Do you have a business with a fleet of vehicles? Part of your responsibility as a business owner is to make sure all your commercial vehicles are properly insured. This can add a lot to your monthly or yearly expenses, so it’s always a good idea to learn ways to save money on your premiums while still carrying the proper coverage.

Here is more information on business auto insurance and some tips on saving money on your business auto insurance premiums to keep your costs as low as possible.

What Does Business Auto Insurance Cover?

Business auto insurance is similar to personal auto insurance as it covers repairs of your fleet—and any damage to other vehicles—in the event of a collision or other type of auto accident. In addition, many business auto insurance premiums also cover named perils, property damage, and bodily injuries. You may also want to consider taking out coverage on your employees’ personal vehicles if they drive them for company purposes so you have coverage should they get into an accident and your business is held liable.

Most business auto plans have higher liability coverage than personal plans because businesses tend to have more assets than individuals and these assets need to be protected.

1. Increase Deductibles on Your Policy

The deductible is the amount of money you will have to pay out-of-pocket should an accident or other loss occur on one or more of your vehicles. The higher your deductibles, the lower your premiums. Of course, you don’t want your deductibles so high that you cannot afford to pay them, so you likely will want to choose a happy medium. Speak with your business auto insurance rep to settle on a deductible that you will be able to cover but that will also save you money.

2. Bundle Your Insurance Policies

Most business insurance companies will offer discounts if you have multiple lines of insurance with them. If you don’t currently have your other insurance policies—such as property insurance and general liability insurance—with the same company, consider switching to take advantage of bundling discounts.

3. Compare Different Carriers

If you’re trying to decide on a business auto insurance company, make sure you compare rates of several companies before making a decision. Already have business auto insurance and want to save money? It might be time to ask around and see if other companies can offer you lower rates. It never hurts to compare rates from different carriers to try to find the best deal.  For businesses operating in Ontario, exploring options specific to Auto insurance in Ontario can provide additional savings and tailored coverage. Just make sure you are not sacrificing customer service and that you’re comparing apples to apples.

4. Keep Your Credit Score Up

Does your business have good credit? Are there any ways that you could improve it? Having good credit can often lead to discounts on business auto insurance. It’s also a good way to make sure you can qualify for loans, credit cards, and lines of credit to keep your business running efficiently.

5. Have a Safety Plan

Reducing risk and maintaining low accident rates is a good way to keep your business auto insurance rates affordable. If you don’t already have a safety plan in place, consider doing so. This may include training on defensive driving, regular maintenance of your fleet of vehicles, and regular training to make sure your drivers know how to safely operate the vehicles they regularly drive.

6. Consider Seasonal Plans

Do you have a seasonal business—such as landscaping or snow removal—that is very busy during some seasons and not during others? If so, you may be able to get seasonal plans that can save you money. Talk to your insurance rep about ways to reduce your coverage during your slow seasons to save money while still making sure vehicles are covered should something happen.

7. Pay Premiums in Full

If you pay your entire commercial auto insurance premiums up front instead of on a monthly basis, some companies can save you money. If you have the funds available to do this, ask your insurance representative if they offer discounts for paying your premiums in full.

8. Pay Via Electronic Funds Transfer

Are you currently paying your insurance premiums with checks? If so, you may be able to save on your premiums by paying via electronic funds transfer (EFT). Many insurance companies have a check processing fee that can add to your overall costs. A simple change in the way you pay your premiums can often add up to a significant savings without any change whatsoever to your coverage.

9. Ask About Commercial Drive Discounts

Does your business employ commercial truck or tow truck drivers who need Commercial Driver’s Licenses (CDLs)? If so, you may be able to save on your premiums. Talk to your insurance rep about these possible discounts if this applies to your business.

10. See if Your Insurance Company Offers an Experienced Business Discount

Some insurance companies offer discounts to their clients who have been in business for more than three years. Ask your rep if these are offered through their company. If you’ve been in business for more than three years, you have drivers with CDLs on staff, and the company you currently work with does not offer discounts for these two variables, you may want to contact other insurance companies that offer discounts to save on your premiums.

Choosing the Right Business Auto Insurance

If you have a fleet of vehicles, one of your larger expenses is business auto insurance. To make sure you’re getting the best rates, consider putting a safety plan in place, maintain a good credit score, and consider bundling and increasing your deductibles. It’s also a good idea to compare carriers to see if you’re getting the best rates. Remember, though, that you should never sacrifice customer service for cost savings as working with a professional company is the best way to ensure your team is taken care of. Looking for a new company? Ask around to other business owners to see who they work with, read online reviews of business insurance companies in your area, and look for a company that offers the types of discounts your business qualifies for.