When deciding which of your employees should have access to a company vehicle, it’s important to consider the impact they might have on you Business car insurance.
Accidents at fault are those most common cause of premium increases on car policies, and most accidents are caused by driver erroraccording to a 2021 study. Driving errors can include driving too close behind another vehicle, driving too fast, driving distractedDriving under the influence of alcohol or drugs and more.
Because of this, it’s important to understand your employees’ driving habits and driving history before allowing them to drive any of your vehicles.
4 tips to protect your car insurance rates
Tip #1: Do your research
Always obtain a vehicle registration document (MVR) from an applicant before making a hiring decision. Make sure prospective employees sign a waiver allowing you to run this report on them before offering the position or allowing them to use a company vehicle.
If there is any doubt as to whether the recording is acceptable, submit it to your insurance agent or carrier for approval or rejection before allowing the applicant to drive.
An expert perspective: “Although not always the case, many accidents involve drivers with multiple prior traffic violations and/or at-fault accidents. Exercise your right to select someone with a good record before allowing them to use your assets,” says John Carroll, Commercial Staff Underwriter at central insurance. “Would you allow someone with little or no prior experience to operate a $100,000 machine? If not, why would you let someone with multiple tickets and a couple of at-fault accidents in the last three years drive your new $80,000 truck in heavy city traffic?
Tip #2: Consider your current status
At Central we build Discounts and special offers on business auto insurance policies based on certain key factors. This includes the number of vehicles you field, the number of claims filed in the past, damage control experience, etc.
For example, if you have a fleet (five or more engines) and good claims experience, you may have an “experience credit” on your policy. Similarly, you may be in a less expensive company (tier) because of your company’s overall good driving record.
While these discounts are a huge benefit for many organizations, in reality it only takes one unsafe driver to ruin all your good experiences and skyrocket your car insurance costs. In addition, since experience credits can contain up to four years of data, it can take years for the credit to be returned after a serious accident.
Tip #3: Familiarize yourself with relevant statistics
The age of the driver is one area that can provide statistical information about the expected level of safety in road traffic. Research shows this, for example adolescent and young adult drivers are more likely to be involved in self-inflicted accidents.
As a result, many insurance companies will be reluctant to accept someone in this age group as a driver on a commercial policy. This is especially true when a truck weighs over 10,000 pounds.
Tip #4: Keep families away from commercial insurance policies
Private vehicles should generally not be insured commercially, but especially not to insure young family members.
“It only takes one loss to ruin that experience and jeopardize cheap pricing for your business policy,” Carroll reiterates.
Instead, entrepreneurs should think about it personal car guidelines for their families, separate from any commercial auto insurance policies they may have.
Insure your commercial vehicles with Central
Central Insurance offers a range of great commercials Auto Insurance Policies to meet the needs of any business. The vehicles covered under these various policies include those owned or leased and include cars, trucks, vans and other similar vehicles.
How does Central determine how much a commercial automobile policy costs?
Several factors determine the cost of your coverage with Central, including:
- Business class (NAICS code)
- Business Use
- radius of action
- limit of liability
- New price of the vehicle
What does a commercial motor vehicle policy cover?
Central offers two types of protection for businesses with commercial auto insurance – property insurance, which protects against damage to your vehicle, and liability insurance, which covers personal injury to others and damage to their property.
Keep in mind that policies can be upgraded upon request to include additional protection for things like medical payments, uninsured motorists, personal injury protection, employee cars used on employer’s behalf, and more.
Did you know: Central also offers a special Insurance policy for car dealers for car, motorcycle, truck and equipment dealers or trailer dealers. This policy provides additional coverage for your customers’ vehicles while they are in your care, custody or control.
How do I sign up for company car insurance with Central?
If Central’s range of commercial motor vehicle policies are a good fit for you, contact your independent insurance agent today for a quote. If you’re not sure if your agent is a Central partner, you can find one that uses it form.
The above information is general in nature and your policy and coverage may differ from the examples provided. Please read your policy completely to determine your actual coverage available.