Commercial Auto InsuranceIf you are considering the purchase of a commercial auto insurance policy, then you may be concerned about how your premiums are going to be calculated. While there are many different factors that go into premium creation, here are a few of the more prominent:

Type of car: The type of car(s) you are insuring has a big effect on your insurance premium. Models that are expensive to repair and often targeted by thieves generally have a higher price tag attached to them when it comes to insurance.

Amount of weekly driving: The more you drive your company automobile, the more exposed you are to insurable risks. Your insurance company will ask for an approximate mileage each week, and that number will be integral in determining your rates.

Location: The location of your business can affect your premiums in terms of both crime rates and weather risks. Areas prone to flooding and hurricanes are likely to have higher premiums.

Storage: The location where you keep or park your vehicle when it isn’t in use will factor into your insurance rates. Parking the vehicle on the street offers more exposure to risk than garage or parking lot parking, and so on.

Deductibles: The higher your deductibles, the lower your car insurance premiums. Of course, the higher your deductibles, the more you must pay out of pocket when there is an incident. And remember—auto insurance deductibles are per incident, not per policy year.

Limits: The less money your insurer potentially must pay in claims, the lower your premiums will be. But if you choose a policy with limits that are extremely low, you could be underinsured and at risk for liabilities.

Antitheft devices: Commercial auto insurance premiums can be lowered if your automobile has antitheft devices in place as they reduce the risks that your insurance company will take on when insuring your vehicle.

The number of employees who drive: The more employees you have driving your vehicle for business purposes, the more your premiums are likely to be. Employees with poor driving records may send rates even higher.

While commercial auto insurance policies guard against different risks than personal policies, the factors affecting their premiums are not that different. Keep that in mind as you are shopping and don’t forget to ask for discounts that apply to personal auto insurance, since many of them apply to commercial insurance as well.

Contact us at ECI Agency today for your free quote on Oklahoma City Insurance coverage for your commercial vehicle.

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Please note that we cannot bind insurance via email, fax, or phone. Any quotes given are subject to underwriting guidelines by the respective insurance carriers. Any reference of coverage used are not intended to express legal opinion as to the nature of coverage, but rather just a brief generalization of coverages. Please read your policy for specific details of coverages.

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ECI Agency, Inc. | 325 Piedmont Rd N | P.O. BOX 600 | Piedmont, OK 73078 | Phone: (405) 373-2977 M-F 8am-5pm