Factors that Determine Commercial Car Insurance Rates
Businesses all over the world use cars, trucks, and vans to transport their goods locally or even over larger distances. Regardless of the scale of business, if vehicles are a part of it, they need to be insured.
Unforeseen events such as accidents, damage, or theft can not only set you back financially, they also have a negative impact on future growth prospects. It is essential to insure vehicles used for business as they are exposed to a higher risk than personal vehicles.
Commercial car insurance protects your business assets, employees, and drivers or contractors hired to drive the vehicles. Melbourne Car insurance companies offer a variety of insurance plans to protect against anything from fire, theft, liability. To choose a plan best fitted to your business requirements it is important to understand how insurance rates are calculated.
AGE: Young drivers are statistically more likely to be involved in an accident than older drivers. This means younger drivers pose a higher risk and thus will have to pay a higher premium. Some policies even offer a discount for older more experienced drivers
TYPE OF VEHICLE: Commercial vehicle insurance policies cover a wide range of vehicles including vans, sedans, goods carrying vehicles, wagons, and earth moving equipment. The cost and premium rates vary accordingly depending on the type of vehicle you use for business. Specialized high-performance vehicles can be expensive to repair. Some parts may need to be imported. These are all factors that drive up insurance rates. A commercial van insurance Melbourne rate will be different than that of a commercial SUV.
SECURITY: Insurance premium rates also depend on which routes your commercial vehicles frequent and where they are parked. Certain areas pose a higher risk of theft which will require a higher premium. Alternatively, cars fitted with safety and security devices reducing the risk of theft or damage will get you lower rates.
HISTORY: When it comes to commercial vehicles, it is important to have regular drivers allocated to drive them. Listing regular drivers can affect the rates of your insurance policy. Their driving history, license suspensions, claims history must be included. Failing to do so may result in additional excesses, reduction, or refusal of a claim.
EXTRAS AND EXCESS: Extras are add-on protection you can choose to go with your commercial car insurance. For example, some policies even cover the tools used for your business, keep in your vehicle, against theft. Each extra will increase your premium. Whereas, the more excess you pay, the lower it will be. Excess payment is what a policyholder has to pay in the event of an at-fault claim. Thus it is advisable to keep it at an affordable amount.
Keeping these points in mind can help you choose the insurance plan best suited to your business requirements. Commercial Van insurance in Melbourne has various options available to safeguard you and your business from unforeseen damage and losses. Each commercial car insurance policy is different. Therefore, it is highly recommended to do your research and compare policies before choosing.