Cutting the cost of small business owners’ auto insurance
If you’re like most small business owners, chances are you’re always on the lookout for a way to control and reduce overhead costs. So, if the nature of your business requires you to insure one or more company vehicles driven by staff, there are several effective strategies to manage the associated cost. It starts with how you pick your drivers, and doing what you can to manage collision risks – steps that can help you keep your insurance costs down.
- Driver screening
Beyond the obvious step of ensuring your employee(s) have the proper class of license to be operating your company vehicle, taking the extra step of formally screening your drivers makes a lot of sense. Check accident history, overall driving record, number of years licensed and their experience driving similar types of vehicles. Conviction free drivers are generally entitled to a discounted rate while drivers with two or more minor convictions are subject to a rate surcharge.
- Adjusting coverage
Adjusting the policy for your specific business needs – with help from your broker – has the potential to save you money too. Just like with your private vehicle, increased deductibles can help lower your premium. If your company vehicle is older, you can also weigh the option of forgoing collision coverage if the actual value has significantly depreciated.
- Hire experienced drivers
Hiring experienced drivers is the first step to maximizing the success of your business. Formal guidelines establish acceptable driving qualifications for any employee who regularly drives company vehicles.
- Loyalty to your insurer
Like any other service you need to stay in business, you might want to shop your insurance around from time to time. Most insurers want to work with you by rewarding your loyalty, so the longer you stay with your insurance provider, the higher the loyalty discount with them will be.
- Deal with one company
Business owners with varied insurance needs will usually benefit from placing both their auto and property casualty insurance with one carrier due to a multi-line discount. This saves money and provides the convenience of dealing with the same insurer.
For more information on measures your small business can take to reduce insurance costs, contact one of DPM Insurance Group’s licensed brokers or CSRs for a no obligation policy review and quote.
Source: Insurance Business Canada
