The Ultimate Guide to Lowering Your Business Auto Premiums

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When Kathy Bates’ character gets cut off from a parking space by two teenage girls in the 1991 movie Fried Green Tomatoes, she vents her frustration by gleefully ramming the girls’ car repeatedly with her own. “Face it, girls,” she says before she drives away, “I’m older, and I have more insurance.”

While we can’t condone that sort of action, it is true that a variety of factors can mean a marked difference in the kind–and amount–of insurance you and your business need. Auto insurance carriers adjust their underwriting regularly, meaning that rates can fluctuate depending on circumstances. Here’s our ultimate guide to lowering your business auto premiums:

Pre-screen every new hire. Pull the DMV record for every employee who might set foot in a company vehicle. Most of the time, your agent can help you run a quick check on a prospective employee’s driving record.

DUIs are a deal breaker when it comes to driving a company-insured vehicle. Try to employ a driver who’s been convicted of DUI or DWI, and your rates will skyrocket–or they may simply be uninsurable for your business.

And the same goes for drivers who have multiple accidents. Two or more accidents by a company driver means you probably do not want them on the road representing your company.

Add GPS tracking technology to your fleet. GPS allows you to monitor your employees’ activities and productivity, but you can also monitor for speeding, as well. Some companies even take the step of putting a governor on their vehicles so that the cars and trucks can’t exceed a certain speed.  

Ever see the “How’s my driving? Call 1-800-555-1234” signs on corporate vehicles? They’re there for a reason: They work. Immediate contact info on your business vehicle means that you’ve turned the public into a watchdog for your drivers. But if you take this step, make sure to follow up–in writing–when you get complaints.

Another tip? Raise your deductible. A higher deductible–say $2,500 or so–can keep incidents like the dreaded ‘fender-bender’ off your insurance carrier’s records. The savings you get from having a higher deductible can be used for more liability coverage, if you and your agent think it’s needed.

And last–certainly not least–start a driver safety training program. This keeps safe driving concepts fresh in your drivers’ minds and stresses caution and safety when behind the wheel.

Our agents at Shields Insurance Agency are happy to discuss your Business, Home, or Auto insurance needs. Feel free to contact us online, or give us a call at 205.783.5893. We look forward to serving you!

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