What can you do to manage your commercial auto insurance premiums? Auto insurance rates are based on numerous factors. Factors are frequency and severity of crashes, auto repair costs, medical and hospital costs. In addition, lawsuits and court judgments, insurance fraud, vehicle type, and deductibles.
This means your company’s inherent level of risk is a factor that impacts the premium you spend on auto insurance. However, other factors not controlled by the business affect that amount.
Frequency vs. Severity
Both accident frequency and severity affect the part of your premium that covers losses.
Frequency describes the number of accidents that happen and how often they occur. It stands to reason that the higher the premium, the more insurers pay in claims. The amount paid per claim represents the severity.
The make and model of your automobiles can likewise impact your level of risk. This can be another reason for the raise of your premiums.
Risk Management Techniques to Manage Your Commercial Auto Insurance Premiums
One of the very best things you can do to manage your automobile insurance premiums is implement risk management techniques. These can help you to manage the frequency of mishaps. Improving your drivers’ performance can make a big distinction: A research study by the U.S. Department of Transportation revealed that 90 percent of all collisions are a result of driver action, habits, and mindset. What is another way to reduce your premiums? Making your drivers safer and purchasing dependable automobiles can impact both frequency and severity of accidents. Some actions to take consist of the following:
- Select excellent drivers. Conduct background checks and request routine motor vehicle driving records.
- Provide regular driver safety training. This applies for both new hires and as a refresher course. This will help guarantee that both new and seasoned employees are properly prepared.
- Train employees on reporting a loss right away after a crash.
- Monitor drivers to guarantee their finest efficiency.
Your business’s commercial insurance premium is impacted by factors that you cannot directly manage
More Than Your Premium
According to National Council on Compensation Insurance data, what is the most expensive lost time? It’s employees’ compensation injury claims that result from motor vehicle crashes.
For concerns about your Commercial Auto Insurance coverage, get in touch with the experts at TPG by calling 909.466.7876. Also, visit our webpage for more information on Commercial Insurance today! We want to help you protect that which you’ve worked so hard to accomplish!