Impacts Your Commercial Auto Insurance Policy Premium

What Impacts Your Commercial Auto Insurance Policy Premium?

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Business owners, here’s what affects the rate of your commercial auto insurance.

California business owners may wonder why their insurance rates for commercial auto coverage have increased each year. For this reason, it’s important to know what impacts rates. Check out why your premium may be higher than you thought.

Increased traffic. California is known for its congestion and jam-packed highways. Since 2015, the total miles driven increased in California at a much higher percentage than the rest of the country. With more vehicles, more accidents occur.

Distracted drivers. One-quarter of crashes involve drivers talking on phones or texting.

Rising medical costs. Medical care costs are climbing more than 1.5 times faster than other costs. When accidents happen, diagnostics and treatments come at a steep price.

More fatalities and severe accidents. Accident rates per person and per mile of driving are rising in California.

Untrained or inexperienced drivers. There is a shortage of skilled drivers with a clean driving record. As a result, there is a greater risk for accidents.

Higher auto repair costs. With record numbers of new car auto sales, the repair costs, equipment and parts are more expensive. Even minor repairs can cost big bucks.

While you can’t do anything about needing commercial auto insurance, there are ways in which you can control the cost. Protect your business on the roads by visiting the team at Hoffman Brown Company in Sherman Oaks, California. We serve businesses with auto insurance to suit their needs and have done so since 1961. Give the team a call today; they are always happy to help.