In the world of Commercial Auto insurance, there are a few myths that are heard pretty often. Below is a list of myths debunked by Progressive, a leading commercial auto insurer, in an effort to help you make the best decisions when shopping for coverage.
- Myth: If you have a seasonal business, you can save money by canceling in the offseason.
Not necessarily. If you cancel your insurance policy, your stored vehicles won’t be protected. While you might not need liability insurance during the offseason, Comprehensive coverage provides protection against incidents, such as vandalism, theft and weather. Additionally, a Comprehensive-only policy provides continuous insurance, which may save you money in the long-run. If you drop your insurance completely, you may pay significantly more to purchase a new policy when your peak season rolls around because most insurance companies ask for proof of continuous coverage to get you the best rate. So consider dropping to Comprehensive-only in the offseason, rather than dropping coverage completely.
- Myth: Your employees are covered when they drive your business vehicles.
This isn’t always true. Some insurers will only extend coverage to drivers who are named on the policy. Check and see if your insurer has something called "permissive use," which means that all of your drivers are covered as long as they have your permission to operate the vehicle.
- Myth: It’s cheaper to buy all of your business insurance products from the same company.
Chances are you’re going to need a wide range of coverages to protect your business. Depending on what kind of work you do, you might need everything from commercial vehicle insurance and general liability to workers’ compensation. While it might be easier to buy all of these products from the same company, you could save big bucks by buying your policies from separate providers. Shop around to find the best deal, or ask your local agent for quotes from multiple companies.
- Myth: All insurance companies offer 24/7 service.
This one may come as a shock to many people, but a lot of insurance companies are only available during regular office hours. That can make filing a claim, adding a vehicle to your policy and paying bills inconvenient. The more available an insurance company is, the faster they can get you back on the road. This carries importance in a business where time is money. Before you buy, check with your insurance company to make sure they’re available when you need them.
- Myth or Fact
Wonder if one of your perceptions about vehicle insurance is myth or fact? Talk to your local agent. Just like your customers trust you as an expert, your independent agent is an expert at finding you the right coverage for your business.