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.

  1. 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.

  1. 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.

  1. 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.

  1. 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.

  1. 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

Blenheim Office

24 Marlborough St. N., Box 479
Blenheim, ON N0P1A0

Phone: 519-676-8159
Fax: 519-676-0020

Chatham Office

250 St. Clair St.
Chatham, ON N7L 3J9

Phone: 519-352-4343
Toll Free: 1-800-561-4949
Fax: 519-352-6484

Essex Office

29 Talbot St. N, Box 69
Essex, ON N8M 2Y1

Phone: 519-776-6457
Fax: 519-776-7400

Harrow Office

65 King St. W., Box 790
Harrow, ON N0R 1G0

Phone: 519-738-2277
Fax: 519-738-2279

Tilbury Office

59 Mill St. E, Box 1239
Tilbury, ON N0P 2L0

Phone: 519-682-0202
Fax: 519-682-2391

Wallaceburg Office

403 Wellington St.
Wallaceburg, ON N8A 2Y2

Phone: 519-627-1777