What is the average cost of commercial auto insurance? If your company needs cars, you’ll also need to budget for commercial auto insurance. You can be better prepared for this big regular investment by looking at the factors that affect the cost of commercial auto insurance. Before requesting rates from business auto insurers, gather information about typical mileage, the value of merchandise, employee driving history, and the type of vehicle you intend to purchase.
Types of Commercial Auto Coverage
Before learning about what is the average cost of commercial auto insurance we will learn about this topic first. Commercial auto insurance protects your company from damage and medical expenses following an auto crash (first party coverage). It also includes third party insurance, sometimes called liability, which, in the event someone insured under your commercial contract causes an accident, will pay for property damage & other parties’ related medical costs.
Regardless of who is responsible in a collision, collision insurance, a type of first-party insurance, will pay to have your commercial vehicle repaired. Comprehensive coverage, which is another primary first-party policy, covers damage to your fleet of vehicles or commercial vehicles caused by events other than accidents, such as theft, vandalism, or bad weather.
The following additional commercial auto insurance options:
- When an accident occurs when a covered person is operating a car that your business has leased or rented, non-owner or hired liability insurance guards against third-party property damage and medical expenses.
- Hired physical auto damages coverage, which pays for damage to a covered rented or hired vehicle in an accident regardless of fault.
- Medical payments insurance, which, regardless of fault, covers the costs of treating your drivers and passengers following an accident.
- Uninsured and underinsured motorist coverage will cover your medical bills and property damage if you are in an accident with one of these drivers.
- If one of your employees becomes stranded, roadside assistance coverage will cover towing, gas, tire changes, and other technical requirements.
What Is The Average Cost Of Commercial Auto Insurance?
What is the average cost of commercial auto insurance? The yearly policy expenses for different types of business vehicles are rough as follows:
- A typical automobile for business reasons costs: $600 and $2400.
- Limousine: $4000 to $10,000
- A delivery or cargo van: $3300 to $6200
- Taxi: $5000 to $10,000
- Semi-truck: $8000 to $12,500
- These Trusted Choice averages show the vast variety of prices for commercial auto insurance.
The Cost Guys compiled information on each state’s maximum and minimum levels of commercial auto insurance coverage and produced these typical annual ranges:
- From $574 to $1804 in California
- From $2565 to $3370 in Florida
- From $486 to $1268 for Maine
- From $5282 to $8723 in Michigan
- From $983 to $2271 in Minnesota
- From $641 to $2525 in Montana
- From $1136 to $2205 in Oregon
- $890 to $2594 in Texas
Factors Affecting Commercial Auto Insurance Cost
What is the average cost of commercial auto insurance? Learn about the many factors that affect how much you pay for auto insurance before requesting a quote:
Coverage: Currency Site According to The Cost Guys, your contract price will increase as you add more vehicles and drivers to your business’ fleet.
Type of Protection: For commercial auto insurance, you can choose from a variety of coverage and endorsement options, each of which has an impact on the total cost of the insurance.
Level of Protection: The lower the financial risk to your company, the greater the coverage limit. However, more coverage requires a higher monthly or annual rate.
- Claims History: You will pay less for this type of insurance if your company has previously filed few or no claims for commercial auto insurance.
- Value of your fleet: Insurance costs for one or two commercial vans are lower than for dozens of pickups, and as a result, your auto insurance premiums will naturally change. Property damage insurance is usually based on a percentage of the value of the fleet or vehicle.
- Vehicle Type: The size of your business vehicle also affects the premium. Compared with conventional delivery cars, large trucks pose a greater risk of damage.
- Driving distance: If your driver makes long-distance or interstate trips, you’ll pay more for commercial auto insurance, according to Fit Small Business.
- Parking: The location of your car park affects the cost of your commercial auto insurance. According to The Hartford, insurance costs will increase for businesses in areas with high rates of vandalism, auto theft and crime.
- Deductibles: You may be able to get a discount on your premiums if your company can afford a higher out-of-pocket deductible in the event of a claim.
- Cargo type: You will pay more for auto insurance if shipping dangerous products than if shipping non-hazardous items. The same is true when shipping expensive goods versus cheaper goods.
- Payment history: If your company has a bad credit history, your commercial auto insurance premiums may go up.
- Industry type: Businesses in high-risk industries pay more for auto insurance than businesses in low-risk industries.
- Number of Employees: Many auto insurance providers calculate their commercial rates based on the number of employees you have.
Conclusion
Above are the things you should note about car insurance and what is the average cost of commercial auto insurance. Take note of them and thoroughly research the auto insurance you are targeting and make sound decisions to protect your assets.
