Important Facts to Know While Buying Commercial Vehicle Insurance

Every business that owns vehicles needs commercial auto insurance. Due to the vast number of different businesses using vehicles, a broad range of insurance plans is available to address their unique risk exposures. Here are the five most important points about commercial vehicle insurance that will guide you in making appropriate coverage choices.

1. Commercial Auto Insurance is a Mandatory Requirement

   If your business runs and owns vehicles, you must carry commercial auto insurance in your state. The main requirement is to carry a certain amount of liability coverage to pay for bodily injuries or property damage that you cause with your vehicle. Each state has its specific requirements. Basically, you need auto liability coverage to drive any vehicle – whether for personal or business purposes.

2. Do Your Research Before Settling on a Policy

   Whenever you set out to purchase new business vehicles, make sure to estimate the resulting insurance costs. Examine your state’s requirements for commercial auto insurance, then begin your search for an insurer.
   Compare auto plans by collecting details about monthly premiums, deductibles, and coverage limits. Ask each insurer about the degree to which they can customize your policy. Remember that each industry has a certain set of risks that affect insurance rates. Understand your risks and what you can do to lower them.

3. Beware of Insurance Offers That Look Too Good to be True

   You may need an industry glossary to understand what insurance marketing is communicating to its target audience. If the offer sounds too good to be true, it’s best to move on. Another red flag is if your prospective insurer gets plenty of negative reviews.

   The world of insurance companies is vast as it’s a mix of reputable players and scammers. The reputable players have long track records and are easy to research, whereas scammers typically don’t have much track record or easy access to company information.

4. Your Drivers Can Affect Your Rates

   The drivers you hire matter because their driving records can directly impact your insurance rates. If you hire a team of drivers who have been involved in multiple accidents and have a stack of speeding tickets, you can expect to pay higher insurance rates. Nonetheless, if they all have clean driving records with minimal claims, you will likely pay lower rates.
   Once you hire drivers with good driving records, train them on how to respond to an accident appropriately. The more your drivers understand how your commercial auto insurance policy works, the more prepared they will be to handle reporting an accident, thus contributing to lower costs.

5. It’s Best to Record Everything!

   If one of your drivers gets involved in an accident, they should take photos or videos of the crash with their smartphones. It’s best to take multiple photos from various angles. The more data you can provide your insurer about the collision, the better position you will be in to support your claim.

How McCarty Insurance Can Help

Managing insurance costs is part of maximizing financial stability. At McCarty Insurance Agency, we will help your business find the right commercial vehicle insurance that fits your business model. Contact us today to learn more.