A “fleet” is generally defined as five or more commercial vehicles that are used in day-to-day business operations, and if your business operations include a fleet of vehicles, chances are you’re always looking for ways to lower your Calgary commercial auto insurance rates. You should regularly review your insurance coverage as your fleet grows to ensure you’re getting the essential protections you need at the best possible rates.
One of the best ways to keep your Calgary commercial insurance rates in check is to ensure all employees who drive vehicles have clean driving records. In other words, if an employee has traffic violations or more serious offences on his or her record, it is best not to include that person on your commercial insurance policy. However, this is only the tip of the proverbial iceberg when it comes to Calgary commercial insurance rates. There are many other ways you can trim costs without sacrificing the comprehensiveness of your coverage.
Commercial Insurance in Calgary: Strategies for Controlling Costs
Use these tips and tricks to reduce your commercial truck insurance and auto insurance rates:
- Adjust limits and deductibles. Raising your deductibles and lowering your maximum coverage limit will both reduce your overall monthly or annual rates. While you will sacrifice a bit of your safety net, this generally won’t be a problem if your business has the cash flow to cover a higher deductible in the event of an accident. However, you should carefully perform calculations to make sure that even a “worst-case scenario” event won’t put the overall financial health of your business in jeopardy.
- Investigate discounts for multiple policy holders. This is a proven strategy for enjoying lower insurance rates. If you have multiple policies through the same company, you may qualify for an insurance discount of as much as 20 per cent. If you’ve arranged your business insurance through a provider and you’re happy with that company’s rates and services, consider switching your commercial vehicle coverage to the same company, if they offer it. This will likely lead directly to a significant discount on your Calgary commercial auto insurance.
- Leverage your reliability as a customer. Just like you, insurance companies appreciate repeat business. As such, they may offer discounts to customers they have a long-term relationship with. There are two ways to go about doing this. First, you can renew your policy with your current insurer year after year; this will lead to reduced rates, especially if you have not filed any claims or had any driving accidents or traffic violations. Second, you can show the insurance company that your business is financially healthy and stable. This makes it more likely that you will remain with the insurer over the long haul, and you may immediately be offered a better rate on your commercial vehicle coverage.
- Prioritize safety. Insurance rates are directly tied to perceived risk. Thus, if the insurance company has reason to believe you pose a low level of risk, they will offer you a lower price on the coverage you’re looking for. Make sure your drivers are specially trained to operate the kind of vehicles you have in your fleet, and implement safety measures in all your vehicles. Examples of such safety measures include airbags, anti-lock braking systems, padded dashboards, and laminated windshields.
Finally, you should regularly review your policies to ensure they accurately reflect your current needs. If you’ve enlarged or reduced the size of your fleet, you should adjust your insurance coverage accordingly. Also, make sure that your coverage is designed for the intended purpose for which you use your vehicles; for example, if you confine your travels to the local area, make sure your insurer knows that your vehicles are only used for short-distance trips. This can result in reduced rates.
Work With an Insurance Broker
When you get your commercial vehicle insurance coverage through a broker, you also stand a much better chance of getting the lowest possible rates. Dealing directly with an insurance company puts you at a competitive disadvantage, since brokers are able to shop around on your behalf. Because an insurance broker works for you and not for any insurance company, they are able to deliver comprehensive insurance packages at highly competitive rates.
Lane’s Insurance is a leading Alberta-based brokerage, providing value-added service, friendly advice, and access to the lowest possible rates. If you have any questions or concerns about your commercial vehicle coverage, or if you would like to review your current policy to see if you qualify for a better rate, contact a Lane’s Insurance representative.