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Commercial Auto Insurance Quote

Establishing your own business can come with its fair share of uphill battles. From taxes to marketing, you are already facing a lot of responsibilities. And everything only ends up being escalated when the industry you have chosen requires you to commute to conduct business. You may think that if you own the vehicle, your personal auto insurance will be enough, but that is not the case. In order to protect your company, you are going to need commercial vehicle insurance. The world of insurance can be a tricky one to navigate, but this post will serve as your guide, answering concerns about what types of vehicles you can get covered and how much it will cost your company.

What is Commercial Auto Insurance?

Commercial auto insurance provides coverage for vehicles used by a company to conduct business. The type of 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. Commercial vehicle insurance comes in handy to protect your business and its assets in the event of an accident. Without it, your company could find itself struggling to survive. It is crucial if you rely on travel to conduct business successfully.

Types of Vehicles Covered

Pretty much any vehicle you or your employees use to conduct business can be covered by commercial auto insurance. Examples of such vehicles may include:

Who Needs Commercial Vehicle Insurance?

Anyone who uses vehicles for business needs a commercial auto insurance policy. If you have any vehicle that is used for things like making deliveries, it needs to be protected by commercial auto insurance. This is especially the case for vehicles that are registered as a commercial car and carry a commercial tag. All business owners that have to hit the road in order to go about operating their company should be obtaining a commercial vehicle insurance policy. Not only will commercial vehicle insurance provide you financial coverage but operating a vehicle without any level of insurance is illegal in nearly every state. You have a responsibility as a driver to abide by state laws. If caught without car insurance after an accident, you are on the hook for the expenses that follow 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 car insurance when it comes to the damages that it covers. Standard policies include liability coverage with policy add-ons available to give you and your employees better protection. Outlined below are the different types of insurance available to cover your commercial vehicle.

Liability Insurance

Liability insurance covers any bodily injury and property damage that you cause in an accident. This is a pretty crucial part of any auto insurance policy and is the standard in states. You must carry a certain amount of it in order to be considered a legal driver in nearly every state. It is very important to carry. But also keep in mind that liability insurance will never pay for any of your injuries or personal property damage following an accident.

Collision Insurance

Collision coverage pays for damages to your vehicle that are a result of an accident with another car. This type of insurance is usually 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 Insurance

Comprehensive coverage offers protection for your vehicle after it sustains damage from a non-collision-related incident. This can include damage from events like vandalism, theft, fires, and extreme weather. To enact this type of coverage, your car must not have been in use when the damage occurred.

Other Types of Insurance

What has been outlined above is what a standard commercial auto insurance policy can offer you in terms of coverage. However, if you want to expand coverage, you have some options. Listed 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, also commonly referred to as MedPay, covers medical expenses you and any passenger accumulate following an accident. It pays out no matter who was found to be at fault.
  • Roadside Assistance - If you are having mechanical problems, roadside assistance will be there to help resolve a variety of issues with your commercial vehicle.
  • Rental Car Reimbursement - Following a collision, your vehicle may need to spend some time in a shop. But if you’re running a business that relies on your vehicles for income or sales, this can jeopardize the way you conduct your business. Rental car reimbursement will help you with the costs of renting a new vehicle while you wait for yours to get repaired.
  • Uninsured/Underinsured Motorist Coverage - Despite insurance being required in several states, there are a number of drivers out there who choose to get behind the wheel without any coverage. This type of insurance can be there to help with expenses when the other person’s liability coverage is lacking.

What Does Commercial Auto Insurance Not Cover?

Despite all it offers, commercial auto insurance policies are not without their limits. You should be aware of what is not covered by commercial car insurance before purchasing a policy. You may accidentally buy a type of insurance you really cannot use or try to enact it at the wrong time. Outlined below are some exclusions to commercial vehicle insurance.

  • Rental cars - Commercial auto coverage will not pay for damage to a vehicle that you don’t own. This includes rented and leased vehicles. Any vehicles must be owned before this type of insurance can offer assistance.
  • Ridesharing - Typically, commercial car insurance will not cover you when you are driving for a rideshare app like Uber or Lyft. Your best bet would be to purchase rideshare insurance, but you can always check with your state’s department of insurance to see what the laws are in your area.
  • Certain medical expenses - Any medical bills accumulated by your, your passenger, or your employee that are not related to the accident will not be covered by your insurance. For example, if you catch a viral illness after a collision, insurance will not cover your medical expenses pertaining to the illness.
  • Personal vehicles - If you or your employees are using their personal cars to conduct business (deliveries, appointments, etc.) and end up in an accident, your commercial car insurance will not cover it unless specified on the policy.

The instances outlined above maybe just be some of the exclusions on your commercial vehicle insurance policy. It is crucial that you review everything covered and not covered prior to signing on to a policy. You do not want to purchase a policy you end up not being able to use.

Customizing Your Commercial Car Insurance Policy

Like other types of insurance, commercial vehicle insurance is customizable. 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 policies offer coverage up to $1 million. Accidents can be very harmful, depending on the type of vehicles your business utilizes. You should also look into expanding your policy with specific coverage types like non-owners coverage. Non-owned coverage 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 coverage limits, you want to make sure that you will fully be covered in the event of a collision. Failure to do so will leave your business and assets vulnerable, as the financial costs associated with accidents can be overwhelming. If you need help establishing the best coverage for your company, your insurance agent can give you some advice and insight into what would be a wise fit. Agents are an incredibly valuable resource when navigating any kind of insurance.

How Much Does Commercial Auto Coverage Cost?

The cost of commercial car insurance depends on a number of factors, not too unlike personal auto insurance. For this reason, it is hard to give a definitive answer to how much you could be paying. But it may still be helpful to establish a baseline. On average, customers across the United States pay around $1,700 per year for commercial auto insurance. That’s about $140 per month. Where your premiums fall depends on a variety of things like the industry you are in and the car you are trying to insure.

What Determines Commercial Auto Insurance Premiums?

As mentioned above, there is a number of things considered when insurance providers go to establish your rates. Facts about you, your business, and your vehicle(s) are noted. Some aspects you can customize or control for better rates while others you cannot. The list below outlines what your insurance provider will look into when settling on your rates.

  • Type of vehicle - The make, model, and year of the vehicle(s) you are trying to insure will definitely be taken into consideration. The larger your vehicle is, the more it will cost to insure.
  • Driving records - Both you and your employee’s driving records will be taken into account when establishing rates. Insurers need to know how much of a risk a driver is before handing out coverage. If they find a number of accidents on your employee’s driving record, your premiums will go up.
  • Industry - Some industries come with higher risks than others. A construction company that has commercial car insurance for their dump trucks is going to have higher premiums than a tech start-up that uses their sedan occasionally.
  • Coverage limits - Naturally, how much coverage you want will impact your rates. The more coverage and policy add-ons you want, the more you will be paying annually for insurance.
  • The number of vehicles - Not only with the size of your vehicles 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 sort of 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 premiums may be adjusted accordingly.

Lower Your Commercial Vehicle Insurance Rates

Depending on your business, commercial car insurance can get very pricey, very fast. Luckily, there are some steps you can take to lower your annual insurance premiums. Outlined below are some ways you can get a break on rates. Being a smart business owner does not only mean doing what’s best for your company but also what’s best for your budget. It’s important to learn about all the ways you can save.

Shop Around

The best way to find the most appealing rates is to pull quotes from a variety of companies and compare them. Look both nationally and locally as you never know what provider will have the best fit for you. It is also important that you compare policies, not just the competitive prices. One price may seem ideal for you but have lackluster coverage. In the event of an accident, you actually want to be covered by your insurer. Being a diverse shopper is crucial when it comes to making a choice in regards to insurance policies.

Discounts

Depending on your insurance provider, there may be some discounts available to you. Some companies offer a commercial driver’s license discount where new customers can save on their premiums along with a business experience discount for business auto customers who have been established for a certain number of years. There’s a variety of discounts you should be on the lookout for. Usually, insurance providers' websites list them, but if they do not, don’t forget to ask your insurance agent about them. Insurance agents are experts in the field and will be of very valuable service when it comes to something like this. Discounts are some of the easiest ways to save money.

Clean Driving Records

Both 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. For commercial vehicle insurance, they need to establish not only your insurance risk but also your employees. Safer drivers see lower insurance premiums, so if your business desperately relies on transporting goods, it would be wise to hire employees with good driving records.

Driver Education Courses

After you have hired your employees, it could be beneficial to provide them with a driver education course. Regardless of their driving record, a driving education course can give your worker some knowledge on how to be safe and smart drivers. Safe driving will then, hopefully, lead to fewer claims in time. Fewer claims mean your rates will not increase. This is not an immediate decrease in rates, like insurance policy discounts, but it still can be worth it in order to assure your company is represented by safe drivers.

Bundling

You may have a chance for even more savings by bundling your insurance policies. Typically, business owners are required to carry multiple different types of insurance policies. When going to buy insurance for your business, you may be able to bundle your policies under one company. In return for doing so, providers sometimes offer you a break on rates. This could potentially be done by bundling your commercial auto insurance and your business owner’s policy. This simply means you have both policies with the same insurance company.

Commercial vs. Personal Auto Insurance

A common mistake people make when looking into commercial auto insurance is assuming their personal auto insurance will cover them. It is easy to see how they could make this assumption. On paper, commercial auto insurance and personal auto insurance are similar, save for a couple of policy add-ons. Where they differ is with coverage limits. Commercial auto insurance has considerably higher coverage limits than a personal policy. They also include coverage specific to your industry and offer seasonal coverage if your business only uses its vehicles a few times a year. Commercial vehicle insurance can be tailored to your business and its needs.

Get Commercial Auto Insurance Quotes 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. By providing us with all this, we can get a better idea of the coverage you need. 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(s) insured today and drive off worry-free tomorrow.


*This product may not be available in every state, please call an agent for more information.