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Before You Buy Commercial Auto Insurance

Before you buy commercial auto insurance, there are certain things you should think about and go over as a driver and a potential policy holder. Commercial policies are very useful and extremely important for drivers to ensure that they will be covered in the event of an accident or other claim. If there is any question as to whether you need commercial coverage or you can get away with a personal policy, either find out the answer for sure, or if this is simply not possible, err on the side of caution and opt for the former to be certain you'll be covered if you get into an accident or another claim situation arises.

Important Aspects of Business Insurance

Commercial auto insurance is one of the most critical areas of a company's business insurance package. Some people who run small businesses have a hard time understanding whether they can still carry a personal policy. They think that the question may hinge on the type of vehicle they drive or even the industry they're in. But the truth is that there is little room for any gray area as far as auto insurance for business is concerned. It is really quite simple. If you use a vehicle for business purposes, it needs a commercial policy. If there are multiple vehicles in use by the business even if they are privately titled, they require a business policy.

Once you have that question answered, the next logical place to turn your attention is to the ways you can work to make the policy you carry as efficient and effective as it can possibly be. Before buying a business auto policy for a vehicle or group of vehicles, ask some important questions and base your coverage decisions on the answers to these questions. To come out with protection that makes sense given the specifics of your circumstances, be sure to get the information necessary to make good choices.

Multiple vs. Single Driver Policies

The first issue will deal with the number of drivers who will be insured on the policy. Going hand in hand with that number, of course, is the number of vehicles to be insured. These are pertinent questions because business policies for automobiles can get pricey and there are ways to save with fleet discounts and the like. The definition of a fleet is not universally recognized; it usually has to do with the number of vehicles owned by the business. Each insurer in your home area may have different ideas on how many cars care required to make a fleet. Ask the insurer or insurers you're working with on pricing about their fleet programs and find out whether you might be able to consider some sort of fleet option. Some such options involve self insurance done in one of multiple ways, so it is good to get all the best options out in the open and understand what all the different choices are.

Policy Definition of Commercial Use

Another pertinent question to ask is the policy definition of commercial use as expressed by each insurer. This definition can vary just like the definition of a business fleet. It is important to read through the definition of business or commercial use to determine that the way you use your vehicle or vehicles is consistent with this definition. There is always the possibility that a personal policy will suffice, so it's worth it to read up on this definition. Of course, it bears mentioning that if an individual has a question like this, it probably means that a vehicle is being used for commercial purposes; and if this is the case, again, it's a no brainer that a personal policy is insufficient.

Save Money on Commercial Insurance

Of course, when most drivers examine these policies, it is with the understanding that personal plans are not going to cut it. With this in mind, maybe the most important question to ask of an insurer is how you can save money on your coverage. Take a look at all the ways premium costs can be lowered. There are many ways to save, some of which are not so obvious to most people. Business location is a huge factor in the determination of premiums, as is the driving record of any covered driver. Save money by only hiring drivers with solid driving histories.

The types of vehicles being insured can also be a source of savings. Find out which ones will save the most if you're contemplating a business automobile purchase. Raise deductibles to lower rates on comprehensive and collision especially. Install safety and anti theft devices in vehicles to qualify for safety and security discounts. Before you buy commercial auto insurance, find out how you can save more money.

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