As a business owner, you may 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. If you use one or more vehicles for business purposes, commercial auto insurance protects you and your business from hardship in case of a an accident. Ultracar Insurance offers commercial auto insurance and SR22 insurance for many types of businesses. We also provide general liability insurance with coverage that can be tailored to the specific requirements of your business.
Why you need commercial auto insurance
If you use one or more owned vehicles for work purposes, have a logo on the vehicle(s) or have several drivers operating your vehicles, you need a commercial auto insurance policy. Plumbing, electrical and other service providers and contractors count on commercial auto insurance to protect them from loss of business if their vehicle(s) are damaged.
Another reason to investigate commercial auto insurance cost 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 enter into a contract to provide 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.
Commercial auto insurance coverage
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, and they vary accordingly. Commercial vehicle insurance policies can include much higher coverage options than individual auto insurance policies.
Factors that affect commercial auto insurance cost
- 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. That includes SR22 insurance filings if required. Contact UltraCar Insurance today for a no obligation commercial auto insurance consultation and quotes.
This article was last updated on November 4th, 2019 by UltraCar Insurance