Commercial auto insurance rates can seem excessive at times. However, you do have some control over the premiums you pay. Consider these reasons that commercial auto rates tend to be high and what you can do to reduce auto insurance rates.
Factors That Impact Auto Rates
Knowing what factors affect your rates can help you manage them better. Two of the biggest things are your company’s claim history and fleet management practices. Companies with multiple recent claims will be looked at less favorable than those without them. Also, vehicles that do not receive proper maintenance may have systems that do not function properly. In certain situations, such as with brakes or turn signals, this can lead to an increase in accidents.
How You Can Keep Them Under Control
Luckily, you can make changes to improve how insurers view you and, in turn, potentially lower your premiums. Here are a few suggestions to get you started on the path to lower insurance costs:
- Perform all required and recommended maintenance on fleet vehicles
- Screen driving records for all employees that will operate company vehicles
- Institute a driver training program
While your commercial auto rates won’t go down overnight, improving the company’s claim history and maintenance schedules can go a long way to bringing them under control over time.