Pfenninger, Claxton, & Estelle Insurance Group

Yellow VanWhen selecting commercial auto insurance, choose it based on how you will use the vehicle. This can play a role in how much you pay.

Insurers look at your business’s activities to determine how much risk is present. In high-risk scenarios, they often charge more for coverage. To an insurer, risk is all about the likelihood you will file a claim. Be clear about your intentions and uses for your vehicle. This can define your risk and cost.

How Will You Use Your Vehicle?

In some cases, this is obvious. You may have a small fleet of passenger cars. Your sales technicians go from one location to the next. But, be more specific. Will they drive long distances? Is your customer base located in a smaller area? If they are close, or driving is infrequent, this can reduce your costs.

Other uses are more complex. For example, if you have a pickup truck, you may use it for a wide range of things. But, be specific. Do you just use the bed of the truck? Do you haul track trailers or other equipment? Do you haul other vehicles? If so, there is more risk involved. You need a higher level of commercial auto insurance.

Does your truck handle rough terrain or challenging situations? You may be insuring a bucket truck or a platform truck. These need to balance on tough surfaces. This adds risk to the driver and the vehicle itself. You want your insurer to know this. That way, if there is an accident, they can help you cover it.

Avoid Using Your Vehicles in the Wrong Way

Another concern is using the vehicle in the wrong way. For example, you may have a standard box truck. It has weight restrictions. It has a moderate amount of storage room. But, you decide to use it to haul heavy material. The material is beyond the safety level. It is more than the truck can handle. When you do this, it can cause damage to the vehicle. Most often, your insurance policy will not cover this damage. It also increases your risk of causing an accident. That accident may lack coverage as a result.

Commercial auto insurance minimizes costs and risks to you when an accident occurs. The right policy defines this. If you do not have the coverage you need, update your policy with your Muncie IN business insurance agent.

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