Today’s small business owner should be looking for every opportunity to save money. If they’re not, then there is a good chance they may be closing up shop sooner rather than later.

One area that can oftentimes be overlooked, but should be reviewed several times a year to search for additional savings, is a company’s auto insurance coverage.

For the small business owner that must make deliveries or customer contact calls using company vehicles, having the right insurance at the right price should be a given.

In order to get the right coverage at the right price:
* Obtain several quotes – You should go online and put together several quotes in order to compare and contrast.  Also research each insurer to see how they rate when it comes to customer service and financial stability;

* Consider a larger deductible – In order to save some money on premiums, you can opt for a higher deductible, but make sure you have the money in place to meet the expense of the deductible should one of your drivers be in an accident. Even the smallest of fender benders can turn into something major if the other party or parties decide to consult a lawyer, claiming they were injured by your employee;

* Bundle coverage – Another option for trimming your insurance rates is by bundling coverage with the same insurer. In the event you have a homeowners, renters, life or health insurance policy with Company #1, consider switching your business auto insurance from Company #2 over to the former. Many insurance companies will offer policyholders a deal when they manage all of their insurance needs;

* Maintain a clean driving record – This should be a no-brainier, but having a clean business driving record goes a long way in keeping your rates manageable. Make sure that any employee using a company vehicle has a good driving record, practices safe driving, and is reminded of this on a regular basis (see below). As for your company vehicle/s, the latest safety features available such as airbags and anti-lock brakes will also help lower your rates.

Employees Need to Take Responsibility Too

Having said all that, the business owner must also make sure they have a policy in place with their employees who use company vehicles to properly and efficiently use them.

It should not come as a surprise in today’s technological world that more employers are either using or considering putting in place GPS systems to track employees while on the clock.

As an example, your employee is scheduled for a client call at the customer’s business for 9:30 a.m. The employee leaves your office a few minutes before for the short drive over to the business, with the intent being the call should take no more than half an hour. Some two hours later, the employee returns and you have questions. First, why were they gone so long? Secondly, why did a short trip result in an additional 50 miles on the company vehicle? Yes, you can see where there could be an uncomfortable situation here for both employer and employee.

For the small business owner, did they clearly state to the employee when they hired them that a policy was in place for such calls, along with the fact that all trips are recorded for both time and mileage purposes?

Not only did monitoring the employee present the employer with the potential for disciplining the worker in abusing their driving privileges while at work, but it also called into question potential insurance issues, as the employee could have been involved in an accident while doing unnecessary driving on the clock.

And you thought being a small business owner did not come with a lot of responsibilities?

Photo credit: electronics.howstuffworks.com

With 23 years of experience as a writer, Dave Thomas covers a wide array of topics to help small business owners succeed.