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Buying personal cheap auto insurance can be daunting, and purchasing cheap commercial auto insurance isn’t any easier.
The trick is to realize you’re not insuring yourself, but your fleet of vehicles and your employees who are driving those vehicles. The same tools used to evaluate yourself when purchasing personal coverage should be used when purchasing for your company.
How much does commercial auto insurance cost? Is commercial vehicle insurance more expensive? What is the most affordable commercial auto insurance? We’ll answer these questions and more.
Ready to buy commercial auto insurance? To get free commercial coverage auto insurance quotes today, simply enter your ZIP code in the FREE box above to receive commercial auto insurance quotes online now.
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Commercial auto coverage is very similar to personal auto coverage. Many of the same liabilities covered by personal insurance are covered by commercial policies.
The major difference between the two types of coverage is eligibility requirements.
If the vehicle you’re looking to cover is driven in a commercial capacity, meaning you transport goods/people for a fee or you typically transport high-value items, you must buy commercial auto insurance coverage.
Is commercial auto insurance cheaper? Usually, commercial car insurance costs more than its personal counterpart.
This video from Travelers Insurance touches on commercial auto insurance coverage.
If you get commercial auto insurance, it will need to be on top of your personal auto insurance policy.
Is commercial car insurance expensive? How much is commercial car insurance? This table shows Progressive quotes for food delivery car insurance for drivers who need additional business insurance on top of their personal coverage.
|Types of Auto Insurance||Progressive Average Monthly Rates||Rate Increase From Progressive Personal Auto Insurance|
|Personal Insurance (Delivery)||Won't Cover||Won't Cover|
|Personal Insurance (No Delivery)||$105.83||n/a|
|Food Delivery (Business Auto Insurance Only)||$273.08||158.03%|
|Food Delivery (Business & Personal Auto Insurance)||$296.83||180.47%|
Understanding commercial auto insurance at its most basic level is the first step before purchasing a policy. Information can be found about various insurance policies and state regulations at your local DMV.
One tip for finding cheap business insurance is identifying what type of drivers you’ve employed. Similar to personal auto coverage, companies base their quotes and premiums on driver histories.
If you are looking to hire a new driver for your fleet, consider acquiring a driving record from your local DMV.
This request will give you information about accidents, tickets, and other types of driving-related issues your potential hire has in their history.
Recognizing how insurance companies develop rates for customers is important.
Not only do auto insurers look at your driving record, but they also take a closer look at credit history, commute length, and location.
Another consideration regarding your drivers is whether they are commercially licensed properly. Many insurance companies will offer discounts to drivers who have their Commercial Driver’s License (CDL).
When interviewing potential employees, ask questions regarding their licensing; this could save you money in the long run.
A second tip to consider is evaluating what kind of fleet of vehicles you’re looking to insure. As with personal auto coverage, the more expensive the vehicle, the higher the premium will be.
When looking to purchase commercial auto coverage, look at the vehicles you currently own. In addition, consider what types of vehicles will be purchased shortly after acquiring the insurance policy.
If you have a fleet of older trucks, your policy choice and deductible options may vary, thus varying your overall premium price.
Also, note that premiums will differ widely, depending on the insurance company. Consider the type and size of the company and how well they are equipped to cover your assets. Bigger companies may have higher premiums, but they also have more capital to cover their customers’ claims.
Finally, consider the amount of deductible you’re willing to pay. The higher the deductible, the lower your monthly premium will be.
Again, consider your fleet of vehicles and your drivers, evaluate how much your budget can afford to pay for your deductible, and then make your decision.
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Many companies will offer a variety of insurance options, depending on the type of vehicle. Business auto coverage, which covers small, compact cars and trucks that handle basic travel, is one example of auto-specific coverage.
Other examples are pickup truck insurance, tow truck insurance, commercial truck insurance, and dump truck insurance. All of the various coverage options will vary in pricing, especially for vehicles that handle dangerous travel conditions on a consistent basis.
If your fleet of vehicles consists of a wide range of types, purchasing similar commercial coverage for each vehicle could also save you money. Also, if you bundle multiple vehicles together, even if they’re different vehicle types, it will save you money.
A third tip for finding quality commercial auto insurance is evaluating the insurance company itself. Deciding on the right insurance company to cover your assets is vitally important. When discussing coverage options with an agent, remember that they are attempting to sell you coverage.
That means they may not give you full disclosure on the company itself. Doing background research on individual insurance companies is a smart move.
Government groups like the Better Business Bureau can provide quality information regarding companies, especially the smaller, locally owned agencies. You can find information on its website.
Investigate any discounts insurance companies offer. Discounts vary from company to company, and some can save you quite a bit of money.
From bundling policies together to driver’s license discounts, to being in business for a certain number of years, companies offer all kinds of discount incentives.
You can save a lot of money with discounts on your auto insurance. Take a look at the table below to see some commonly available auto insurance discounts at major insurers.
|Company||Claim Free||Good Student||Homeowner||Low Mileage||Multiple Vehicles|
You can save up to 35 percent with these auto insurance discounts. When shopping around, ask questions about possible discounts.
Some insurance companies offer other discounts related to how you pay for your policy. Sometimes you can receive a discount for paying online or by an electronic funds transfer.
Other times, you can receive a discount by paying for your policy in full when you first make your purchase.
Many insurance companies offer percentage-based discounts for customers that combine personal and commercial policies. Most of the time, these are referred to as package discounts or multi-policy discounts.
Another thing to consider is where you live. Depending on the state in which your company is located, insurance rates and premiums may vary. To find out further information and details regarding individual state insurance regulators, visit A.M. Best’s website.
There’s a wealth of information regarding state-based auto insurance policies and national policies at the American Insurance Association’s website. The AIA has a database of web links that will give you access to quality information.
Finally, the type of business you own will also impact which insurance companies will cover your vehicles. For many companies, rates and premiums are also based on the type of business you own.
If you happen to own a business that deals with high-risk driving situations, your quotes will be higher. Finding companies that offer quality discounts, in addition to quality prices for your individual business type, will save you money.
Having a basic understanding of how auto insurance works, how companies price policies, and how to evaluate your situation is the first step in finding affordable commercial auto insurance. Keep in mind that every company has different needs.
Although finding quality auto insurance can be a hassle, by doing your homework and being prepared and educated, you will save money.
Just remember to consider all of the various elements that go into the auto insurance companies’ decisions and understand your situation first.
It’s not that hard to find cheap commercial auto insurance. But what are the best commercial auto insurance companies for you?
If you need to buy commercial vehicle insurance, we can help. To find quality, affordable commercial auto insurance rates, enter your ZIP code in the box below.
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