One of the best perks you can offer your employees is a company car (or at least access to a company car). At the same time, buying car insurance for a fleet of cars can be incredibly expensive.
To keep it from bankrupting you, try the following tips.
Buy the safest cars possible
The safer the car, the cheaper the insurance. It’s the rule with personal automobile insurance, and it applies to company auto insurance as well!
Screen your employees
It’s wonderful that you want to grant access to company cars to everybody you employ. Unfortunately, if someone is a bad driver or has a history of accidents, violations, and tickets, this is going to increase the cost of your insurance (they become a huge liability to your company).
Check each potential driver’s driving record for problems before putting them on your company’s insurance policy. Sometimes you might have to deny someone access to a company vehicle (at least for a while), but it’s better to be safe than sorry.
Don’t take passengers
If you want to allow your employees to pick up passengers (or goods) in your vehicles, that is going to drive up the cost of your rates. This is because you’ll have to have a policy that will cover lots of people instead of just those in your employ. If you want to save money on your company’s car insurance, have strict rules in place about who and what can be transported in company vehicles.
Use a single company
While there’s no rule that says every company vehicle has to be insured through the same company, you can certainly save money by doing so. Grouping your cars into a bundled package can save you tons of money.
Take the time to explore multiple-car insurance policies while you’re shopping around for insurance on that first company vehicle.
High liability limits
You want a high-liability limit on your policy. Yes, this is going to cost you more per month on insurance premium payments, but in the long run, it is absolutely cheaper than having to pay out of pocket if an employee causes a collision or accident while behind the wheel of a company vehicle.
A good rule is for at least $100K in liability coverage. If you have the option of combined single limits, aim for a minimum of $500K of coverage.
Shop around
One of the best things about car insurance companies is that they are almost always willing to match rates in an effort to keep your business. Do your research and get quotes from a variety of companies (make sure to get these in writing). This way, you can choose the company you trust the most and, with any luck, get to pay the rate you want.
Quote Radar is one of many useful sites allowing you to compare car insurance, as well as compare other types of insurance like business and travel insurance.
Commercial vs. non-commercial car insurance
If your vehicle fleet is going to include things like delivery trucks, you’re going to need to make sure you have commercial auto insurance for those vehicles. Talk to your insurance agent about the differences between these two types of auto insurance. And in the meantime, check out “Do You Need Commercial Car Insurance?” for more information.
Pay in full
Interest and other fees get tacked on to monthly payments. Paying for your annual policy in full can save you a bunch of money. Of course, spreading out the payments over the year can make the payment less of a burden on your bank account.
There are a lot of different variables that go into determining a company car insurance policy. Some of these variables you will be able to manipulate. Others you won’t. If you want to pay the best possible rate, take your time. Compare prices and details. Ask lots of questions. Make sure you understand everything.
Follow these tips. You’ll find the deal you want.
Erin Steiner writes about everything from insurance to inspiration and has hopefully helped you save some money today!