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Downshift

Cut your car-insurance costs.

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This story appears in the October 2005 issue of Entrepreneur. Subscribe »

Insuring vehicles isn't cheap. John Schack, vice president and chief sales officer with brokerage HUB International, offers these tips for keeping your premiums down:

  • Implement loss-control measures. Evaluate the necessity of trips during or heavy traffic periods, use vehicles for business purposes only, and keep vehicles in good operating condition.
  • Verify the garaging location of vehicles. If vehicles are taken home at night, the garaging location may have a lower cost factor.
  • Increase deductibles. Schack recommends a minimum of $500.
  • Don't buy coverage you don't need. Consider not buying comprehensive or collision coverage on older cars. Also, vehicles used strictly for business by employees may not need medical-payment coverage if injuries would be covered under workers' compensation insurance. But business owners and corporate officers are typically excluded under workers' comp, so review your coverage carefully before dropping anything.
  • For company-owned private passenger vehicles, check for savings in insuring them on a personal-lines policy, rating the usage as business and listing the company name as an additional insured.

Talk to your about these and other ways to reduce auto-insurance premiums.

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