As a business owner, you might wonder if you need a commercial auto insurance policy and how much it will cost. Following are tips about commercial auto insurance cost that will save you money in the long run. When you own a business and use one of your vehicles for work purposes, a commercial auto insurance policy can protect you and your business against potential hardship in case of a motor vehicle accident. Ultracar Insurance offers commercial auto insurance options for many types of businesses, including SR22 commercial insurance. We also provide general liability insurance with coverage that can be tailored to the specific requirements of your business.
How do I know if I need commercial auto insurance?
If you are a business contractor such as a plumber, electrician or other service provider and use one ore more vehicles you own for work purposes, if you have a logo on the vehicle(s) or have several drivers that use the vehicle(s), you need a commercial auto policy. A commercial auto insurance policy will protect you and your business against damage to your business vehicle(s). Coverage can include comprehensive and collision, bodily injury, uninsured/under insured motorist bodily injury, medical payments, towing and vehicle rental. There are several classifications and categories that determine commercial auto insurance cost that vary accordingly. Commercial vehicle insurance policies can include much higher coverage options than individual auto insurance policies.
Another reason to carry commercial auto insurance is if you plan to do business with a major vendor. Many large companies require you to carry a specific amount of coverage if you contract with them to do a service or maintenance job. This is called a “vendor and contractor insurance requirement”, which can be written for as much as $1 million or more in coverage.
Some of the factors that affect commercial auto insurance cost are:
- Business type is the primary factor determining the cost. For example, if you’re an accountant, your risk of having an accident is less than if you’re a contractor or a truck driver.
- Your number of years in business.
- Your credit history.
- The type of vehicle/vehicles being insured; such as a truck, pickup truck, van, bus, emergency vehicle, limousine, passenger van, etc.
- The garaging zip code.
- The number of one-way miles driven daily, from a 50-mile radius to an unlimited number of miles.
- The number of vehicles to be insured.
- The coverage features you want to include in your policy.
- The number of drivers that will operate your vehicle/vehicles (as well as their driving records) plays an important role in the cost of your coverage.
- If you also carry general liability (business liability) insurance, your cost for commercial auto insurance can be lowered.
UltraCar Insurance will help you determine your commercial auto insurance cost with coverage options that meet the specific needs of your business, including SR22 insurance filings if required. Contact UltraCar Insurance today for a no obligation commercial auto insurance consultation and business vehicle insurance quotes.