Spring has finally sprung in Northeast Ohio and everyday my street is lined with contractors’ vehicles. Landscapers, lawn sprinkler repair, painters, flooring installation, you get the idea. I often wonder how did the employer decide which one of their employees should have access to the company’s vehicles.

At fault accidents are the most common cause for premium increases and most accidents are caused by driver error according to our partners at Central Insurance. Driver errors include speeding, distracted driving (see my blog from February of 2022) following too closely and driver impairment.

As the owner of a business do your research before hiring an applicant. Obtain the applicant’s motor vehicle record and review it with your Trusted Choice Independent Agent if you have any doubts that the record is acceptable. While prior performance does not guarantee future results, it is a pretty good indicator when it comes to a person’s driving habits. Just as in personal insurance younger (under age 25) drivers will typically be more expensive to insure on your commercial policy than a more experienced operator. If your contracting business has larger/heavier vehicles (over 26,000 pounds GVWR) ensure that the operator has a Commercial Driver’s License (CDL).

Consider the vehicles you are purchasing, a new Ford F-250 Super Duty pickup can easily cost over $50,000.00, when premiums are being calculated this is taken into account, along with the radius and territory of operation. Considering an older vehicle in good shape that may not need comprehensive and collision coverage could be a good business decision, and assist you in reducing your insurance expenses.

Last but not least I will get on my telematics soapbox. If your insurance company offers you discounts if you use monitoring devices in your commercial vehicles such as Azuga take advantage of them. The data collected can assist you in your operation as well as reduce your commercial auto premiums.

Contractors are very busy right now but don’t lose sight of the importance of monitoring your commercial auto premiums. So, before you purchase or renew your insurance contact the Trusted Choice Agents at Richey-Barrett.