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How Are Commercial Auto Insurance Quotes Determined in Worcester?

by Lisa Hirbour / November 14, 2016

Talking to your trusted business insurance agent is easy, and writing the check out for your commercial auto insurance is a fairly routine process and simply part of doing business in Worcester. However, you may be curious about what type of information is used to determine quotes and why.

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Determining Rates for Commercial Auto Insurance in Worcester

Assessing Risks

Whether you have a bakery picking up supplies or making store deliveries, you know as a business owner, there are risks every time you or employees get behind the wheel. Of course, insurance providers are well aware of this, and they base much of their rates on risk assessments.

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Risk assessments help to determine how much of a risk your drivers represent. Drivers with poor driving records or those considered to be high risks may typically end up costing business owners more to insure.

Consequently, insurance carriers have developed applications to cover questions about the type of business you run, how vehicles are used, and your insurance requirements.

Mileage/Where You Drive

Car insurance quotes can be higher depending upon where you drive, how many miles you drive, and where vehicles are parked during the day and overnight.

  • Cars, trucks, and vans that are routinely driven in high traffic areas and places that experience severe weather are exposed to more risks and accidents.
  • Businesses that employ several drivers that drive a substantial number of miles daily are at more risk for accidents and can cost more to insure.
  • Vehicles parked in safer areas may cost less to insure. However, if they are in urban areas of the city with higher rates of vandalism and thefts, rates usually reflect these additional risks.

Driving Histories and Records

Careful consideration should be given to hiring new employees that will drive for your company. Drivers with moving violations, collisions, or a history of insurance claims may generally cost substantially more to insure than drivers with good records and histories.

What You’re Transporting

Insurance carriers also take into consideration what you’re transporting when driving and what level of risk it represents when purchasing commercial auto insurance in Worcester. For example, many businesses transport supplies, people, or make food deliveries, which may not pose as much risk as other transporting companies carrying dangerous supplies.

Types of Vehicles Being Insured Can Affect Commercial Auto Insurance in Worcester

  • New vehicles with expensive computer equipment and luxury accessories may cost more to insure.
  • Vehicles that are more likely to be stolen may increase premiums.
  • Vans, trucks, and cars that are cheaper to repair can save on insurance costs.
  • Vehicles with good or excellent safety records may cost less to insure.

Safety/Security Devices

Some insurance rates may be reduced if vehicles are equipped with safety or security devices such as automatic seat belts, air bags, anti-lock brakes, alarm systems, or GPS.

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Deductibles

Deductibles are the amount paid on claims before insurance picks up the remaining balance. Deductible amounts may vary between insurers. However, most insurers usually allow you to choose your deductible amount. Choosing a higher deductible may save a small amount on your premium. Lower deductibles may increase premium costs.

Coverage Limits

Other than meeting state requirements, business owners can choose the types of coverage and limits. Policies with more coverage are likely to cost more. Less coverage often results in smaller premiums.

Choosing drivers carefully and selecting adequate coverage can make a difference in what you might pay for commercial auto insurance quotes in Worcester or any other towns in Massachusetts. Talk to a trusted local agent to get the help you need today!

Tags: Commercial Auto Insurance

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