If you own a business that operates with vehicles, you may need to purchase commercial car insurance. Additionally, if you use your personal car for business purposes other than commuting to work, running errands, or taking road trips, commercial coverage may be required. Let’s follow us to find out about Commercial car insurance in this post!
What Is Commercial Car Insurance?
While commercial auto insurance is comparable to personal auto insurance in many ways, it is expressly designed for vehicles used by or for a business. This can include vehicles purchased for your own business as well as personal vehicles used for business.
Commercial auto insurance can provide liability and collision coverage for corporate vehicles and drivers. If you are in an accident, the former pays for the other driver’s repairs and/or medical expenses. If you’re in a collision, the latter compensates for any damages or medical expenses you incur for yourself or your vehicle.
One advantage of obtaining commercial auto insurance for your company is that your premiums are usually tax deductible. You can deduct them as a business expense, thereby lowering your tax liability for the year. Personal car insurance rates are normally not tax deductible unless the vehicle is used for business purposes. Even so, you may not be able to deduct the entire premium paid.
How Commercial Car Insurance Works?
Commercial auto insurance is intended for situations that are unique to a company and its demands. If you have employees who drive company cars or trucks, for example, you may need non-owned vehicle coverage as part of your insurance. If you are self-employed and use your vehicle solely for business purposes, you will need a commercial policy that covers it.
Again, commercial auto insurance can cover both liability and collision damage. Your liability coverage limits may be larger than those of a standard personal insurance policy. That’s good news if you’re concerned about your company getting sued as a result of an accident involving yourself or one of your employees.
Your coverage may also cover objects inside commercial vehicles. Assume you own a contracting company and transport tools or supplies in your work vans. If the contents of the van are stolen, your business car insurance coverage may cover it.
The Best Commercial Car Insurance
Progressive
Progressive is our overall top pick for the finest commercial auto insurance. This expansive carrier—which has already been rated the top commercial truck insurer in America—offers coverage for a wide range of vehicle types, provides online estimates, and allows for an unlimited travel radius in most states. They also permit seasonal policy adjustments in order to save money on premiums during the off-season.
With a wide range of coverage options available across the country, it’s easy to see how Progressive climbed to the top of our list. This company offers commercial auto insurance for practically every business and vehicle configuration, as well as a bounty of savings and the opportunity to modify your policy at any time without penalty.
Progressive, which was founded in 1937, will be the leading commercial auto insurer in the United States in 2021, with a market share of more than 15%. They provide commercial coverage in all 50 states and cover a wide range of vehicles, including cars, light trucks, vans, SUVs, food trucks, dump trucks, and even tractor-trailers, to mention a few. In most states, they also provide an unlimited travel radius without raising premiums.
Nationwide
With benefits like new car replacement, loss of use protection, and commercial gap coverage, Nationwide commercial auto insurance is our top pick for the greatest value. Nationwide commercial auto insurance gets our recommendation for the greatest value in coverage, thanks to a wide selection of economical policy options, useful features, and deductibles as low as $0.
This company has been offering insurance coverage since 1926 and currently serves 48 states and the District of Columbia. Nationwide offers commercial automobile insurance on a wide range of business vehicles, including cars, cargo vans, work vans, box trucks, pickup trucks, and utility trucks; semi-trucks and tractor-trailers are not covered. Quotes are available online or over the phone, but you must deal with an agent to purchase a policy.
Farmers
Farmers may be worth considering if you need commercial auto insurance for a single corporate vehicle. This provider offers policies to a wide range of sectors, with coverage extending even to employees’ personal vehicles (when driving for business purposes). They offer liability, underinsured/uninsured motorists, and comprehensive commercial auto insurance coverage.
Farmers also provide coverage for specialized industries and losses. They can, for example, cover tools that were taken from a contractor’s van, as well as food spoilage or food-borne illness when insuring a food truck. This type of coverage is frequently available through separate BOP policies with some other carriers.
How Much Is Commercial Car Insurance?
The cost of commercial auto insurance can vary depending on a number of factors, including the quantity of coverage you have, the number of vehicles covered, and the type of vehicles your business uses. The median cost for commercial car insurance, assuming a $1 million policy maximum, is $142 per month or $1,704 per year, according to the business insurance consulting website Insureon.com.
However, this is a median figure, and your expenses may be greater or lower based on your industry’s risk profile, who is driving the cars, and what is covered by your policy. For example, if you run a high-risk firm, your premium expenses may rise as a result. On the other hand, if your business is low-risk, you may spend far less than the national average for commercial coverage.
When comparing commercial auto insurance quotes, make sure to ask the insurance company whether any discounts are available. For example, if you insure a fleet of ten vehicles, the insurance company may be ready to lower your premiums, thus saving your firm money.
