Cheap Commercial Auto Insurance

cheap commercial auto insurance

Establishing your own business can come with its fair share of uphill battles. You will need affordable commercial auto insurance to protect your company. The world of commercial auto insurance can be a tricky one to navigate. However, Insurance Navy will serve as your guide, answering frequently asked questions and concerns about what types of vehicles you can get covered and how much it will cost your company.

What is Commercial Auto Insurance?

Affordable Commercial auto insurance covers vehicles a company uses to conduct business. This type of business insurance covers a variety of vehicle types and offers expansive coverage limits. It can also assist you during specific business-related incidents like protecting a trailer you are towing.

Affordable Commercial vehicle insurance is handy to protect your business and its assets in an accident. Without it, your company could find itself struggling to survive. It is crucial if you rely on travel to conduct business successfully.

Who Needs Commercial Auto Insurance?

Anyone who uses vehicles for business needs a commercial auto insurance policy. Suppose you have a car that is used for things like making deliveries or transporting equipment to the job site. In that case, it needs to be protected by a commercial auto policy. This is especially true for vehicles registered as commercial autos and with commercial license plates.

All business owners who must drive to operate their company should obtain a commercial vehicle insurance policy. Not only will business insurance provide you with financial protection, but driving a vehicle without any level of commercial auto insurance is illegal in nearly every state.

You have a responsibility as a driver to abide by state laws. If caught without commercial auto insurance after an accident, you are on the hook for the following expenses and any legal penalties. Penalties can range in severity from fees to jail time.

What Does Commercial Auto Insurance Cover?

Commercial auto insurance is very similar to personal auto policies in terms of the damages it covers. Standard policies include liability coverage with policy add-ons available to give you and your employees better protection.

Below are the different Commercial auto insurance coverages available to your business:

Liability Coverage

Liability insurance covers any bodily injury and property damage that you cause in an accident. Commercial Auto Liability coverage is a crucial part of any commercial auto insurance policy and is the state standard.

To be considered a legal driver, you must carry a specific amount of commercial auto liability insurance in nearly every state. But also remember that a liability policy will never cover compensation for injuries or personal property damage following an accident.

Collision Coverage

Collision insurance coverage compensates for physical damages to your commercial auto that result from an accident with another car. This type of insurance is always paired with comprehensive coverage. It covers the repair costs for your vehicle regardless of who was found to be at fault for the accident.

Comprehensive Coverage

Comprehensive coverage protects your commercial auto after it sustains damage from a non-collision-related incident.

This can include vandalism, theft, fires, extreme weather damage or natural disasters. When filing a claim for comprehensive coverage, your car must not have been in use when the damage occurred.

Other Types of Coverage

You have some options if you want to expand your commercial insurance coverage and reduce liability.

Below are some common types of insurance you can purchase to strengthen your commercial car insurance policy and receive the most benefits.

Medical Payments

Medical payments coverage, also called MedPay, covers medical bills you and any passenger accumulate following an accident. It pays the medical expenses no matter who is found to be at fault.

Roadside Assistance

If you have mechanical problems, roadside assistance will help with tools to resolve various issues with your commercial vehicle. This can include fuel delivery, fixing flat tires, towing, and locksmith services for your fleet vehicle.

Rental Car Reimbursement

Following a collision, your vehicle may need to spend some time in a shop. But suppose you’re running a business that relies on your cars for income or sales. In that case, this can jeopardize the way you conduct your business.

Rental reimbursement will pay for a rental vehicle while waiting for repair.

Uninsured/Underinsured Motorist Coverage

Despite requiring insurance in several states, many drivers need coverage to get behind the wheel.

Uninsured motorist coverage can help with your employees medical expenses or to fix your company vehicle after a collision when the other person’s liability coverage has low policy limits.

Customizing Your Commercial Auto Policy

Like other types of business insurance, commercial auto insurance is customizable with a wide range of coverages. Not only do you have the chance to include specific policy add-ons to your coverage, like collision and comprehensive insurance, but you can also adjust your coverage limits. Many commercial automobile policies offer coverage up to $1 million.

Accidents can be very harmful, depending on the type of company vehicles your business utilizes. It would help if you also looked into expanding your policy with specific coverage types like non-owners coverage. Non-owned auto insurance protects drivers who do not own a vehicle yet still have to drive one.

Commercial vehicle insurance can be designed to cover specific areas of your industry, such as having to lug cargo distances. When establishing liability coverage limits, you want to make sure that you will be fully covered in the event of a collision or total loss.

Please do so to ensure your business and assets are protected, as the liability costs associated with accidents can be overwhelming.

Suppose you need help establishing a business insurance policy for your company. In that case, your insurance agent can give you some advice and insight into what would be a wise fit. Agents are a precious resource when navigating any insurance.

How Much Does Commercial Auto Insurance Cost?

It’s difficult to answer this question since business auto insurance costs heavily depend on the needs and finances of any given business or individual.

For a basic idea of what you can be looking at, here are some percentages taken from data regarding small businesses and how much the average cost is for commercial car insurance annual premiums:

  • 44% of small businesses pay under $1,500 annually for commercial car insurance.
  • 34% of small businesses pay anywhere from $1,500 to $3,000 annually for commercial car insurance.
  • 22% of small businesses spend over $3,000 annually on commercial car insurance.

What Determines Commercial Auto Insurance Rates?

There are several things to consider when insurance providers establish your rates. Facts about you, your business, and your vehicles are noted. You can customize or control some aspects for better rates, while you cannot do so for others.

The list below outlines what your insurance provider will look into when settling your commercial vehicle insurance rates.

  • Type of vehicle - The make, model, and year of the vehicle you are trying to insure will be considered. The larger your vehicle is, the higher the insurance rates will be.
  • Driving records - Both you and your employee’s driving records will be considered when establishing rates. Insurers need to know how much of a risk a driver is before handing out coverage. Your premiums will increase if they find several accidents on your employee’s driving record.
  • Industry - Some industries come with higher risks than others. A construction company with commercial car insurance for their dump trucks will have higher premiums than a tech start-up that uses their sedan occasionally.
  • Coverage limits - How much coverage you want will impact your rates. The higher the liability limits and policy add-ons you want, the more you will pay annually for insurance.
  • The number of vehicles - Not only will the size of your company cars affect your rates, but so will the number you are trying to insure. The more vehicles you add to a policy, the higher your rates will be.
  • Usage - This one goes hand-in-hand with the industry you are in. What you plan to do with your vehicle(s) will directly affect your insurance premiums. If your job requires you to travel long distances with expensive products or equipment, your rates may reflect that. If you make the occasional delivery, your rates will increase.

How to Get the Cheapest Commercial Auto Insurance

Depending on your business, commercial auto insurance can get very pricey quickly. Luckily, there are some steps you can take to lower your annual insurance premiums.

Below are some ways to get a break on commercial vehicle insurance rates. Being a smart business owner means doing what’s best for your company and what’s best for your budget. It’s essential to learn about all your commercial auto coverage options.

Shop Around for Quotes

The best way to find the most appealing rates is to pull quotes from various companies and compare them. Look nationally and locally; you never know which insurance company suits you best.

You must also compare policies, not just the competitive prices. One rate may seem ideal, but it may need higher coverage limits. In the event of an accident, you want to be covered by your insurer. Being a diverse shopper is crucial when it comes to choosing insurance policies.

Ask about Discounts

Your insurance company may offer some discounts for you. Some companies offer a commercial driver’s license discount where new customers can save on their premiums and a business experience discount for business auto customers who have been established for a certain number of years.

Learn about the variety of discounts customers should be on the lookout for. Usually, insurance providers' websites list them, but if they do not, remember to ask your insurance agent about them. Insurance agents are experts in the field and will be of precious service when it comes to something like this.

Learn about possible discounts for the easiest ways to save money for commercial customers.

Clean Driving Records

You and your employees' driving records will come into question when establishing your annual premiums. This is not unlike personal auto insurance. Driving histories tell insurers how much of a risk you will be on the road.

Commercial vehicle insurance requires establishing your insurance risk and your employees safety on the road.

Safer drivers see lower insurance premiums, so hiring employees with good driving records would be wise if your business desperately relies on transporting goods.

Driver Education Courses

After you have hired your employees, learning about safer driving with a driver education course could be beneficial.

Regardless of their driving record, a driving education course can teach your workers how to be safe and intelligent drivers. Safe driving will then lead to fewer insurance claims in time.

More insurance claims mean your rates will stay the same. This is not an immediate rate decrease, like insurance policy discounts. However, ensuring safe drivers represent your company can still be worth it.

Bundling Business Insurance Coverages

You may have even more savings by bundling your insurance policies. Typically, business owners and landlords must carry multiple types of insurance policies.

When buying insurance for your business, you can bundle your policies under one company. In return for doing so, providers sometimes offer you a break on rates.

Bundling your commercial auto insurance with your business owner’s or landlord’s policy can make you eligible for this discount. This means you have both policies with the same insurance company.

Commercial Auto Insurance FAQ

What’s the Difference between Commercial Auto Insurance and Personal Car Insurance?

A standard or personal auto insurance policy will not cover any personal vehicles, damage, or injuries when used for work or business purposes. A commercial auto policy will cover everything that a standard car insurance policy and more with the insurance for the following:

  • Injuries caused to other drivers by you or one of your drivers
  • Damages caused to other cars and property by you or one of your drivers
  • Any emergency care claim expenses as a result of an accident
  • Physical Damages to your vehicles, regardless of fault
  • Legal expenses that ensue from an accident
  • Special GAP insurance for commercial vehicles that are leased or financed

To be insured against the damages above, you would need full commercial car insurance, which goes beyond just minimum liability policy that covers any damage or injuries you or a driver of yours cause to other drivers on the road.

Collision, comprehensive, and GAP insurance are all available to add on a commercial auto policy for maximum financial protection.

How Many Vehicles Can I Insure Under One Commercial Auto Insurance Policy?

In standard car insurance, policyholders can insure a maximum of five cars under one auto policy. This rule also stands for commercial auto insurance. Business owners with a fleet of up to five vehicles can have them all, along with the drivers, listed on one company policy.

The number of insured drivers is also limited to around five, while permissible driver privileges extend to all employees. When purchasing multiple policies for a fleet of trucks or vans with more than five vehicles, you can have multiple insurance providers and their policies for your different commercial vehicles.

How Can You Reduce The Rates of Your Commercial Auto Insurance?

The following are some helpful tips on lowering the annual cost of your commercial auto coverage. Much like regular auto insurance, it’s all about safe driving and the route with the lowest risk:

  • Have drivers with a proven track record of safe driving.
  • Bundle your commercial auto insurance with another type provided by the same company.
  • Keep business vehicles in a secure and safe location rather than an open lot.
  • Increase your policy’s deductible (the amount you pay before a claim is processed).
  • Steer clear of claims to earn a possible bonus.
  • Pay your commercial policy premium every year rather than monthly.
  • Maintain a good company credit score.

Get a Commercial Auto Insurance Quote Today

Ready to get a commercial auto insurance policy? Contact us today to get a free commercial auto insurance quote. Make sure you let us know your zip code, details of your business, and information on your vehicle. We can better understand the insurance coverage you need by providing this information.

Quotes are available either at one of our many locations or online in just a few clicks via our website and mobile app. We are also just one call away. Get your commercial vehicle insured today and get your certificate of insurance instantly.

Types of Commercial Vehicle Insurance Offered Covered

Commercial vehicle insurance products can cover any vehicle you or your employees use to conduct business.

Examples of such vehicles may include:

Popular States We Serve:

Commercial Auto Insurance in Illinois

Commercial Auto Insurance is Easy with Insurance Navy!

For an Affordable Commercial Auto Insurance quote, Call Insurance Navy™ today at 888-949-6289

* Commercial Auto may not be available in every state; please call an agent for more information.