Five things you should consider before your next renewal
By Andy Fulford, product manager, Progressive
Your vehicle insurance could be as much as 40 percent of your total operating budget. A Regular policy review is essential in making sure you have the right insurance for your truck—and your business. Plus, you could save big buck if you qualify for additional discounts.
To get started, ask yourself these five questions—then give your local agent a call.
1. Are all of my employees covered when they drive my trucks, even if they’re not listed on my policy?
You should always list employees who regularly drive your vehicles. Ask your insurance company if it covers temporary drivers as long as they have your permission to operate the vehicle.
Some insurance companies will only cover drivers who are named on the policy. So, if you regularly employ temporary workers, you need to call your insurer and add them to the policy every time they drive to ensure they’ll be covered in an accident.
Permissive use policies don’t require you to add temporary workers.
2. Will my policy pay to repair my employees’ personal vehicles if they get into an accident while running a business errand?
If you often send employees on business errands in their personal cars or trucks, or, if you use rental vehicles, consider adding optional coverages to your policy to protect those vehicles. In many cases, a standard commercial auto insurance policy won’t cover damages in case of an accident. Your agent or insurance company can walk you through all of your options.
3. Should I maintain my policy during the off-season if I’m not using my truck?
When the season’s over, consider switching to Comprehensive-only coverage instead of canceling your policy altogether. This coverage protects your vehicles against incidents like vandalism or hail that can happen when they’re sitting for long periods during the off-season.
If you do decide to cancel your Liability insurance, check with the Department of Motor Vehicles first. There may be some additional steps you need to take to comply with the insurance laws in your state.
4. How quickly does my insurance company resolve claims?
Find out how long, on average, it takes your insurer to resolve claims. The faster they take care of your claim, the faster you can get back to work.
Also, ask if your insurance will cover a rental vehicle or provide downtime payments.
That way, if your truck’s out of commission, your business will stay profitable.
5. What can I do to control my insurance expenses?
Discounts can make a big difference, especially with commercial insurance. Progressive offers several, like an experienced business owner discount and a discount if you have a General Liability or Business Owner’s Policy. Other ways that you can save include increasing your deductibles and paying your premium in full.
Andy Fulford is a product manager for Progressive. Progressive, in business since 1937, offers products and services that simplify buying and using auto insurance and is the #1 truck insurer in the U.S.