As a business owner, you have a variety of regular costs you incur, all in the hope of regularly turning a profit.
While some of these costs remain rather fixed, it is a nice option when you actually have a little bit of control over a cost, especially when it involves insurance and protecting your ability to maintain coverage against large, additional costs.
When it comes to insurance, the key to reducing cost is the reduction of risk. Keeping the cost of business auto insurance down requires staying informed and active across a number of areas. However, as we always advise at Insurance For Texans, cheaper doesn't always mean better. Having the right coverage is always better for you, your business, and anyone you protect.
The daily driving distance for your commercial autos (or fleet) matters when it comes to your insurance premium rate. Depending on how far your business-owned vehicles travel from the location they are stored, e.g., your business location(s).
This will determine whether the driving radius for your business vehicles falls into a local (up to 50 miles), intermediate (51 to 200 miles), or long-distance category (200+ miles). The fewer the miles, the less the risk, the less the cost for insuring.
Allow For Monitoring
With the technology available for tracking vehicles via GPS, businesses are finding insurance carriers to offer more reasonable rates. GPS tracking allows for several things carriers like to see, including:
- Fleet Recovery - the less likely your fleet vehicle will remain stolen
- Telematics - this technical GPS innovation records and reports on driver behavior is a great instrument for safety training of your fleet operators
- Maintenance - GPS will also allow for monitoring of standard maintenance for your fleet, helping to reduce risk of danger brought on by improperly maintained vehicles
Carriers will continue offering discounts for GPS tracking, knowing the safer the behavior and the vehicle, the less likely an insurance payout on their end.
It's a good idea to stay current when it comes to who has permission to drive your fleet vehicles. There is a difference between the permission you give, and the permission your policy gives in the case of wanting to make certain that person is covered. This requires keeping the list up to date to prevent covering employees who have moved on from your company, and not preventing covering the newer employees who have recently joined your company.
A rule of thumb, make sure to cover only those who have the capacity, availability, and permission to drive your fleet.
Know Before You Hire
Speaking of those who you plan to give license to drive your company-owned vehicles, you want to make sure you know their driving record. In addition to your regular pre-employment check, make certain you conduct an analysis of your potential hire's driving record. In the state of Texas, employers are able to conduct a Motor Vehicle Report (MVR) check on potential employees to determine their state driving record, including information related to violations, unpaid tickets, suspensions, accidents, and more.
You will certainly have the information you need to determine if the potential employee is trustworthy to drive your vehicle that may bear your company name. You want to make sure as you build your local business, you are taking care of your business.
Speaking of Local
Putting some control back into your hands is one of the reasons why Insurance For Texans exists. We don't like the idea of one type of policy for all people by a handful of carriers writing that policy. That doesn't speak Texan to us and you'll probably agree you either moved here or stayed here because you like a little bit of choice in your life. As an independent, insurance agency, Insurance For Texans helps to keep that spirit alive and well when it comes to protecting you and yours.
Give us a call, email, or chat. We'll work out the best coverage options for you.