How To Save Money on Your Business Auto Insurance

With the economy still trying to recover from the worldwide recession, businesses around the country are continuing to look for ways to cut expenses. If your company owns or leases cars, you are probably paying thousands of dollars a year in car insurance. Spending a little bit of time to find inexpensive auto insurance can be a great way to save your business money without sacrificing coverage. Here are some helpful tips to help you get the policy you are seeking.

If it has been awhile since you last received an auto insurance rate quote, chances are you are paying too much for your insurance. Your business has almost certainly changed in the last couple of years and so too should your insurance coverage. If you have added or removed business vehicles or if your driving habits have changed, you will need to get an updated quote.

If you didn’t shop around for a competitive rate the first time around, now is the time to do so. Each insurer treats businesses differently, so you are likely to get widely varying quotes, which makes it important to get as many as you can. Several websites allow you to compare rates from a variety of insurers quickly and easily.

Also consider raising your deductible. If you have a fleet of delivery vehicles on the streets every day, then you probably want to keep your deductible low, as accidents are more likely to happen. However, if your company owns or leases a car that is only used infrequently, you would be able to save a substantial amount of money by increasing your deductible to $500 or even $1,000. If the car gets into an accident your business would have to pay more, but this can often be more than offset by the lower car insurance rates you will be paying.

If you are thinking about adding a car to your business, be careful which model you choose. Oversized SUVs may help your company make a statement, but they will often cost a fortune to insure. Stick with recent model compact cars that have the latest safety and anti-theft devices installed and you will have a much better chance at securing a reasonable auto insurance rate.

Even small differences in car models – such as the color or the number of doors it has – can make a big difference in the cost of your policy. The Highway Data Loss Institute maintains records of the insurance costs of every vehicle make and model sold in the U.S. It’s a good idea to check their database to see how much it will cost to insure the car you have your eye on before buying it.

Another tip to save on your insurance costs is to keep your policies with the same company if possible. If you maintain business liability coverage with an insurer, be sure to check if they provide auto insurance policies as well. Carriers often provide significant discounts if you keep all your business with them.

Running a business is hard and trying to reduce expenses without sacrificing quality is even harder. But spending just a few minutes comparison shopping for a new car insurance policy could save your company hundreds if not thousands of dollars a year.

How To Save Money on Your Business Auto Insurance