Commercial Auto Insurance Cost Analysis

A Overview of Commercial Auto Insurance Cost

When you own a fleet of vehicles, it’s important to know the difference between commercial auto insurance and personal car coverage.  

Commercial auto policies provide valuable financial protection for  both employees driving company-owned cars or trucks in business operations. A personal automobile insurance policy does not typically cover vehicles used in business operations. So, you need a Commerical auto policy to cover vehicles used for business purposes.  

The commercial auto policy offers liability coverage for bodily injury, third-party property damage and physical damage coverage for vehicles you own, lease, hire or use in your business. 

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What Is the Average Cost of Commercial Auto Insurance? 

Commercial auto insurance costs depend on several factors- the number of vehicles, their value, and their business use. Insurance companies also consider the company’s driving record, claims history, and credit score. 

In general, the more vehicles a company has, the higher the insurance costs. However, newer and more expensive vehicles also result in higher premiums. Companies that use their vehicles for business  typically pay more for commercial auto insurance than those using them for personal purposes.  

Average Cost of Insurance as per vehicle type 

Vehilce Type Average Cost per annum
Commercial Car Insurance  $1,200 to $2,400 
Commercial Bus Insurance  $35,000 
Commercial Tractor Trailer Insurance  $2,500+ 
Commercial Truck Insurance  $800 to $2,000 
Commercial Taxi Insurance  $5,000 to $10,000  

The Hartford surveyed businesses in eight industries and reported a median premium cost of 55 dollars per month or just over 662 dollars annually. Therefore, different companies will have different rates for their commercial auto insurance policies. 

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How is Auto Insurance Rate Calculated? 

Auto insurance rate is calculated considering the following: 

  • Total cost to replace your vehicle if it is totaled 
  • The maximum amount your insurer will pay for bodily injury or property damage caused by accident involving your vehicle 
  • Your deductible, which is the amount you have to pay before your insurance policy kicks in 
  • Your state’s minimum liability requirements, which is the amount of insurance you are required to have by law 

Therefore, to find the cost of commercial auto insurance for your business, you must also consider the factors above. The best way to determine how much your auto insurance will cost is to get a quote from an insurance company. You can compare the quotes with different companies to find the best rate for your business. 

Factors Affecting Commercial Auto Insurance Rates? 

Commercial auto insurance policies can vary widely in terms of coverage and cost. However, there are a few factors that generally impact the price of your policy. 

Size of Business 

The type of business you run is one of the most significant factors in determining your commercial auto insurance rates. For example, if you have a fleet of trucks that make deliveries, you will be seen as a higher risk than a business that only uses vehicles for local errands.  

Number of Vehicles 

The number of vehicles you need to insure also plays a role in setting your rates. Insuring a larger number of vehicles usually costs more than insuring just one or two. 


The location of your business can impact your commercial auto insurance rates. If you are located in an area with a high crime rate or traffic accidents, you will probably pay more for insurance than a small town or rural area business. 

Number of Claims 

If you have had to file a lot of claims in the past, this will also impact your commercial auto insurance rates. Insurance companies see businesses making a lot of claims as higher-risk, and they will charge accordingly. 

Number of Miles Covered 

The number of miles your vehicle covers on average also play a role in setting your rates. Businesses that require their vehicles to cover a lot of ground will be seen as higher-risk, and pay accordingly. 

Safety Features 

If your vehicles are equipped with safety features like airbags and anti-lock brakes, you usually get a discount on your insurance rates. 

Fuel Prices 

The fuel cost is always fluctuating, and this can impact commercial auto insurance rates. When fuel prices are low, businesses that use vehicles extensively see an increase in their rates. 

Vehicle Usage 

Finally, your vehicle use also affects your commercial auto insurance rates. You may be eligible for commercial auto insurance discounts if you only use your vehicles for business purposes. Many insurers offer lower rates for business owners who can prove that their cars are used exclusively for business purposes. 

commercial auto insurance cost analysis

How to Save on Commercial Auto Insurance 

Commercial auto insurance can be expensive, but there are ways to save on your premium. Reviewing your coverage regularly, comparing rates from different insurers, and considering a higher deductible are all good ways to save on commercial auto insurance.  

Here are some more ways to save on your commercial auto insurance. 

Bundle Commercial Auto Policy 

If you own multiple vehicles, you may be able to get a discount by bundling your policies together. Many insurers offer discounts to the customers with more than one policy. 

Increase Your Deductible 

If you’re willing to pay more out of pocket in the event of an accident, you can save on your commercial auto insurance by increasing your deductible. Make sure you’re comfortable with the increased risk before making this decision. 

Secure Your Vehicle 

One of the simplest ways to lower your auto insurance rates is to take steps to secure your vehicle. This can include installing anti-theft devices, parking in a garage or other secure location, and keeping your vehicle in good condition.

Use of Electric Fund Transfer Medium 

One way to save on commercial auto insurance is to use an electronic fund transfer (EFT) medium when making payments. This can help you avoid late payment fees and other penalties that can increase your rates. 

Ask About Discounts 

Many insurers offer discounts for having a clean driving record or installing safety devices in your vehicles. Be sure to ask about any discounts that may be available to you. 

Consider Paying Annually 

Paying your insurance premium in a lump sum is another way to save on your auto insurance policy. This can often be cheaper than monthly payments, and can help you avoid finance charges. 

Hire Employees with Good Driving Records 

One way to reduce your commercial auto insurance rates is to hire employees who have good driving records. This will help lower your overall risk, and increase savings for your business. 

These are just a few ways to save on commercial auto insurance. By taking these steps, you can help reduce the costs while getting the coverage you need. Commercial auto insurance can be expensive, but it doesn’t have to be if you take time to shop around and compare rates. With a little effort, you can find a policy that’s both affordable and comprehensive. 

Commercial Auto Insurance Discounts 

Despite the number of vehicles you own, you can always use commercial auto discounts to land affordable insurance policy and protect your vehicles.  

Commercial auto discounts are quite tricky. But, once you get the hang of it, it can be easy to save hundreds or even thousands of dollars on your commercial auto insurance policy. 

 Most commercial insurers offer discounts for a variety of reasons. It includes a good driving history, experience of your drivers, and the type of business your commercial vehicles are used for.  

You may be eligible for a multi-vehicle discount if you have more than one commercial vehicle. You can also save by bundling commercial auto insurance with other types of coverage, such as property insurance or general liability insurance.  

In addition, many commercial insurers offer discounts for taking steps to improve safety, such as installing anti-theft devices or participating in driver training programs.  

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