Commercial Auto Insurance Payment Options

As with most insurance coverage, commercial auto insurance typically offers a variety of payment options. Knowing which options are available, and how each can impact your business, can help you make a smart decision when it comes to choosing your commercial auto insurance coverage and provider.
For seasonal businesses, such as snow plowing or landscaping companies, which typically earn the majority of their income during the busy months, this process can be particularly important. When business slows during off-season, vehicles and equipment may sit idle, and cash flow may dwindle. It can become tempting to cancel the commercial auto insurance on your trucks and other vehicles in order to save money. However, doing so may end up costing more in the long run.
Fortunately, most commercial truck insurance companies offer payment options designed to help your business succeed. Learn more about the types of commercial auto insurance payment options, especially those that can help protect seasonal businesses, and follow these tips to ensure you have the best solution for your business.
Commercial auto insurance payment options
Annual payment - This is a lump sum paid to your commercial auto insurance provider on an annual basis. Although this option is the most efficient from an accounting and management perspective, it can be difficult for some business owners to pay the full amount all at once. Another bonus is that when you pay in full, you may enjoy some savings in the form of a discount on your premium.
Monthly installments - With this flexible option, your annual premium is spread throughout the year, in the form of equal monthly payments. Depending on your carrier, you may or may not be charged a small additional fee for the privilege of using the monthly payment plan. If you choose this plan, you’ll want to make sure you payment is on time, each and every month. Although some companies offer a few days grace period, a late payment can cause your insurance provider to drop your coverage.
Payment methods - Most commercial auto insurance providers are flexible in terms of form of payment, too. For example, at Progressive, business insurance payments can be made by credit card, online check, personal check, Western Union, wire transfer, money order or Electronic Funds Transfer (EFT) from your checking account.
Commercial auto insurance for seasonal businesses
Proof of prior insurance coverage is one factor most commercial auto insurance companies use to determine your premium. Maintaining continuous coverage for at least three years shows you are a responsible vehicle owner, and can save you money both in terms of reinstatement fees and lower premiums. If you allow your trucking insurance to lapse during slow months, the immediate savings you gain can be lost when it’s time to get new insurance coverage. To maximize your savings, maintain year-round Comprehensive insurance. In most cases, you’ll end up paying less annually than if you cancel your coverage during off-season.
Commercial auto insurance discounts
Nearly every commercial auto insurance company offers some type of discount. In addition to a discount for paying your annual payment in full, be sure to inquire about common commercial vehicle insurance discounts, such as:
Customer loyalty - Find out if there are any rewards for being a long-term policy holder.
Established business - Determine if the age of your business can qualify you for additional savings.
Special equipment - Inquire if adding any safety or security equipment to your vehicles could reduce your commercial vehicle insurance premium.
Claims-free - See if you can get rewarded for being a safe driver.
Multi-policy discount - Earn an additional discount when you insure your commercial and personal vehicles with the same provider.
Finally, be smart about your commercial auto insurance policy. While cutting corners to save money may be tempting, it could put you at risk. Be sure you understand how much and what type of coverage you need to adequately protect your livelihood. If you’re unsure, consider calling a professional for advice. Progressive is one of the fastest growing commercial auto insurance groups, and specializes in fulfilling the needs of small businesses. For more information, visit ProgressiveCommercial.com.