There are many things that you can do to save money on your commercial fleet insurance, but there are just as many things that you should not do if you want to take care of your fleet insurance needs truly.
This article will highlight some of the most common mistakes that people make with their fleet insurance and explain why these mistakes are damaging your company’s bottom line and your commercial fleet insurance policy.
If you avoid these mistakes, you can be sure that you are taking good care of your business and getting the best deal possible on your commercial fleet insurance!
Don’t Forget to Budget for Upgrades
When budgeting for your business vehicle’s insurance, you should include any potential expenses that may pop up in the future. For example, if you are working with a newer model car, there might be some technological upgrades in a year or two that could prove useful.
These things can add up over time and could result in unexpected costs for you—so it is best to prepare for them by including some extra funds in your budget!
You never know what upgrades your vehicle will need in the future. It’s also good to remember that smaller vehicles usually require less fuel consumption than big rigs, but when fuel prices go up, they do so just as much as a large truck.
Don’t Cut Corners
It can be tempting to look for ways to save money on insurance. But it’s important not to cut corners when it comes to your fleet vehicles. For example, if you buy a smaller deductible than recommended by your agent, you might be tempted to make up for that savings by short-changing other coverage items.
But doing so is a risky strategy since many risks are correlated—that is, they tend to increase and decrease together. If your car breaks down or gets into an accident in an area of town where crime is high, that could mean increased costs due to vandalism or theft.
So even if one part of a policy seems expensive, it’s often more cost-effective to get all parts of your coverage from one provider.
Don’t Get on A Long-Term Contract
This is very tempting, but it’s usually not in your best interest. Most companies have three or four tiers of coverage to choose from, and these are almost always all on month-to-month plans.
They don’t try to lock you into a three-year plan because they know that most businesses don’t stay that stable over time, so they want to make sure you have an option if you need a different level of coverage in 3 months or three years.
Also, remember that going with a long-term contract will often mean buying additional policies from other insurance companies if you want certain protection (like identity theft protection), so it might cost more than just signing up for those extra policies upfront.
Don’t Hire an Underwriter Who Is Too Cheap
When searching for a commercial fleet insurance underwriter, ensure they’re not too cheap. A quality company will offer you insight and expertise on your fleet insurance policy.
From claims to prevention, they will support you throughout your term and when it comes time to renew with them.
When choosing an underwriter, ask about their experience and credentials to ensure that you work with a reputable and experienced professional who can truly help your business grow.
Working with an experienced underwriter is also important because they can be there every step of the way through claims procedures so that any negative issues do not impact your business’s stability.
Don’t Neglect the Basics
The most obvious way to save money on your fleet insurance is to look at your existing policy. Are you insured against all of your vehicles? Are they adequately covered? What about personal property coverage and bodily injury liability?
If you haven’t reviewed your commercial fleet insurance in a while, you may be surprised by what types of damages are not covered or other gaps in coverage. Always make sure that everything important to you (such as business equipment) is adequately protected before making any changes.
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