Commercial Car Insurance: Why Cheaper Is Not Always Better

Written By Jackie Lorick

In today’s economic climate, almost everyone is looking for the best deal on goods and services. While we all love a good deal, “cheap” may not always result in the best coverage when shopping for commercial car insurance.

Those of us in South Carolina who have been in the insurance industry for a few years hear “find the lowest insurance for the best price” on a daily basis. The problem is, when clients focus on cheap, they tend to lose sight of the coverages they are giving up. While cheap commercial car insurance policies can help you save money in the short term, they can also potentially result in some very costly out-of-pocket expenses further down the road.  

It’s important to remember that your business relies on your commercial car insurance after an at-fault accident, or perhaps even a not-at-fault accident. In those events, you do not want to be told that you do not have coverage.

Of course, that is not to say that there are not ways to save money on your auto policy! One cost savings option would be to have lower liability limits on your commercial car insurance but have your independent agent quote an umbrella policy to provide an additional layer of coverage. At times, this can be more cost-effective than carrying the highest liability limits. Another cost savings measure would be to increase your collision and comprehensive deductibles, especially if you do not plan on filing a claim that is below a certain dollar threshold.  

When it comes to your commercial auto policy, it is best to steer clear of cheap car insurance and instead focus on what coverages are most important to you and your business. Claims on a commercial auto policy tend to have higher payouts compared to personal auto policies, and it is important to remember when the vehicle is on the road, everything owned by your business is, in essence, tied to the hood of that vehicle driven by you or your employee.