Buying the right commercial auto insurance can be a tough task. Here’s how you can make that decision easily.
These are some crucial things you should keep in mind when picking the best commercial auto insurance policy for your business in 2023.
- Understand your coverage needs.
- Know the difference between personal and commercial auto insurance.
- Decide on a deductible.
- Use the latest market information when you buy commercial auto insurance online.
- Shop around and compare commercial auto insurance to look for discounts.
- Get in touch with an insurance agent.
Understand your coverage needs
First things first, how much and what type of coverage do you need?
Although auto insurance is mandatory in almost all states, most people only purchase the minimum coverage. Bad idea. Make sure to cover all the risks that you’re most vulnerable to.
As we dive deeper into this, let’s check the commercial auto insurance coverage types. According to your needs, you might want to include one or multiple of these coverages in your policy.
Commercial auto liability insurance
The property damage you caused to another’s property, and any injuries to third parties due to the accident are covered by liability insurance.
If your car flips over or is involved in an accident with another vehicle or object, collision coverage, often known as collision insurance, can assist cover the costs of the damage.
While your vehicle is being repaired due to a covered insurance claim, rental reimbursement coverage helps you cover mobility costs like a rental car or public transportation fares.
Your vehicle’s damage from theft, vandalism, water, fire, and other covered dangers is covered.
Personal injury protection
It protects against physical harm or death from an accident caused by you. In most circumstances, it also provides you with a legal defense.
Because covered claims are paid regardless of who was at fault in an accident, personal injury protection, or PIP, is frequently referred to as no-fault insurance.
Uninusured or underinsured motorist coverage
Uninsured motorist insurance pays for your injuries. In some cases, any property damage brought on by underinsured motorists is also incorporated when the at-fault driver doesn’t have enough insurance.
Medical payments coverage
If you are hurt in an automobile accident, medical payments coverage will cover your medical expenses. The medical costs of those people riding in your car are also compensated.
Know the difference between personal and commercial auto insurance
Contrary to popular belief, your personal auto coverage simply won’t cover your car while you’re using it for commercial purposes. Business auto insurance, in turn, also doesn’t cover you if you’re driving your company’s car for personal use.
Personal car insurance covers perils that occur while you’re using your vehicle for personal use—going to stores, taking long drives, commuting to and from work, etc. If you’re using your vehicle to take a work trip, you will need to purchase commercial coverage.
Decide on a deductible
Any insurance policy’s deductible is a crucial component. In the event of a covered loss, your insurance deductible is the sum you should pay before your policy pays the remaining costs.
You might increase your insurance premiums by choosing a low deductible. You can reduce your insurance costs by having a high deductible. You can accept the chance of having a large deductible on your commercial auto insurance coverage if you are unlikely to be involved in a significant collision.
Use the latest market information
When looking for commercial auto insurance, consider the most recent information. Examine the insurance providers you are considering working with and the present needs of your business. Try to find out what the insurer’s most current insurance rates are. Also, getting up-to-date information on the policy’s coverage is advised.
Shop around, look for discounts
Most insurance providers will offer special discounts to those who have installed dashcams, anti-theft devices, airbags, and other safety tech.
Check out the different discounts provided by insurers. Your premium can be significantly reduced if you are eligible for numerous reductions.
Get in touch with an insurance agent for a localized commercial auto insurance quote
When you are on the lookout for business auto insurance near you, the local insurance agents would be the ones that understand your needs and market. Just like you ask for directions to the locals nearby, ask for commercial auto insurance quotes from the local agents. Still not convinced? Well, check out some more reasons why finding the right insurance agent near you is vital:
Save a little more!
Experts can assist you in lowering the premium rates or finding a more affordable commercial auto insurance policy. There may be an offer from carriers you missed or a good driver or business discount you don’t know about. So, don’t miss out on saving more and increasing your profits.
Focus more on your business
Hire and consult experienced agents to make the entire process easier and clear out any confusion on your part. As a result, you can focus on what you are good at, which is running your commercial auto business and take unnecessary worries off your plate.
Consider your agent as an investment
As a business person, surely you can understand the value of a good investment. A commercial auto insurance agent is just that, a valuable investment. Whether by saving you some time, money, or hassle, they will benefit your company in the long run.
So, don’t waste any more time. You can search ‘commercial auto insurance agent near me’ online or find top local agents on Agency Height. They will provide expert advice and recommendations for affordable and comprehensive auto insurance coverage.
Best 3 Commercial Auto Insurance Companies
Once you know how to select the right policy, you will want to select the right insurance company. Let’s look at three of the most popular commercial car insurance companies as reported by Investopedia:
Investopedia rates Progressive as the best overall option for those seeking commercial auto policies. The monthly rate offered is $188 on average. The advantage of choosing Progressive is that it’s available in all states and offers numerous discounts. It also has coverage options for a wide range of vehicle types and great customer service.
State Farm is known for stellar customer service and for holding an A++ financial strength rating from AM Best. It also offers coverage in all 50 states. However, State Farm only houses limited policy options.
If you own five or more company-owned vehicles, The Hartford is your best friend. With special rates for fleet owners, it also holds an A+ rating from the Better Business Bureau and A+ financial strength rating from AM Best. It provides coverage in all 50 states.
The above three commercial auto insurance carriers are just a few among many that can provide a policy that has the best overall value. However, please note that depending on your location, the best carrier services can differ. So, make sure to add the name of your location for which you are searching, for example, the best commercial auto insurance in Texas or commercial auto insurance in Georgia. You can also narrow your online search by adding the name of your city or town.
Commercial vehicle insurance is the first step in shielding your business from unwanted expenses and losses. Every business is unique and is exposed to a lot of different risks. Insurance isn’t a one-size-fits-all solution. Especially if you are a small business and cannot afford to buy insurance from one of the largest commercial auto insurance companies, you need to deepen your search with the help of an expert. The right local insurance agent can help you find the best commercial auto insurance for a small business.
Lastly, we are here if you require further guidance before you purchase policies or find a commercial auto insurance broker. Get in touch with us to locate best insurance agents near you.
How much will my insurance go up if I’m involved in an accident with my commercial vehicle?
Not all instances of accidents can hike up your insurance rates. If you’re at fault, however, prepare to pay for higher premium rates going forward. Premium hikes vary by state and insurance providers. Bankrate reports that the amount of rate increase can range from $165 to $850.
On the other hand, insurance companies reward responsible drivers by offering discounts and lower premiums. Drive safe!
When does personal auto require commercial insurance?
If you’re using your personal vehicles for commercial use, you should get commercial car insurance. Delivering food, making rideshare trips, and taking business trips on your personal auto are some of the instances of using personal vehicles for commercial purposes. In case of accidents or losses during these times, personal insurance won’t cover you because it excludes business use.
Rideshare insurance can help you cover any gaps if you’re driving for Uber, Lyft, or other such companies.
Is commercial auto insurance required by law?
Yes, commercial vehicle insurance is mandatory in all states excluding New Hampshire and Virginia. Insurance requirements can vary by state or federal law. Meeting minimum requirements of insurance will save you ticket money or even jail time, but in the event of perils not covered by your policy, you will pay hefty amounts on your own. It’s always a good idea to talk to insurance agents and figure out what exactly you need.
Is commercial auto insurance cheaper than personal insurance?
No, commercial auto insurance is more expensive. However, personal insurance cannot cover you against losses and damage occurred to your vehicles during commercial use. Commercial coverage for larger trucks, tow trucks, delivery vans specifically require commercial policies.
June 7th, 2023 · 15 mins read
- Understand your coverage needs
- Know the difference between personal and commercial auto insurance
- Decide on a deductible
- Use the latest market information
- Shop around, look for discounts
- Get in touch with an insurance agent for a localized commercial auto insurance quote
- Best 3 Commercial Auto Insurance Companies
- In Conclusion
Find a Local Insurance Agent Near You
Get quotes from verified agents easily.
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