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How To Be A Great Insured ... And Why It Matters To You!

How to be a great Insured

 

What makes a commercial auto driver an attractive “Insured” to an insurance company? 

While it might not be something you have spent time thinking about, the answer to that question could have a meaningful impact on your wallet and allow you to keep more money in your pocket.

As a professional driver, your commercial auto insurance costs are a significant expense alongside gas, vehicle maintenance, local licensing requirements, and credit card fees. Keep reading this post to learn more about what it takes to be eligible for the most affordable commercial automobile insurance coverage possible.

Whether you purchase your commercial auto insurance at Amalgamated Casualty Insurance Company or someplace else, there are four basic considerations that commercial auto insurance companies use to assess what type of risk you pose and what premium will be necessary to insure you: accident frequency, accident severity, moving violations, and the primary area you operate in.

FREQUENCY 

How often you become involved in incidents or accidents has a great impact on how risky you appear to an insurance company. Drivers with clean loss records for three to five years are more desirable risks and are often eligible for preferred rates which lower their overall premiums.

While insurance exists to protect you and the public from unexpected losses and events, research has shown that a small percentage of crash-prone drivers are responsible for a large percentage of overall accidents. In a recent Louisiana study, 34% of crashes are repeatedly committed by the at-fault crash-prone drivers who represent only 5% of the total licensed drivers in the state. (1).  Frequent involvement in accidents and incidents (regardless of fault) not only require your insurance provider to pay out more in losses, but they will also incur more in expenses to fairly investigate and handle claims.

SEVERITY

Severity describes the type of losses you have experienced as a driver. A fender-bender with minimal damage will impact your insurance costs differently than a serious accident involving many parties.   

Accidents involving pedestrians and bikers often are severe accidents because the injured party is not protected by a vehicle. Driving safely requires heightened caution around cross-walks, bike-trails, stadiums, conference centers, and airport & hotel pick-up stands as well as any other area that has heavy pedestrian or bike traffic. 

When an accident does occur, the best thing you can do to to limit the potential severity of your claim is to promptly notify your insurance company of the accident. This gives your insurance company the ability to promptly investigate and handle the claim.  Everyone involved in accident benefits from having a fair and quick resolution after an accident.

MOVING VIOLATIONS

Insurance providers consider any moving violation(s) on your driving record to assess the risk associated with extending you insurance coverage. Many drivers on the road have no moving violations or infractions at all on their license. Speeding tickets, traffic light violations, illegal U-turns, or failure to yield citations all signal a pattern of aggressive driving. Therefore, to be eligible for the best possible rate you need to have a clean driver’s license. 

AREA OF OPERATION

While this risk factor has less to do with your specific driving behavior, it is used to determine an appropriate rate to insure you. Within a specific state, the legal environment and the traffic on the roads can vary widely. Different counties within the same state may have different required limits for liability coverage. These are a couple of reasons that explain why premiums can vary substantially even within the same state.

CONCLUSION

As a driver, you want the most affordable insurance premiums possible that adequately protect your business. Preferred rates are for preferred, professional drivers that drive safely, report accidents promptly and pay their premiums timely. 

Drive smart and safe travels!

 

  • Estimating likelihood of future crashes for crash-prone drivers, available online at sciencedirect.com