Are automobiles used in your company’s operations? Having the right auto insurance is crucial, regardless of whether you have a large fleet of trucks on the road or only one car used for deliveries sometimes.
Protecting your products and the money in your business's bank account is what adequate insurance entails. Everyone expects it from a paid service, isn't that right?
Nearly every US state requires auto insurance, but it's crucial to remember that a vehicle utilized for business purposes needs commercial insurance.
To help you avoid overpaying for business vehicle insurance in the future, we have compiled a list of the most frequent errors that people make.
Concentrating just on price
The most frequent and deadly error made while buying insurance of any kind. When signing a contract with an insurance provider, you should never base your choice just on the ultimate cost.
Just like other market conditions, premium values do differ from one insurer to another. A relatively inexpensive policy, however, may conceal coverage traps that might end up costing you a lot of money just when you need it most.
As a result, it's critical to understand precisely what you're being quoted for, including the coverage offered, the deductible amount, and the kind of support provided. Then, compare the quote with other quotes that have the same specifications.
Finding the greatest coverage for a range of business classes and commercial vehicles at the lowest cost is a first priority at STAR Mutual RRG.
Reducing liability coverage
Auto accidents may result in pricey litigation and costly damages. You will be liable for the remaining expenses if your company's liability coverage only pays the bare minimum required by law.
In order to determine the best level of liability coverage for your business, look for a broker that can understand your business demands and possible vulnerabilities of its operations.
Not checking your insurance before renewing
Periodically reviewing your policy is extremely beneficial. Rates could change, new business procedures or added classes of transported goods might come into play, and your coverage might no longer meet your business requirements.
Once again, the best way to make sure your coverage meets your needs is to speak with your insurance provider or one of their experienced representatives. Be sure you're not overpaying or underprotecting yourself.
Before renewing your policy, you should review it to help avoid future pitfalls (there we go again).
Insufficient coverage for mobile equipment
Commercial and/or industrial equipment utilized for transportation of materials while in movement is referred to as mobile equipment. Forklifts, backhoe loaders, cranes, and many more are examples of these devices, which can tow, dig, lift, move, or push.
Since general liability policies often cover these vehicles in action, mobile equipment insurance might be a bit more difficult to play with. In some circumstances, like transporting the this sort of equipment, you need auto liability insurance.
Generally speaking, general liability insurance will cover any mishap involving equipment utilized in the workplace. Nonetheless, the commercial auto liability insurance is the best coverage to have in case an accident happens while the equipment is being transported. For mobile equipment that will be using public highways, this protection is essential.
At all costs, choose a low deductible
The amount you must pay for a loss before your insurance company begins to pay your claim under the terms of your policy is known as your deductible.
A high premium is equivalent to a low deductible, and vice versa. The hazards your vehicle is subjected to during regular business operations will ultimately determine which approach is most effective.
For instance, a policy with a larger deductible would be appropriate if you seldom file insurance claims and your corporate car exclusively operates in low-accident areas.
We advise consulting with an insurance expert who is familiar with the area where your business is located.
Failure to insure rental or non-owned cars
Rental cars are those that your business leases, rents, or contracts for a brief period of time—less than six months. Non-owned vehicles are those that are not owned by your organization, are not leased, and are generally not used for business reasons. Examples of these include employee automobiles that are sometimes used for work-related activities.
A business car insurance may or may not automatically include liability coverage for non-owned and rental vehicles. To make sure that no coverage is overlooked, it is crucial that you provide your insurance company with as much information as you can.
Conclusion
When buying vehicle insurance for your business, paying closer attention to the details may save you money, which you can then use to buy more comprehensive coverage.
Remind yourself that you can always rely on STAR Mutual RRG and steer clear of the blunders we mentioned above. Our representatives are always on hand to respond to inquiries, support you in the transformation into a safer and better transportation operator, and assist you in realizing and preserving the American dream.
