Commercial auto insurance is insurance designed to cover one or more vehicles used for business purposes, such as a car, van or truck. Commercial auto insurance is generally required when you use a vehicle to transport people or goods for a fee, or when a vehicle is driven by one or more employees.
Although most of us think of commercial vehicles as pickup trucks and big rigs, commercial auto insurance can cover any type of vehicle that is owned or leased by a business, including cars, minivans and SUVs. In fact, you can purchase commercial auto insurance for almost any type of vehicle you use in your firm’s operations, including:
Vehicles outfitted with work equipment
Limousines and taxicabs
Personal vehicles used for transporting passengers for Uber or Lyft
Flatbeds
Trucks, such as dump trucks, refrigerator trucks, catering trucks, box trucks and the like
Rented or leased vehicles
Generally, commercial auto insurance provides the same coverages as individual insurance with higher limits. Add-ons are available, however, that offer coverage for:
As with personal insurance, you can also purchase optional coverages, such as:
Commercial auto insurance rates vary considerably, depending on variables such as the number of employees you have, the size of your fleet and where in the United States you are. Ballpark estimates run anywhere from $1,200 to $2,400 for commercial car insurance, $5,000 to $10,000 for taxi or livery insurance and $2,500-plus for tractor-trailers nationwide.
Other factors that influence the cost of your commercial auto insurance include your drivers’ histories, the size and value of the vehicles you own and where and how far you and your employees drive.
When your are hiring employees to drive a company vehicle, check their driving record with the DMV before bringing them on board. Drivers with a good driving record may lower both your insurance rates and your risks. Additionally, some insurers offer discounted rates to companies who hire drivers with a commercial driver’s license (CDL).
As with personal auto insurance, the cost of your commercial auto insurance will depend on the value of the vehicles you insure. If you own three older model pickup trucks, for example, the cost to insure them will be considerably less than for a fleet of 10 late-model limousines. If you don’t own the vehicles outright, the lienholder will require that you have collision coverage on the vehicles as well, increasing the cost.
As with personal auto insurance, commercial auto insurance rates are tied to the number of miles the vehicle(s) are driver each year. More mileage typically equals higher rates. Vehicles that transport hazardous materials or those that carry passengers typically cost more to insure as well.
If your business is involved in transporting goods or passengers across state lines, or you transport certain types of hazardous materials to a foreign country, intrastate (within a state) or interstate (across state lines) additional insurance requirements will apply. These are mandated by the Federal Motor Carrier Safety Administration, and include:
At Carmoon Group, we offer all types of affordable commercial liability insurance, including coverage for your business automobiles or trucks. Our agents are here every weekday from 9 a.m. to 6 p.m., so why not call our office at 516-292-3780 to schedule an appointment today? Too busy to call? Simply request a free consultation online and we’ll get back to you within one business day.