A Commercial Automobiles Insurance Policy is a bit different from personal coverage. After all, when a customer drives for work, they spend more time on the road, go places they wouldn’t ordinarily go, and drive vehicles they wouldn’t ordinarily drive. There are different risks involved in commercial vehicle usage, and the entire company can be at risk if something happens. Here, readers can learn how insurance companies determine what they’ll pay for commercial coverage.
Employee Driving Records
Even if the business owner has a spotless driving record, they’ll pay a high cost for commercial coverage if they hire workers who commit traffic offenses and cause accidents. Insurers look at everyone who will use commercial vehicles to determine the level of risk, and some workers will receive additional scrutiny.
The Nature of the Job
The more miles a vehicle travels in one day, the more likely it is to get into an accident. If a company offers long-distance delivery services, they’ll likely pay more for a Commercial Automobiles Insurance Policy than a company that only makes in-town trips.
Brand new vehicles with all the latest add-ons are more valuable than old, run-down vehicles. Therefore, it costs more to insure them each month. If a company’s vehicles are popular with thieves, the premium will be higher. Additionally, if a company leases or rents vehicles, they’ll pay more in the form of comprehensive coverage. Conversely, a company’s vehicles can yield savings if they’re equipped with features such as air bags, antilock brakes, and anti-theft systems.
Most business owners are unaware, but trailers used for work need separate insurance. If a company uses utility or horse trailers, a separate policy is required. Luckily, most commercial insurers provide this type of coverage at an additional cost.
The higher a company’s coverage limit, the more a policy will cost. Though it can be tempting to save by cutting coverage, the practice puts the entire business at risk every time an employee drives. If there’s an accident, the company can face a lawsuit. Before signing a contract with visit us website, the company owner should ensure there’s enough coverage to protect the business from financial disaster.