REPOST: How Small Businesses Can Save Money on Car Insurance

For small business owners, a personal car insurance as applied in business isn’t enough to protect employees and business assets. These entrepreneurs can use a commercial car insurance policy to protect from increased liability risks arising from daily commercial use, including accident-related lawsuits and situations where a personal car coverage might not apply. Because it offers additional coverage, commercial car insurance tends to be costly. Refer to the article below for ways to keep the cost of car insurance to a minimum without hurting the company’s bottomline.

Image Source: nerdwallet.com

Whether you deliver newspapers or own a small business with a fleet of cars, if you use your vehicle for business purposes you probably need commercial insurance. Along with providing all the basic coverage that personal car insurance offers, commercial insurance also covers your employees and protects your business assets in case of an accident-related lawsuit.

Because of the additional coverage, commercial insurance tends to be slightly pricier than personal car insurance. Even so, that doesn’t mean you have to break the bank. Here’s a look at how to buy cheap car insurance for your small business.

Hire people with clean driving records

Locking in cheap car insurance starts with whom you hire. As with personal car insurance, your commercial premium will be higher if you or anyone else included in the policy have driving records marred by multiple accidents or tickets. Unlike some of the other factors that determine your rates, like the age of your employees and where your business operates, this is one thing you can control. If applicants’ duties would entail taking the wheel, you can request a copy of their driving record to see whether they would cause a bump in your insurance premium.

It’s also worth knowing that a number of insurance companies offer special rates to businesses with drivers who have commercial driver’s licenses. Though you need not base your entire hiring decision on that one factor, it won’t hurt to check if an applicant has one or can get one.

Skip insurance agents and brokers

Although insurance agents and brokers can be excellent resources to help you find the best policy, you can often save money by bypassing them. Nowadays there are plenty of online car insurance comparison tools that can do the work for you and point you in the right direction. Use these resources to compile a list of at least five quotes to get a better sense of which offers the cheapest commercial car insurance.

From there, you can call individual insurers to see whether they offer any special small business discounts. For instance, some major providers offer discounts of up to 5% to businesses that have been up and running for more than three years.

Keep an eye out for additional discounts

As well as saving your life, automatic seat belts can also save you money on commercial car insurance. The same goes for other add-ons that boost your vehicle’s safety, such as rearview cameras and anti-theft systems. Any type of device that lowers the risk of accident or theft could get you a better deal on your insurance, as it makes it less likely you will have to file a claim.

Final word

There’s no way around buying commercial car insurance if you use a vehicle for business purposes. At the end of the day, though, you and your business will be better off because of it. Just remember to do your due diligence before committing to an insurance company by collecting quotes and researching the types of discounts offered.

Freeway Insurance has the expertise, experience, and resources to provide people unlimited insurance choices suited to their needs and financial status. Since 1987, the company has been constantly searching for ways to diversify insurance options both for personal and commercial use, from the most basic to premium plans in order to give people the appropriate coverage at affordable prices. Discover the right insurance coverage for your needs by clicking here.

REPOST: The least expensive 2014 cars to insure

Getting the best auto insurance rates can hinge on the type of vehicle one buys. Interestingly, sports utility vehicles and minivans are much cheaper to insure, writes Jeffrey Steele of Insure.com.

Image source: MSN.com

If you want to save money on auto insurance, spring for an SUV or minivan. Insure.com's annual ranking of the vehicles with the best car insurance rates is dominated by non-sedans.

A few years ago, minivans held a good grip on our "least expensive to insure" rankings. But small and mid-size SUVs have been increasingly grabbing ranking spots. This year, minivans account for just five of the top 20 places. (See the 2014 rankings for the most expensive cars to insure and car insurance rates by state.)

And Jeep grabs a remarkable seven of the 20 "least expensive to insure" spots.

The advantages that propelled the minivans to the best spots are now being seen with SUVs: Family-friendly vehicles used mainly for safely ferrying kids around to Scout meetings and soccer matches. The parent driving the kids is among the least likely to speed, crash or have a claim.

And good rates always boil down to claims: When drivers of a certain vehicle submit fewer claims and/or less expensive claims, all owners that vehicle benefit with better car insurance rates.

That brings us to the Jeep Wrangler, Patriot, Compass and Grand Cherokee. Their good insurance rates hinge on Jeep owners.

While Jeeps exude an "adventurous spirit," they're usually not used for reckless abandon.

Least expensive 2014 cars to insure

1. Jeep Wrangler Sport	$1,080
2. Honda Odyssey LX	$1,103
3. Jeep Patriot Sport	$1,104
4. Honda CR-V LX	$1,115
5. Jeep Compass Sport	$1,140
6. Chrysler Town & Country Touring	$1,140
7. Subaru Outback 2.5i	$1,144
8. Dodge Journey SE	$1,149
9. Honda Odyssey EX	$1,149
10. Dodge Grand Caravan SE	$1,158

According to Karl Brauer, senior analyst for Irvine, Calif.-based Kelley Blue Book, owners of Jeeps tend to be single or married women under age 45, who display prudent driving behavior.

"While there is an 'adventuresome' image to the Jeep brand, for every Wrangler that does serious off-roading, there are dozens of Wranglers and Grand Cherokees and Compasses -- and CR-Vs, Siennas and Traverses -- that are used to carefully haul kids around suburbia at sub-50-mph speeds most of the time," he says. "This demographic and these driving conditions don't cause a lot of accidents, thankfully."


While advertising may show Jeeps on craggy rocks, it's not unusual for Jeeps to never go off-roading.

Mark Takahashi, auto editor for Edmunds.com in Santa Monica, Calif., agrees that most Jeeps are regarded as family vehicles. "If you're driving your family around, you will drive more carefully, and not take chances, because you have a vested interest in being a careful driver," he says.

Jeep Wranglers in particular are very economical to repair, which helps keep insurance rates down. If you get a dent in your door, the body shop can easily remove the door.

"It's usually bolted rather than welded together. Look at the doors of a Jeep Wrangler to this day, and they're removable, just like the old Army Jeeps," says Takahashi.

Riding high

Joe Wiesenfelder, executive editor of Chicago-based Cars.com, agrees Jeep's victory on the "least expensive to insure" rankings is a reflection of both how safely Jeep owners drive their vehicles and the cost of repair and replacement of Jeeps.

"You'd certainly be able to theorize that the owners of any one on this list are less likely to have collisions, and that the vehicles are less likely to be stolen. If they're low-volume cars, that suggests less of a replacement part market" for stolen parts.

Jeeps and SUVs also likely have an advantage because of their height. "They are higher-riding than the average car," Wiesenfelder says. "So if they are in a collision with an average car, that car will have greater damage than the Jeep."

Methodology

Insure.com commissioned Quadrant Information Services to provide average auto insurance rates for 2014 models. Averages were calculated using data from six large carriers (Allstate, Farmers, GEICO, Nationwide, Progressive and State Farm) in 10 ZIP codes per state. Not all models were available, especially exotic cars. More than 850 models are included in the 2014 study.

Averages are based on full coverage for a single 40-year-old male who commutes 12 miles to work each day, with policy limits of 100/300/50 ($100,000 for injury liability for one person, $300,000 for all injuries and $50,000 for property damage in an accident) and a $500 deductible on collision and comprehensive coverage. This hypothetical driver has a clean record and good credit. The rate includes uninsured motorist coverage. Average rates are for comparative purposes. Your own rate will depend on personal factors.

Visit the Freeway Insurance website for more on affordable car insurance.