Ridin’ Into Renewal: The Wild Reality of Commercial Auto Insurance
- Andy Adams
- 10 hours ago
- 1 min read
When the Breaking Point Hits
“That’s it, I’m done!” Said the business owner when he looked at his commercial auto insurance renewal rates. “Sell the fleet! No more company-owned autos! From now on, we will give vehicle allowances, and that’s it! I am sick of paying these auto insurance premiums! They just keep going up!”
Why So Many Business Owners Feel This Way
This is a frustration shared by many business owners these days confronting escalating insurance costs for their fleets. Without a doubt, there will be immediate savings as you cut fleet expenses, maintenance, and fuel—assuming the allowances you are now paying are less than what those cost.
The Liability You Can’t Outrun
The problem is that you still have not shed your liability for employees driving in the furtherance of your business. That liability is the biggest cost driver in your commercial auto insurance policy. So, converting your owned fleet to a hired-non-owned fleet of employees driving their personal vehicles on your company business may not solve your insurance premium headaches.
What a Hired Non-Owned Policy Must Include
Here are the essential elements of a hired non-owned fleet policy:
Distracted driving rules prohibiting distracted driving and driving under the influence
MVRs (Motor Vehicle Reports): You need to request MVRs for all employees driving on company business on an annual basis
Random drug and alcohol testing
Minimum insurance requirements for their own personal auto policies ($100K Min)
Vehicle and maintenance standards
Before You Ride Off Into the Sunset
Make sure your non-owned vehicle contains these elements at the very least. Contact your friendly neighborhood insurance agent for help!
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