If you use a vehicle (or many vehicles) as a way to make a living, it’s imperative to make sure you have the right coverage. Commercial auto insurance is designed to protect business owners, their employees, and their vehicles. And the word “commercial” doesn’t necessarily mean it’s designed solely for fleet owners. Commercial auto insurance can also covers those who drive their personal vehicle for work.
Lane’s Insurance of Alberta’s professional insurance brokers can help you find the perfect commercial auto coverage to keep your business operational and viable.
When Business Owners Need Commercial Auto Insurance
- If company-owned vehicles are used to transport equipment, tools, goods or materials that are part of your business. A delivery truck is the most obvious example of this, however repair and service vehicles also fall into this category, such as a plumbing or landscaping companies.
- You or your employees drive company-owned, registered commercial vehicles as part of your work duties. This means using a company vehicle to head out to off-site meetings, visit job sites and pick up merchandise.
Keep in mind that all vehicles that have commercial license plates and/or license tags must be covered under your commercial auto insurance policy.
When Individuals Need Commercial Auto Insurance
Commercial goods, equipment and materials are not covered by standard personal policies, and you need to protect these assets from damage and/or theft. If you’re using your personal vehicle as a primary tool for commercial and/or business activities you may need supplemental commercial auto insurance. You should consider additional coverage if:
- You are hiring out your vehicle for any reason. This does not include ridesharing, for which there are specific policies available.
- You are using your car to make commercial deliveries.
- You are transporting equipment to a site for commercial use.
- You are using your personal vehicle to carry specialized commercial equipment from one place to another.
Lowering Your Commercial Auto Insurance Rates
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.
One of the best ways to keep your commercial auto insurance rates in check is to consistently train operators in defensive driving tactics. The fewer driving infractions that are racked up, the better an insurance pool you will be placed in, which translates to lower costs. If your insurance company has reason to believe you pose a lower level of risk, they will offer you a lower price on the coverage you’re looking for.
More ways to lower your commercial auto insurance rates include:
- Adjusting limits and deductibles. Raising your deductibles and/or lowering your maximum coverage limit will both reduce your overall monthly or annual rates.
- Investigating discounts for multiple policy holders. If you have multiple policies through the same company, you may qualify for an insurance discount of as much as 20 per cent.
Consider Telematics
Telematics (or usage-based insurance (UBI)) is available for fleet owners in Alberta. The technology uses devices placed in each vehicle’s to collect and analyze advanced data regarding vehicle usage. Telematics tracks driving habits such as speed, cornering, braking force and frequency, which are all key indicators of how your operators are handling your vehicles.
Of all the available options on the market, telematics offers some of the best money-saving potential. Here’s why:
- It allows business owners and commercial fleet managers to track the driving habits of employees, helping them assess and reduce risk.
- It gives business owners and fleet managers important insights into vehicle expense accruals (related to fuel consumption, vehicle maintenance and repair, etc.).
- It is capable of determining whether a particular vehicle has been unused for an extended period of time, and adjust that vehicle’s coverage accordingly.
Trust Lane’s for Your Commercial Auto Insurance Needs
When buying insurance for a commercial vehicle, it is important to deal with an experienced broker. This isn’t just your car – it’s your livelihood, and delays will cost you money. At Lane’s Insurance we make it our business to provide the best commercial auto and trucking insurance coverage at a competitive price, so you can rest assured that your business vehicles are protected.
