Every single vehicle—whether personally owned or owned by a business—driving on American roads is required to be insured. There’s no getting around insuring your work pickups or delivery vans. But just because commercial auto insurance is a necessity doesn’t mean you can’t cut back on the cost. We’ve compiled a few tips to help you save some cash.
Increase the Deductible
The deductible is the predetermined value that you’re responsible for paying before your insurance provider begins paying out the rest of the claim. Essentially, the more risk you take on in the form of a higher deductible, the less your premiums will be. Your independent insurance agent can help you determine the amount that provides ideal premium savings, without breaking the bank if an incident were to occur.
Set Up Less Frequent Payments
With every premium payment, you may incur processing fees. These fees, albeit low in value, do add up over time. Paying larger premium installations less frequently results in fewer processing fees. Rather than paying each month, you may find it in your interests to pay biannually or even annually. In fact, some insurance providers may offer your business a discount for paying your premium in full each year.
Another way you may encounter processing fees is paying by check. However, if you opt to pay via an electronic funds transfer (EFT), these fees may be waived. When paying by EFT, the funds will be deducted from the linked bank account on a predetermined date. You can choose to submit payments manually each time they’re due, or you can opt for automatic payments (which also removes the risk of late fees since you no longer need to worry about remembering to pay on time).
Ask for More Discounts
Though they may not be directly offered to you, many insurance providers do offer a variety of discounts. Some of these may include:
- Experienced business discount: offered to businesses with at least three years of successful operations
- Experienced commercial driver discount: offered to businesses that hire drivers with commercial drivers’ licenses and clean driving records
- Bundling discount: offered to businesses that own several policies from the same insurance provider
Don’t forget to ask your agent if your business qualifies for any discounts!
Find out how much you can save. Call Insurance Providers at (417) 862-7700 for more information on Springfield commercial auto insurance.