you time, money, and more importantly, will protect your business from future claims.
The Agent Makes All the Difference
The first step in getting a great commercial auto quote is finding a great agent. You need an agent who is knowledgeable about commercial auto insurance and has a general understanding of your business. Pay attention to how the agent treats you during the quoting process. Does he seem genuinely interested in helping you through the quote or does it seem like you interrupted his lunch? Keep in mind, this is the person who will stand behind you when a claim happens. You will want to be sure this is the right person to have in your corner.
Be Prepared
You will need to be able to answer certain questions about your business in order to get an accurate quote. For example, you will need to bring along your tax ID number for your business as well as a copy of your business license or corporate documents. According to Great West Casualty Company, you will need to list all owners of the business, the percentage of ownership for each, and the tax ID numbers for all owners. They say, “If you have multiple drivers, you will need copies of their driver’s licenses and vehicle identification numbers for all vehicles. If the vehicles are financed, you will need to provide the leinholder’s address.” Depending on your type of business, you may need to bring other types of information. The point is to be as prepared as possible to expedite the quoting process.
Tell Them Everything
Some business owners believe that because their business is small they don’t need commercial auto insurance. According to Bankrate.com, every business needs to be protected by insurance no matter how big or small. Therefore, it is important to tell the agent everything that your business does on a daily basis and how your vehicles are used. The agent will need to know if you cross state lines and how far a vehicle will travel on a particular job. Different business activities will require different coverage. This will help the agent determine if you require a commercial policy or a personal business policy.
Be Familiar With Discounts Offered
Many traditional discounts offered for personal auto insurance are available for commercial auto insurance. Proof of prior coverage, safety course completion, and multiple policy discounts are readily available for commercial auto policies. Also, many companies will check your credit. Therefore, protecting your credit score is a great way to keep insurance costs down. Be sure to ask your agent for discounts such as paid in full or electronic funds transfer payment plans.
Get Multiple Quotes
If you purchase the first policy that looks good, you will certainly lose out on either coverage or price. By getting multiple quotes, you will be able to compare prices as well as different types of coverage offered by different companies. This will better equip you to find the right policy that offers the most protection for your business.
