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 cars a company needs coverage for and the more employees have access to these cars means a higher risk for insurance companies and increased 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.
Coverage types: The more endorsements a policy has, the more expensive the premiums will be.
Coverage limits: If a business owner increases coverage limits on a policy, the premiums will also be higher.
Deductibles: Higher deductibles will lower premiums but will also increase out-of-pocket expenses .
Cargo types: 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.
Credit history: Depending on the insurance provider, lower credit scores can mean higher insurance premiums.
Loss history: Companies with multiple insurance claims on their records are subject to higher premiums than companies that have no claims on their history at all.
Do you need more information about commercial auto insurance? Our agents and customer service representatives are here to help. Call us today at 1-888-949-6289 or visit your nearest Insurance Navy location. For your convenience, Insurance Navy is open from 8 a.m. to 9 p.m. CST, 7 days a week.
*Please review your own policy for details on your commercial auto coverage. Coverage options vary by policy and provider.