When buying bus insurance, it is important to know the common mistakes that people make. These mistakes can end up costing you a lot of money and time down the road. We will discuss 10 of these major pitfalls that you should avoid when purchasing bus insurance for your business or organization!
1. Focusing too much on price
It is easy to get distracted by bus insurance providers that offer extremely low quotes. However, the cheapest quote is not always your best option. If a provider offers you a cheap rate but does not seem reputable, take your business elsewhere! It is better to spend a few extra dollars and have peace of mind than to risk having to pay for damages later on because you settled for a bad deal.
2. Getting bus insurance from the wrong source
When you are looking to buy bus insurance, there are certain places that you should never look first. For example, buying your policy off of the Internet is not the best way to get coverage; sites like ours are much better. The best way to purchase bus insurance is by talking to an agent that can put together a quote for you and assist you in choosing the right policy.
3. Focusing on price over type of coverage
Bus insurance policies come in all shapes and sizes, so it is important to realize this before buying one. The price of a policy does not always indicate the quality, so it is important that you read the fine print when choosing your coverage. Some policies are more appropriate for school buses while others are better for commercial busses. Do some research before settling on a policy in order to make sure you are getting exactly what you need!
4. Failing to read the contract
The bus insurance policy that you are buying is a legal document just like any other. This means that it contains all of the rules and regulations that you must follow, so be sure to read it carefully! Take your time with the contract and ask yourself if there are any parts of it that you do not fully understand. If there is, do not be afraid to ask your broker for clarification!
5. Failing to get a Road Service Plan (RSP) and/or an Emergency Ride Home (ERH) plan
When you buy bus insurance, it is also important that you consider two additions that we offer here at The Wright One: the RSP and the ERH. The RSP ensures that you will never be stuck in a dangerous position on the road when your bus breaks down. It also guarantees that you will get where you need to go and can avoid wasting money on tow trucks or other types of roadside assistance.
The Emergency Ride Home (ERH) plan is just as important as the RSP, because it allows you to get a ride home for yourself and your passengers if something unfortunate happens. If someone in your company has an accident while riding the bus, the ERH plan will ensure that they get a safe ride back to their place of residence!
6. Getting too many varieties of coverage
If you don’t know what you need, it can be difficult to decide on a policy. However, the more insurance varieties you purchase, the higher your price will get! This is why it’s important to narrow down exactly what you want. If you only have one bus and do not plan on getting any more vehicles in the future, choosing a policy with just the basics is the best option for you.
7. Getting coverage that does not fit your needs
Another common mistake that people make when purchasing bus insurance is getting too much coverage. If you find yourself paying for many different types of protection, then it might be time to look into a slightly cheaper policy. The last thing you want to do is pay for coverage that you will never use, so be sure to read the policy before buying it!
8. Failing to get coverage for other vehicles on the road
If you are planning on driving other vehicles while your bus is out of service, then it is important that you purchase insurance for them as well. Your provider should offer you a policy that can protect more than just your bus! This way, you won’t have to pay extra money to get coverage for your other vehicles while your bus is in the shop.
9. Not getting enough liability insurance
When you are buying bus insurance, there is one coverage that you should never skimp on: liability. If you get into an accident while bringing a passenger from A to B, your passengers will have legal recourse against you. In order to protect yourself, you must purchase enough liability insurance so that your company is covered in the event of a lawsuit. The minimum coverage should be $1 million per person and $2 million per accident.
10. Failing to get accident forgiveness
If you are already an established bus company that has never had any accidents or caused any damage, then you are eligible for what is called “accident forgiveness”. This means that your insurance rates will not go up if you have a minor fender bender with your bus. If you drive safely and do not want to pay more in bus insurance premiums, then be sure to ask your company about accident forgiveness.
What is accident forgiveness?
Accident forgiveness, also known as claims-free discount, means that you will not have to pay higher premiums if you have a minor fender bender with your bus.
How can I save money on bus insurance?
One way to save money on bus insurance is by purchasing just the basics for all of your vehicles. If you don’t plan on getting any more buses, then there is no sense in paying for unnecessary coverage! Read over your policy before signing up so that you know exactly what you are getting into.
How much coverage do I need for liability?
The minimum coverage that you should purchase for liability is $1 million per person and $2 million per accident. This way, your passengers will have legal recourse against you if they get injured in an accident and need to file a lawsuit!
Why should I get the RSP and ERH plans?
If you purchase the Road Service Plan (RSP), then you will get help with accidents, breakdowns, and lockouts, which means that you won’t have to pay for expensive tow trucks. The Emergency Ride Home (ERH) plan is just as important because it ensures that your passengers will always get home safely if something happens while they are riding in the bus!
Upon Further Review
You’ve made it to the end of this blog post, and hopefully you learned a thing or two about what not to do when buying bus insurance. We hope that these mistakes help make your future purchase smooth sailing from start to finish! If there’s anything else we can provide for you, please don’t hesitate to comment below with feedback on our article. Have any other advice? We’re all ears! What are some of your favorite tips for purchasing bus insurance? Comment below and let us know!