Commercial Auto Costs
Commercial auto insurance premiums are typically higher than personal car insurance policies. Factors that increase or decrease the cost of a commercial auto insurance policy include:
Type of vehicle
Larger loads with more cargo space will need more coverage which also means higher premiums.
Value of vehicles
Premiums for physical damage coverage is a percentage of the vehicle’s value. A higher vehicle value will mean a higher premium.
Number of cars/number of employees driving
The more business vehicles a company needs coverage for, and the more employees have access to these cars, means a higher risk for insurance companies and more insurance costs for business owners.
Distance/radius of travel
Company vehicles that travel longer distances will have higher insurance premiums. Those that cross state lines will have more expensive insurance rates as well.
The more endorsements a policy for an insured vehicle has, the more expensive the premiums will be.
If a business owner increases coverage limits on a policy, the premiums will also be higher.
Higher deductibles will lower premiums but will also cause out-of-pocket expenses to go up or down.
Insurance premiums will also depend on the type of cargo that is hauled. For example, vehicles that haul hazardous material will cost more to insure than cars that haul food as part of a delivery service.
Depending on the insurance provider, lower credit scores can mean higher insurance premiums.
Companies with multiple insurance claims on their records are subject to higher premiums than companies that have no claims on their history at all.
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*Please review your own policy for details on your commercial auto coverage. Coverage options vary by policy and provider.