Last Updated: August 4, 2022

How to Pick the Best
Commercial Auto Insurance

TLTR: Commercial auto insurance is a liability and damage protection coverage for vehicles owned by a company or organization. Read on and learn more about the best commercial auto insurance policies and where to get them. 

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.

  • 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

Keep scrolling to read the details.

Connect With The Best Insurance Agents Near You!

Find a local agent online to help you with your insurance needs.

In this blog

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. 

Best Commercial Auto Insurance

Liability coverage

The property damage you caused to another’s property, and any injuries to third parties due to the accident are covered by liability insurance. 

Collision coverage

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. 

Rental reimbursement

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. 

Comprehensive coverage

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. 

Connect With The Best Insurance Agents Near You!

Find a local agent online to help you with your insurance needs.

Get in touch with an insurance agent 

Local insurance agents understand your needs and the insurance market. Hire and consult experienced agents to make the entire process easier and clear out any confusion on your part. 

You can find top local agents on Agency Height. They will provide expert advice and recommendations on getting affordable and comprehensive auto insurance coverage.

Best 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:

Progressive

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

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.

The Hartford

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. 

In Conclusion

Commercial auto 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.  

If you require further guidance before you purchase policies, talk to an insurance expert. Get in touch with top insurance agents in your area. 

FAQs

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.

Connect With The Best Insurance Agents Near You!

Find a local agent online to help you with your insurance needs.

Related Articles

best auto insurance companies feature-image

Secrets Of The Best Auto Insurance Companies

commercial-truck-insurance-feature-image

3 Reasons Why You Need Commercial Truck Insurance Right Now

tow-truck-insurance-feature-image

Can Tow Truck Insurance Help Your Business Do Better?

Multiple Coverage Options at Your Fingertips

Choose from various options and select the policy that best suits your requirements.

+