What to Look for in Commercial Auto Insurance Companies

Businesses need auto insurance too, and it usually needs to be a separate policy from the one that covers personal vehicles. However, the qualities that you need to look for in a commercial auto insurance company are pretty similar to those you need to look for in a personal auto insurance provider.

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Auto insurance coverage for your business is pretty important. It protects the assets and health of the company, just as your personal car insurance protects your financial stability and well-being. You need to get coverage, so you might as well find coverage with one of the best. There are a few factors that separate a great commercial auto insurer from the rest.

Why You Need Commercial Auto Coverage

Contrary to popular belief, your personal car insurance might not cover you if you use the vehicle primarily for business purposes, according to the Insurance Information Institute. It certainly will not cover the vehicle if it is owned by your company. Business owners need to purchase separate commercial auto insurance to protect their company from costly liability in an accident or other loss.

Furthermore, your company’s liability insurance that covers buildings, materials, and inventory likely does not cover vehicles, either. In order to be completely covered, you need to have commercial auto insurance for vehicles that are used to carry out your business.

The National Association of Insurance Commissioners reported that in 2008, not even half of all small businesses in the U.S. carried commercial auto insurance. Your company can be sued for damages if you or an employee gets into an accident in a company vehicle.

Even if you were not at fault, the litigious nature of our society could create one huge headache that could tie up your business’s resources. Such a trial could stall or even ruin your business.

Affordable Rates

Every business can use a leg up, and affordable rates are important for keeping your overhead low. Do notice, however, that affordable does not mean cheap. It is important to go with a company that provides affordable rates for a great insurance package. A cheap commercial insurance provider who offers miserable coverage is just not worth it.

The U.S. Small Business Administration asserts that the best way to find the most affordable rates is to compare coverage from several providers. Make sure that you get quotes for the same amount of coverage so that you can compare apples to apples and get an accurate comparison.

The Internet is a great option for comparing quotes from auto insurance providers, though you can also use the phone or visit an insurer in person. Getting quotes is a simple process that takes very little time when you use quote comparison websites.

You are under no obligation to buy, you get your quotes in a quick amount of time, and you can see the highs and lows that are available to your company for coverage.

A Full Range of Options

Another factor that you might want to consider when looking for a commercial car insurance provider is one that offers multiple lines of insurance or has a range of options. Such companies are generally larger insurers who have an array of packages and offerings. Generally, most insurance companies offer discounts when you have multiple policies with that provider.

You can save a lot of money if you can bundle your other insurance requirements with your car insurance plan. Find an insurer who can also handle your liability insurance, worker’s health insurance, and workers’ compensation insurance to realize savings across all lines that you purchase.

It might even be possible for you to bundle you business insurance lines with your personal lines to save even more. A great commercial auto insurance provider is one who can also cover your home insurance alongside the insurance needs of your business.

Furthermore, a company that offers a wide array of options for your vehicle coverage may be the way to go as well. You can pick and choose the perfect coverage that fits your needs to a “T.”

Then, you won’t have to pay for coverage options that your really don’t need.

A good commercial car insurance company will help you to pick and choose exactly what you need, based on your particular industry and daily operations.

Great Service

One very important factor to look for in a business auto insurance company is great customer service. Insurance can be a confusing topic, and some companies really take the time to walk you through the process. Others are not helpful at all.

Your commercial insurance provider is there to protect the assets of your company, so they should really provide personalized service in order to be the best. If you have an emergency situation or a claim, you don’t want to use a car insurance provider who really doesn’t care about you beyond your premium payment.

Research all of the business car insurance companies that you are considering. A list of providers that returned affordable quotes during your Internet search is a good place to start. Check consumer ratings, such as those offered by J.D. Power & Associates.

While J.D. Power’s annual ratings surveys are geared towards personal auto insurance, most of the providers who are rated are major car insurance companies that operate in most or all states in the U.S. They more than likely offer commercial auto insurance as well as personal car coverage.

Another place to research the reputation of a commercial car insurance provider is with the Better Business Bureau. The BBB also rates companies and business using an alphabetical rating scale. It provides unbiased ratings based on factors such as time in business and the resolution of customer complaints.

Those companies with the highest ratings are your best bet for superior service.

They will be there for your company through the buying process, the claims process, and everywhere in between. Companies with low ratings are probably not worth your time unless you enjoy long waits on the phone, unhelpful representatives, and a claims process that is yours alone to figure out.

Strong Financial Ratings

Another important factor that you need to look for when trying to find the best commercial car insurer for your company is strong financial ratings. The finances of an insurance company are important so that they can actually pay your claims if the need arises!

Ratings organizations such as Standard & Poor’s and A.M. Best judge the financial standing and future outlook of financial organizations such as insurance providers. These alphabetical ratings insure that providers of auto coverage will be able to honor their financial commitments through tough economic times or events that cause a large volume of claims, like a natural disaster.

For instance, say that your company parking lot was flooded due to a hurricane. You have lost all of the vehicles that you need to run your business.

This hurricane created a large amount of flooding and damage all over your state, so every insurer in the region will be hit with a wave of commercial and private car insurance claims.

Unluckily, your commercial auto insurance provider does not have the assets to handle all of the claims, and they file for bankruptcy before they pay out your claim. Where will the money come from to replace your vehicles and get your business back on its feet? Insurance companies have a promise to uphold in all weather—literally and figuratively—so strong financial footing is of the utmost importance.

You can research the annual financial ratings of any insurance provider using rating organizations. They provide honest, unbiased feedback for businesses such as yours to make sound financial decisions when purchasing insurance.

Flexibility

As a business owner, you have to be flexible in order to stay abreast of market trends and provide your customers and clients with exactly what they want and need. Providers of commercial auto insurance should be no different.

It is recommended by the experts at the National Federation of Independent Business that you review your commercial auto insurance coverage at least once a year. Your needs may change, and you need to provide coverage for those changes.

Your business car insurance provider should assist you with those changes as well. However, they should not only be interested in adding coverage to increase your premium. Insurance providers should also help you to find ways to cut unnecessary coverage and bundle different lines of insurance, as well as offer you discounts.

Furthermore, they should also be interested in keeping your business. Even if you already have commercial car insurance coverage, search for quotes anyway. If you find lower rates for the same amount of coverage, then take those figures to your current provider.

The most flexible business insurance providers should be interested in matching those quotes to keep your business.

If they won’t match it without good reason, then perhaps it is time to switch to a different provider!

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