Do you know which factors affect your commercial auto insurance rates? Even if you know which factors dictate your personal auto insurance rates, you might not understand exactly how your commercial rates are calculated, as the two do overlap, but they are not entirely the same. Here are some of the factors that affect your commercial auto insurance rates specifically:
1. The driving records of your employees
Because it is ultimately your employees who will be driving the vehicles that you have ensured, their driving records will affect how much you end up paying. They are the ones creating the risk, so if they are good drivers with few or no accidents on their record, then you will have lower rates. If they are considered risky drivers, because of traffic violations, accidents, or DUIs, your rates will increase.
2. What type of driving the insured vehicles will be used for
Some commercial vehicles are rarely used and therefore need less insurance, as they are less likely to be damaged. Other commercial vehicles need more coverage, because they are driven every day and are more likely to be damaged. What exactly these vehicles do under your stewardship will affect your rates.
3. What type of vehicles you use
If you buy the best and newest commercial vehicles, you are going to see higher insurance rates, because these vehicles are worth more than an older model. You’re also likely to pay more if the vehicles you use are more likely to be stolen.
4. How much coverage you need
As with any insurance, the higher your coverage limit, the more expensive your insurance bill is going to be very month. While you might want to choose less coverage in order to cut your expenses, you will still want to make sure that you are completely covered for all of the activities that these vehicles will potentially be doing. The last thing you want to do is leave yourself without enough coverage.
5. Your deductible
Again, as with most insurance policies, your deductible is going to significantly affect how much you end up paying each month. A lower deductible usually means higher monthly rates, while a higher deductible means lower rates, but more costs you will be responsible for covering in the event of an accident.
