Commercial fleet owners often face significant costs related to maintaining and insuring their vehicles. These vehicles, though, are at the heart of the business.
An initial business owner policy (BOP) is a good step in the right direction. However, it is rarely enough financial protection. It is never advisable to limit or pull back on your commercial auto insurance.
Buying insurance for commercial fleets can be expensive. But, like with all business insurance, there are ways to reduce your overall costs.
Saving Money on Commercial Auto Insurance for Your Fleet
What can you do to trim back the cost of commercial auto insurance?
#1: Group vehicles into one policy
Often, it is possible to group or bundle auto insurance plans for the entire fleet into one policy. Doing this, instead of having individual policies for each vehicle, saves money. Lump property insurance and other business insurance as well for further savings.
#2: Hiring the right drivers
High-risk drivers simply are too much risk. Instead, complete comprehensive background screenings for all drivers. Follow all state laws and limitations in background screenings. Keep your records up to date. That is, at least annually, pull reports to ensure drivers still have a good record.
#3: Invest in technology
Technology can provide incredible insight into how you use your fleet:
- It can track where your vehicles are using GPS. This can help minimize theft risks.
- Technology can ensure drivers are taking enough breaks for long road trips.
- Use technology to monitor the overall function of the vehicle. Keep records of efficiency, safety violations and even maintenance needs at the home office.
#4: Incorporating ongoing safety training for drivers
The best way to keep costs down is to avoid accidents. To do this, incorporate routine driver training courses. Teach employees how to drive in all weather conditions. Do not pressure drivers to complete trips in unfair or high-risk situations.
#5: Maintain the vehicle
Routine inspections are necessary. Ensure the vehicle is operating safely, with all directional lights functional. Be sure employees have an open door to report any concerns as they occur. This can help ensure a driver feels welcome to report a problem long before an accident occurs.
Commercial auto insurance is very valuable to most businesses. The proper insurance plan does not have to be too pricey, though.
We will work closely with you to choose the commercial auto policy that is best for you. And, Voyager Insurance Services, Inc can keep such policies updated as your fleet changes. Visit our website to learn more about commercial auto policies. Give us a call at (860) 521-1420 with any questions.