The Rising Cost of Commercial Auto Insurance: How to Keep Your Rates Low

With increased claims, higher repair costs and more vehicles on the road, premiums are rising. If your company relies on vehicles to conduct business, managing these increasing costs is essential to protecting your bottom line.

What Factors Affect Commercial Auto Insurance Cost?

Several elements influence how much you pay for coverage. One major factor is your company’s claims history. The type of vehicles in your fleet also matters as larger or specialized trucks tend to cost more to insure. Driver records are another key component; employees with clean driving histories typically trigger lower premiums. Finally, where and how your vehicles operate plays a role. Urban routes and long-haul travel often come with higher risk and higher costs.

How Can I Save on Commercial Auto Insurance Costs?

Your business can keep costs under control without sacrificing the necessary coverage. Consider the following strategies:

• Hire safe drivers and review motor vehicle records before hiring.
• Invest in driver training to reinforce safe habits and keep drivers up to date on traffic laws and company policies.
• Maintain your vehicles to extend vehicle life and reduce the likelihood of breakdowns and accidents.
• Limit unnecessary mileage. Fewer miles on the road often translates to fewer risks.
• Shop around and compare quotes periodically to ensure you’re not overpaying.
• Review coverage annually to help eliminate unnecessary costs.

Managing commercial auto insurance costs doesn’t have to be overwhelming. Reinholdt & O'Harra Insurance can help find discounts and secure your ideal coverage. Contact us today to get started.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.