Commercial auto insurance covers damages to vehicles, medical expenses, and damage to goods and property of other individuals too. There are many kinds of commercial auto coverage some of which even include non-owned vehicles that are used for business purposes like vehicles owned by employees.
Factors that affect commercial auto insurance are:
1. The state laws that are applicable where you run the business and are located.
2. Ownership of vehicles and their use; whether they are used for transporting people or goods and whether they carry hazardous materials. Most commercial auto insurance policies have greater liability limits that personal auto insurance coverage.
3. Commercial auto insurance rates vary depending on type of vehicle owned or leased and whether or not safety devices like anti-lock brakes, air bags, and seat belts are installed.
4. Installation of anti theft devices like alarm systems, global positioning systems, state of art locks and etching of engine number on windshield etc will lower commercial auto insurance premiums.
5. Maintenance of vehicles and parking in indoor facilities will also lower premiums. Vehicles badly maintained and parked on the street attract higher premiums as also location of the business in what is deemed to be an unsafe district.
6. If where you live is prone to snow storms, hurricanes, earthquakes and so on then you will have to pay higher premiums for commercial auto insurance.
7. Cost of insurance will also be a reflection of your previous insurance claims.
8. The most significant factor is of course the extent of coverage you seek. The higher the coverage the greater the premiums you will pay. Choosing a higher deductible can of course lower the premium. According to experts higher liability limits will protect your business and personal assets.
Commercial auto insurance should be bought from a reputable insurance company, one that has a good rating with rating agencies. As a business person, you must make the effort of doing a background check on the insurance company you want to purchase commercial auto insurance from. Check on the World Wide Web for advice and guidelines. Use online tools to get comparisons of various products and policies. Meet an insurance expert and take his advice. Consider buying insurance from the same company that covers your home, health, and life. Insurance companies offer better service and rates to people they are familiar with.
Understand the coverage and service options available for your kind of vehicles and business. This will enable you to take informed decisions that will protect you and your business comprehensively. Find out what will get you better rates and keep handy documents like your company's financial statements and your credit ratings. Make provisions to pay commercial auto insurance premiums on time so that the coverage never lapses. Learn how to manage insurance policies online it will save time and money.
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