Most standard commercial auto insurance policies provide an adequate level of cover. However, some things are excluded from cover that must be added on as an endorsement, which increases the premium of your commercial auto insurance. There are several things you can do to reduce the premium of your insurance such as excluding bad drivers, having good credit and having safety features installed in your car. However, no matter what you do to reduce your premium, it will inevitably rise again if you or your employees display bad driving habits.
Why Do Bad Driving Habits Increase Your Commercial Car Insurance Premium?
Bad driving habits not only increases the risk of your car being damaged, but it also puts your life and the lives of other drivers at risk. Bad driving habits result in tickets, citations, license suspensions and points on your driving record. Insurance companies are aware of these bad driving habits and penalize drivers who display them by denying them coverage altogether or increasing their premiums.
Bad Driving Habits that Increase Your Premium
Below are five bad habits that cause insurance penalties:
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- Talking on the phone - Talking on the phone while driving is illegal in most states, this also includes texting while driving. These activities distract your attention from the road, which increases the risk of having an accident, so insurance companies will increase your premium if you get caught doing this.
- Speeding - This goes without saying, but getting several speeding tickets--even if you're just 5 miles over the speed limit-- can increase your premium. This is because speeding increases the likelihood of you getting into an accident by slowing your braking time.
- Intentional Damage - Intentional damage caused by road rage or tailgating may not only land you a night in jail, but it can also cause your insurance premium to skyrocket and most companies will not pay for accidents cause by intentional damage.
- Trying to Beat the Light - Everyone runs a red light now and again purely by accident. This is normally caused by driving too fast when approaching the yellow light or simply not paying attention and driving through the light. This puts other drivers lives at risk and your insurance company will not take this penalty lightly.
- Not Using Blinkers - Turn signals may not seem like such a big deal, but they are used to indicate to other drivers what way you plan to turn. If you're making a left turn from the left lane, but the driver behind you doesn't know this, he may mistakenly think you’re going straight, so he might fail to slow down enough to allow you to turn. This causes accidents and although you may be hit from behind, not using your turning signal can result in tickets, an at-fault accident and definitely raise your insurance premium.