According to data from Insureon, commercial auto insurance costs approximately $1,762 per year on average.
Several key factors, such as the number of vehicles you need to insure and your location, affect the cost of commercial auto insurance.
Commercial auto insurance is probably required by law in your state if your business owns or rents vehicles. But you should know how much commercial auto insurance costs and which companies offer it before you buy it.
We looked at which insurance companies have some of the most affordable commercial auto insurance rates and how to choose the best commercial car insurance policy for your company’s needs.
Cost of business auto insurance on average
The average cost of commercial auto insurance is approximately $147 per month, but your premium is based on many things, such as the coverage you choose, the limits of that coverage, and the insurance company you choose. Your state may require you to have a certain minimum amount of coverage on your policy. For instance, New Jersey has the following set minimums for business auto insurance.
Factors that affect price
The premiums an insurer charges are based on a few key variables. Here are some of the things that commercial car insurance companies consider when giving you a quote.
Commercial auto insurance covers physical damage not sustained in an accident, while optional coverages such as collision and comprehensive insurance cover work vehicles.
When purchasing commercial car insurance, you need to determine your coverage limits for each coverage type. Most states require a minimum amount of liability and uninsured/underinsured motorist coverage, but higher coverage limits can be used to increase your premium.
The type of business vehicle (s) affects the commercial auto insurance rate, as well as the vehicle’s safety ratings, cost of repairs, and theft rate.
Choosing higher deductibles resulting in a lower premium, while selecting lower deductibles increases the premium. This is an out-of-pocket cost you’re responsible for paying if you have a claim.
Number of Vehicles
If your business has a fleet of work motor vehicles, your commercial auto insurance will cost more than if you only had one.
Employees Driving Reports
When applying for commercial auto insurance, the insurance company will review driving records of each individual listed as a driver. If the employee has a history of accidents, speeding tickets, or other violations, their premium may increase. Conversely, if all employees have clean driving records, their rate can lower.
The Best Companies for Commercial Auto Insurance
Commercial auto insurance is sold by most of the biggest insurance companies. But before buying business auto insurance, it’s a good idea to compare several companies. Listed below are some of the best companies that offer commercial auto insurance.
- The Hartford
- State Farm
- Allstate sells
How to get cheaper commercial auto insurance
Every business has a different cost for commercial auto insurance. But there are techniques to reduce costs on your insurance.
Pay your full premium.
If you pay your annual premium in full and upfront, many insurance companies will give you a discount.
The first quote you get for business auto insurance might not be the best. Compare quotes from different insurance companies to find the best rate.
Choose high deductibles
If your policy has a deductible, like collision insurance, and you choose a higher deductible, your monthly premium will probably go down.
Keep your driving record clear
If all of your workers have good driving records, you can usually get a lower rate on your business car insurance. To keep your rate low, tell your workers to drive safely and stay out of accidents.
How to Choose the Best Commercial Auto Insurance
All policies for commercial car insurance are a little bit different. Before you buy insurance, you should make sure you’re getting the right product for your business. Here are some things to think about when looking for business auto insurance.
- Compare multiple quotes
- Evaluate your coverage needs
- Review the fine print
Commercial Auto Insurance Cost FAQ’s
Do I Need Commercial Auto Insurance?
Most states have laws that require commercial car insurance with a minimum amount of coverage. But additional policies like towing insurance, collision insurance, or coverage for lost income may be beneficial.
How Much Is Commercial Auto Insurance for Uber?
The cost of commercial auto insurance for Uber depends on the insurance company, coverage type, and coverage limits. Some insurance companies offer rideshare endorsements or standalone rideshare insurance policies.
Does Commercial Insurance Cover Personal Use?
Commercial insurance policies cover the personal use of a business vehicle, but need to be tailored to the vehicle’s owner.
In this post, we discussed an overview of how much commercial auto insurance costs and some important points you should consider when making a plan for your business. I hope you enjoy it. Keep visiting for new updates related to business insurance.
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