If you run a business that requires constant movement of items from one place to another, then you would know the relevance of a sturdy commercial vehicle. You would also be aware that it is important to keep your finances secured in case anything happens to the vehicle with an insurance policy. However, sometimes, maintaining a comprehensive commercial vehicle insurance policy can get quite expensive. As a business owner, you may want to save some money in this regard. So, to help savvy vehicle owners out there, we have come up with 5 ways that you can lower the costs of your commercial vehicle insurance policy.
- Buy/renew insurance policy online
This is a piece of frequently given advice and there is solid proof of why that is so. Buying insurance policies online removes the middlemen, thus saving you a good chunk of money that you may have paid as commission. Plus, many insurance companies also provide you with discounts when you buy or renew the policy online. What’s more, you also end up saving time as you do not have to visit the insurance branch physically. This is also why a lot of private vehicle owners buy their bike and car insurance online.
- Install anti-theft devices
Commercial vehicles are often large and difficult to steal, but there is a possibility of certain items and accessories getting stolen. If there are many such items in your vehicle, it may result in a slightly higher premium as it increases the risk profile of the vehicle. You can avoid this and instead pay a lower commercial vehicle insurance premium by installing anti-theft devices. This is especially pertinent for commercial vehicles that cover long distances and travel to unfamiliar areas.
- Pay a higher deductible
As you may be aware, the deductible is of two types, voluntary and compulsory. You can decide how much the voluntary deductible will be. If you are looking to save money in the long run, then you should opt for a higher deductible. This leads to a considerable decrease in the premium costs of your commercial vehicle insurance policy.
- Avoid raising claims for small issues
If you do not raise any claims during the entire policy year, you can get a discount or a bonus on the next premium. This is referred to as the No Claim Bonus. The longer you do not raise a claim, the higher the percentage of the discount. Now, imagine that you have had no claims for almost 90% of the policy period but end up making a claim at the end for a small issue. You will end up losing your well-earned NCB! Therefore, if possible, avoid raising claims for minor repairs or issues.
- Invest in the right add-ons
A savvy business owner knows that a great way to save money in one area is to invest money in another area. Thus, in commercial vehicle insurance, you can invest in suitable add-ons. For instance, if you tend to raise claims very often due to the nature of the business, then a zero-depreciation add-on would be greatly apt. You may have to pay a slightly higher premium but when you raise claims, you can be rest assured that there will be no deduction of the depreciation value. You will be receiving the entire claim amount as is your due.
Do consider the characteristics of your business, the geographical area your vehicle will be covering, the risk profile of your vehicle, and so on. This will give you a strong idea of your coverage needs and you can buy a commercial vehicle insurance policy with the right knowledge and awareness.