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Margins are often tight for small business owners and finding ways to cut costs is essential. For organizations who require automobile insurance, there are many effective ways to save cash and avoid the unnecessary consequences of collisions. From driver selection to risk management, most businesses requiring auto coverage have potential to reduce collision frequency and, ultimately, lower their insurance costs.

Mandip Hullait Director, Commercial Auto, RSA Canada shares her top 5 suggestions of how small business owners can cut the cost of their automobile insurance.

Driver screening
“It’s a good idea to take extra time to screen your drivers, such as checking accident history, conviction record, number of years licensed and continuous driving experience on similar types of vehicles in Canada or US,” says Hullait. “It’s also imperative to make sure the driver has the appropriate class of license required to operate the type of vehicle.”

Tweaking your coverage

Adjusting your policy to fit your specific business needs – with help from your broker – could be a move that creates some significant savings. “Increasing your physical damage deductibles could definitely help lower your premium,” Hullait says. “Also, in some situations it’s worth removing collision coverage from older model vehicles as their values significantly depreciate.”

Hire drivers with proven experience

“Hiring experienced drivers is the first step to maximizing the success of your business,” Hullait says. “Formal guidelines are a necessity to establish acceptable driving qualifications for any employee who regularly drives company vehicles. Also, conviction free drivers are entitled to a discounted rate.  Those drivers with two or more minor convictions are subject to a rate surcharge, so careful driver selection and monitoring drivers on an ongoing basis will continue to help save premium dollars!”

Loyalty to insurer
In today’s competitive market, small business owners may feel the need to shop for a better price at renewal.  To save you time and money, most insurers want to work with you by rewarding your loyalty.  The longer you stay with your insurance provider, the higher the loyalty discount with them.

Multiple lines of insurance coverage with one insurer

Time is precious when you own a small business.  Business owners with multiple insurance needs who place both their automobile and property casualty insurance with one carrier are often entitled to a Multi-line Discount.  This saves valuable time, money and not to mention the convenience of dealing with the same insurer.

For more information on loss prevention measures that small business owners can take to reduce their insurance costs, visit

Bridges International Insurance Services