When you purchase a commercial vehicle, one of the first things you need to do is get the right commercial vehicle insurance policy in place.

You need to make sure that your insurance policy offers the best value and coverage for your business, while still being as affordable as possible. Some commercial vehicle policies can add up, so you must be careful when choosing one.

To help you get this right, this guide offers some of the best commercial vehicle insurance tips you should know.

Top Commercial Vehicle Insurance Questions

There’s a lot to consider when taking out a commercial auto insurance policy. To help you get started, here are some of the most common commercial auto insurance FAQs.

Do I Need Commercial Vehicle Insurance?

Any kind of vehicle used for commercial purposes needs to have commercial auto insurance coverage.

Whenever you drive a vehicle for work, you are responsible for any incidents that happen with the vehicle. So if you get in an accident and don’t have proper insurance coverage, your company may have to pay for the damages.

You will also need to have the right business auto insurance policy in place for financing a commercial vehicle – such as financing a semi-truck.

How Many Cars Does Fleet Insurance Cover?

A commercial vehicle fleet typically refers to five or more vehicles. You need commercial auto insurance for each vehicle, which is why taking a single fleet insurance policy is often easiest.

Fleet insurance can cover multiple vehicles, even if the vehicles are of different types, models, and sizes.

Does Business Insurance Cover Commercial Auto Insurance?

Business insurance and commercial auto insurance are two separate things. Business insurance covers your business for liability and covers things like your building, products, and employees.

However, you will need a separate commercial auto policy in place to cover your vehicles.

What Does Commercial Vehicle Insurance Cover?

Commercial auto insurance policies differ, with different policies offering different levels of coverage.

Commercial auto insurance covers your company, vehicles, and employees. It also offers protection to the public. This means these policies cover the costs of business vehicles, as well as additional costs your business, clients, or community might face.

The right liability coverage also ensures your company is protected from lawsuits and liability for damages. Some commercial auto insurance covers any costly interruptions that your business might face due to an accident, including legal expenses and medical expenses.

What Affects Your Commercial Auto Insurance Rate?

Just like personal auto insurance, your commercial auto coverage rate will be better if you have a clean driving record. Your commercial auto insurance cost will be most affected by having a claims-free policy.

Depending on your commercial auto insurance policy, you might also get a better rate by bundling more vehicles onto the same policy, as opposed to getting separate policies for each vehicle.

Of course, the type of vehicle, the type of business you run, and how long you have had your commercial driving license are all factors that can influence your business auto insurance rates.

How Do You Find the Best Commercial Auto Insurance Cover?

There are hundreds of businesses that offer commercial auto coverage, so it’s important to reach out to a number of them to compare quotes.

Be sure to ask each insurance provider the same questions, and understand the specific terms of the commercial auto coverage.

Before you purchase commercial auto insurance, be sure to understand exactly what the policy covers. The cheapest policies aren’t always the best. Instead, the policy that offers the best value should be based on your specific business requirements.

7 Commercial Vehicle Insurance Tips to Get the Best Deal

Your commercial auto insurance policy can be a big commitment. It’s also essential that you have a policy that covers you properly in case of an emergency.

As with personal auto insurance, there are a few things you can do to help you get the best deal. Let’s break these down.

Don’t Over-Insure Yourself

A common mistake that businesses make in their commercial auto policy is estimating more miles than they will cover. This could result in paying extra for a commercial auto policy that you don’t need.

Consider Annual Payments

If you pay annually, you can often get a cheaper commercial auto insurance quote than making monthly payments. Of course, this is an expensive investment, but it could save your business a significant amount of money in the long run.

Increase Your Voluntary Excess

As with personal auto insurance policies, increasing your voluntary excess amount will reduce your premium. Of course, the amount of voluntary excess you choose to pay will depend on your specific business situation.

Don’t Pay for Extras You Don’t Need

Business vehicle insurance policies often include various add-ons that you won’t need. Make sure you understand what all of your different insurance policies include, and know what coverage you need and what coverage is unnecessary.

Install a Dashboard Camera

Some commercial automobile insurance companies offer a better rate if you have a dash cam installed. This isn’t always the case, but installing a dashboard camera can still be useful to your business’s vehicle.

Consider an ‘Any Driver’ Policy

‘Any driver’ policies are useful for businesses that have a large pool of drivers. However, these types of policies are also more expensive.

Understand who will be driving the vehicle and make sure your insurance policy covers all possible drivers.

Employ Experienced Drivers

You can typically get better insurance rates if your drivers are more experienced and have a clean record. Hiring younger drivers, or drivers with a claim or accident history, could push up your premiums.

Conclusion

Take time shopping around for your commercial vehicle insurance, and consider a range of different policies. Most importantly, understand exactly what type of coverage your business needs, and what coverage each policy offers.

Without the right commercial insurance, your business won’t be able to operate safely, or possibly even legally. So, make sure you know what you’re getting into before committing to an insurance provider.

If you’re looking to finance a semi-truck, Mission Financial Services is the way to go. Contact us today!