Tips For Lowering Your Commercial Car Insurance
If you are looking for affordable commercial auto insurance, don't restrict yourself to what the insurers can offer you (such as discounts). Instead, you should also explore what you can do to deserve those lower rates. With that in mind, here are three steps you should take to lower your commercial auto coverage rates:
Screen Your Prospective Drivers
The insurer will use your drivers' histories as one of the factors in calculating your rates. Therefore, you need to screen applicants to ensure you don't hire those who would raise your rates. This is as simple as getting each driver's record from the Department of Motor Vehicles (DMV). It will help you will know who has a driving under the influence (DUI) conviction in their driving history, who has accumulated a myriad of traffic tickets and who is always causing accidents. You will also be satisfying federal and state regulations, which require employers to get their drivers driving records.
Use an Automated Monitoring System
Monitoring your drivers is the best way to know which areas need to be improved. For example, you will know which drivers over speed, which vehicles break down too often, and which drivers are prone to tickets and other road infractions. However, manual monitoring that requires self-reports from your drivers isn't effective because you can't be sure they will always be truthful with you. Luckily, there are automated driver monitoring systems that will collect all these information for you with ease. That way you can improve your fleets' shortcomings and maintain low coverage rates.
Motivate and Reward Your Drivers
Once you have hired good drivers, it's your responsibility to keep them motivated. For example, you can reward your good drivers with bonuses to motivate them to keep their clean records. Of course, you also have to be tough with your drivers when they make mistakes. A mistake here and there can be handled by warning and training, especially if the mistakes are minor. However, you need to let go of those who can't be safe on the road, especially for serious infractions such as DUI.
Buy Low Maintenance Vehicles and Maintain Them
Your drivers' actions aren't the only things that affect your coverage rates; the types and conditions of vehicles you use also matter to your insurers. Therefore, don't buy expensive vehicles unnecessarily; just like in private auto insurance, expensive commercial cars cost more to insure. Invest in low-maintenance trucks and keep them properly maintained so they aren't as likely to break down. For more information about insurance, contact United Insurance Agency Inc.
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