When deciding which of your employees should have access to a company vehicle, it is important to consider the effect these people may have on your company car insurance.
Mishaps they are most common cause of car insurance premium increases, and most accidents are caused by driver erroraccording to a 2021 study. Driver errors can include following too closely behind another vehicle, speeding, driving distracteddriving under the influence of alcohol or drugs, and more.
For that reason, it is important to understand your employees̵7; driving habits and past driving records before allowing them to drive one of your vehicles.
4 Tips to Protect Your Business Auto Insurance Rates
Tip #1: Do your research
Always obtain an applicant’s Motor Vehicle Record (MVR) before making an employment decision. Be sure to have potential employees sign a waiver allowing you to pull this report on them before offering them the job or allowing them to use a company vehicle.
If there is any doubt that the record is acceptable, forward it to your insurance agent or carrier for approval or disapproval before allowing the applicant to drive.
An expert perspective: “Although not always the case, many accidents involve drivers with multiple prior moving violations and/or at-fault accidents. Exercise your right to select someone with a good record before you allow them to use your assets,” says John Carroll, commercial personnel 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 allow someone with multiple speeding tickets and a couple of accidents in the last three years to drive your new $80,000 truck in heavy city traffic?”
Tip #2: Consider your current position
At Central, we build in discounts and special offers on company car insurance based on certain key factors. These include the number of vehicles you use in the field, the number of claims filed in the past, loss control experience, etc.
For example, if you have a fleet (five or more power units) and good loss experience, you may have an “experienced credit” on your policy. Likewise, you may be in a cheaper company (tier) because of your company’s overall good driving record.
While these discounts are a huge benefit to many organizations, the reality is that it only takes one unsafe driver to ruin all of your good experiences and increase your car insurance costs. Also, because experience credits can involve up to four years of data, it can take years to get the credit back after a gross-at-fault accident.
Tip #3: Be familiar with relevant statistics
Driver age is one area that can statistically indicate the level of expected safety on the road. This is shown, for example, by research teenagers and young adult drivers are more likely to be involved in wrong-way accidents.
As a result, many insurance companies will be more hesitant to allow someone in that age group to be a driver on a commercial policy. This will be especially true if a truck weighs over 10,000 pounds.
Tip #4: Keep families out of commercial insurance
Personal vehicles should not be insured on a commercial policy in general, but especially not to insure young family members.
“It only takes one loss to ruin that experience and jeopardize the bargain rates on your commercial policy,” Carroll reiterates.
Instead, business owners should consider personal car policies for their families, separate from any commercial auto insurance they have.
Insure your commercial vehicles with central
Central insurance offers a number of good commercials car insurances to meet each company’s needs. Vehicles covered by these various policies include those that are owned or leased and include cars, trucks, vans and other similar vehicles.
How does Central determine how much a commercial auto policy costs?
Several factors determine the cost of your insurance cover at Central, i.a
- Business Class (NAICS Code)
- Business Use
- The radius of the business
- Liability limit
- New cost for vehicles
What does commercial auto insurance cover?
Central offers two types of coverage for commercial auto insurance companies – property coverage, which protects against damage to your vehicle, and liability coverage for bodily injury to others and damage to their property.
Remember, policies can be expanded upon request to include additional coverage for things like medical payments, uninsured motorist coverage, personal injury coverage, employee cars used on employer’s behalf, and more.
Did you know: Central also offers a special Car dealer insurance for car, motorcycle, truck and equipment dealers or trailer dealers. This policy provides additional coverage for your customers’ vehicles while in your care, custody or control.
How do I sign up for business car insurance with Central?
If Central’s variety of commercial auto insurance sounds like 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 does form.
The above information is of a general nature and your policy and the policies provided may differ from the examples provided. Please read your entire policy to determine your actual coverage.