This story appears in the
October 2005 issue of
Entrepreneur.
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Insuring business vehicles isn't cheap. John Schack, vice
president and chief sales officer with insurance brokerage HUB
International, offers these tips for keeping your premiums
down:
- Implement loss-control measures. Evaluate
the necessity of trips during bad weather 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 insurance agent about these and other ways to
reduce auto-insurance premiums.
Jacquelyn Lynn is a freelance business writer in Orlando,
Florida.