How to Get the Best Auto Insurance Quote for Your Startup

June 12th, 2015   |    By: Daniel Wesley

Shopping for personal auto insurance can be a pain, and it only gets more difficult when you’re shopping for your business. It’s almost like playing a game of chess against Bobby Fischer: No matter what you do or say, you still feel like you’re going to lose.

So how can you make it easier? When researching auto insurance options for your business, the first road you should take is one you’ve already been down. Start by investigating the provider you currently use for personal home, auto, and general business liability insurance.

Providers love to offer discounted monthly premiums to people who bundle accounts with them, and while commercial and consumer auto policies are two completely different animals, most companies provide both.

Get additional quotes from three to five other companies for comparison’s sake. You want to know you’re making a well-informed decision.

Assessing Your Quote

Did all of your quotes come back with higher dollar figures than you anticipated?

Auto insurance is one of those things you don’t realize you need until you have an accident. High premiums only seem high until you witness how much money a good policy can save you.

There are many factors that play into your auto insurance quote – some are within your control, and others are not. But all of them impact how much money you spend.

Here are four ways to lower the amount your company pays for auto insurance:

  • Reduce Your Mileage

The more you drive, the more chances you have to be in an accident – and the more risk the insurance company takes on by extending a policy to you. Minimize mileage by only using your company vehicles for work-related activities.

Keep close track of how many miles you put on them every year. You can use this data to assess the driving habits of your employees and investigate whether you’re entitled to a reduced rate upon renewal. If you originally thought you would drive 10,000 miles a year but only drove 5,000 miles, you’ll end up paying a much smaller premium when you renew.

  • Keep a Clean Record

Make sure you’re only letting employees with clean driving records operate your vehicles. Thoroughly screen all of your drivers, and request their records from the DMV. Keep up-to-date with their personal driving habits. You should definitely know when a company driver receives a weekend ticket for doing 100 mph in a zone with a speed limit of 50 mph.

It costs a lot more to insure risky drivers, so only have safe, cautious, and clean drivers on the road representing your company.

  • Drive Safely

Keep your commercial vehicles in good mechanical shape, and regularly service them. Do everything you can to avoid unforeseen issues that can lead to accidents.

Keep thorough maintenance records for your vehicles, and be vigilant about fixing mechanical problems as soon as you become aware of them.

  • Know Your Geography

Geographic location plays a fairly large role in your quote. The same exact level of coverage can cost two very different amounts depending on the location of your business. While relocating your company to a more favorably priced town might not be an option, you should consider limiting your services to specific areas as a way of reducing the mileage put on your commercial vehicles.

Lowering the cost of your business’s auto insurance policy is an ongoing process. Constantly collect data on your company’s driving habits, and use it each year to see whether you’re entitled to reduced rates. You already know that every dollar is important to startups. Take every measure you can to limit your monthly rate and prevent an accident from totaling your business.


 

About the Author

Daniel Wesley founded Quote.com to help small businesses find cheap auto insurance.


About the Author

Daniel Wesley

Daniel Wesley is a Florida-based entrepreneur with a degree in nuclear medicine. He is the Founder and CEO of Quote.com, inspiring his team one word at a time. His work has been featured in Forbes, Mashable, The Huffington Post, Fox Small Business, Entrepreneur, and TIME Magazine. You can find him on LinkedIn.

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