Commercial auto insurance provides extensive coverage to business owners. If you operate a vehicle as a part of your business, it pays to have a policy designed to meet your specific insurance needs and risks. The company could be held liable if an employee causes an accident while performing a work task. If this should occur, your company could face thousands (if not more) in losses from lawsuits, property damage and bodily injury. Yet, having a commercial auto insurance policy means that your drivers’ performances could impact your rates.
Your Driver was Speeding
When a person is pulled over for speeding, the police officer will request information about that driver, not necessarily the commercial insurance plan. The driver's license may be specifically impacted by the speeding ticket (or other moving violation) and points are added. The legal component of this process does not necessarily impact your business.
However, if that speeding driver was involved in an accident (for example, hitting another vehicle), your insurance carrier is likely responsible for the loss. In this case, your carrier will learn of and likely cover the losses inflicted on the other driver as a result of the incident.
What Impacts Vehicle Insurance Rates?
A key step in the process of obtaining and keeping auto insurance is to provide information to your insurer about your drivers. In doing so, your insurer will assess the amount of risk your company presents and then offer a rate to you. If you have numerous drivers with points on their license or have filed multiple claims in the last few years, you represent a higher level of risk to the carrier. As a result, you are likely to pay more for insurance.
How can you keep your commercial auto insurance rates affordable? Like any type of business insurance, it takes work to reduce risks. Hire and manage drivers with better driving records. Offer safety training courses to all drivers. Try to maintain a claim-free history. And lastly, compare rates with the help of your independent insurance agent to learn about the most affordable plans for all of your business insurance.
Get a quote today. Call Garza Insurance Agency & Multiservices Inc. at 281-260-9091 for more information on commercial auto insurance.