Learning more about the factors affecting commercial auto insurance rates can help you weigh different carriers’ quotes for coverage discerningly. Thus, business owners have some things to consider. They also have some vital decisions to make.
What Drives Your Commercial Auto Insurance Prices
Here are a few key variables that figure into carriers’ determination of how to set premiums.
Prior Commercial Auto Insurance Claims
One of the most important things that drive commercial auto insurance premiums is their claims history. Insurers will review the quantity, individual costs, and aggregate costs of claims you have previously filed with them and other providers. In addition to prior claims, carriers typically include claims under personal auto insurance policies.
Driving Records
Before offering you a quote for coverage, insurers may request information about all employees who will drive company vehicles or drive their own vehicles within the scope of their regular job duties. The information they request commonly includes a person’s driver’s license numbers and date of birth. They use this to obtain driving records detailing traffic violations for offenses such as speeding or operating a vehicle with a suspended license. Records also indicate how often a person has been in a car accident.
Record checks help commercial auto insurance providers know whether someone has a proven track record of safe driving practices. A motor vehicle registry may also relay whether someone has incurred points against their driving record or has had their driver’s license suspended.
Location
Like many operating costs, commercial auto insurance prices vary depending on where you do business. What factors are considered in rates that involve your location? The population density, local crime rates, and aggregate value of insurers’ paid claims within a specific region affect their assessment. The higher these variables are, the more risk commercial carriers will perceive. Consequently, you may have to pay more for insurance if you operate in a populous city.
Commercial Vehicles’ Value
Naturally, the cost of commercial auto coverage can depend heavily on the total value of the vehicles you insure. New cars, trucks, or vans will generally be more to insure than older vehicles. A brand-new vehicle will cost much more to insure than a vehicle that is only two years old. However, a vehicle that is two years old may cost less to insure than a vehicle that is four years old. This disparity is attributable to new vehicles depreciating in value quickly.
Commercial Auto Insurance Coverage Elections
Your policy’s deductible is a significant factor in the cost of your premium. Paying a higher deductible means that premiums will cost less. A commercial auto insurance policy’s limits are another key element of your coverage that bears on the costs. Attaching higher limits to a policy results in higher commercial auto insurance premium costs.
Sometimes, bundling your auto insurance with other policies under a commercial insurance package could get you better coverage rates. Working with a knowledgeable agent can help you strategically explore your coverage options.
About Haughn & Associates
Founded by Michael Haughn in 1986, Haughn & Associates is a full-service, family-owned, independent insurance agency based out of Dublin, Ohio. H&A strives to provide the best possible price and unique insurance solutions across a myriad of industries, including construction, IT, Habitation & Commercial Property, Agriculture, and Engineering. Devoted to providing the best of business insurance, life and disability insurance, personal insurance, employee benefits, and bonds, H&A is proof that success lies in long-standing client relations and satisfaction. To learn more about how H&A can be of service to you, contact us at (877) 802-2278.
