Guide to Commercial Auto Insurance - USA Financial Center

If you’re a business owner or contractor, you need to invest in commercial auto insurance. It may be tempting to cut costs by getting by on your personal auto insurance, but in case of an accident, the special coverage that commercial auto insurance affords could mean the difference between the life and death of your business. Several factors come into play when determining whether or not commercial auto insurance is necessary, and our team can help you find a policy that fits both your needs and your budget.

What is Commercial Auto Insurance?

Let’s start by defining a commercial vehicle: It’s any vehicle used for business purposes. Commercial auto insurance—also referred to as commercial vehicle insurance, business car insurance, or business auto insurance—is the policy that protects any vehicle you use in the course of business.

What Vehicles are Covered Under Commercial Auto Insurance?

It can encompass a wide range, from your personal auto in which you deliver your produce to the local farmer’s market, to the trucks used for your construction company and beyond:

NOTE: Some insurance companies require a separate policy for semi-trucks and dump trucks.

What Does Commercial Auto Insurance Cover?

These are some of the coverages your auto insurance may include:

Auto liability: The most common type of commercial auto insurance is liability coverage. Most states in the US require liability auto insurance. Liability covers you personally when you are liable for damaging someone’s car or causing injury to a person.
Third party bodily injury & property damage: If your vehicle is involved in an accident, this part of the policy covers their medical expenses, legal expenses if sued, loss of income, and funeral expenses. It also covers the damage to their vehicle (repair or replacement).
Personal Injury Protection: Personal Injury Protection (PIP) is coverage which will pay for medical expenses and lost wages for you (the insured) and your passengers injured in an accident. It may also pay for funeral expenses. PIP pays whether or not you are at fault.
Comprehensive coverage: Comprehensive covers repairs to or replacement of your vehicle if it is damaged due to the weather, vandalism, or theft.
Collision coverage: Collision is another form of commercial auto insurance. Collision insurance will cover the damage that is done to the policyholder’s car as long as the policyholder is at fault. If another party wrecks your car, their liability pays for repairs.
Uninsured and underinsured motorist coverage: Uninsured and Underinsured coverage is required by most states and will cover you if the other party is liable and they do not have coverage. Why is it important? Recent statistics indicate that one in eight motorists does not have car insurance.
Gap Insurance: Gap Insurance will cover the difference of what the car is worth and what you owe as the lessee in the event of an accident that totals the vehicle. Gap Commercial Auto Insurance is very important for companies who provide leased autos for their employees to drive.

Who Needs Commercial Auto Insurance?

There are many instances where you should consider commercial auto insurance for business car purposes:

If you operate a business where your employees use personal vehicles on-the-job
You own a food truck or catering business
You use a vehicle to transport goods
You’re a contractor that carries tools in your vehicle

Without this business insurance coverage, you’re putting your business at risk—and could lose thousands of dollars. If you get in an accident, the costs pile up.

You may have to repair or replace your vehicle and anyone else involved in the accident. The cost of medical expenses for you, passengers, and other injured motorists can add up quickly. Add in the case of property damage, possible lawsuits, and even the death of someone injured—you’re looking at astronomical costs.

Other Policies to Consider

Here are some other policies an insurance company might offer under the business auto category:

Rideshare Insurance: If you work for Uber, Lyft, or another rideshare company you can obtain a special hybrid policy that covers personal liability, collision, and damage insurance.
Commercial Truck Insurance: It varies from insurance company to insurance company, but some do not cover semi-trucks under a normal commercial auto insurance policy. Truck insurance has a variety of different coverages you can add-on to protect your truck.
Tow Truck Insurance: This insurance policy is also specialized coverage for those in the towing industry.
Fleet insurance: If you own a car rental business you may qualify for fleet insurance—which is typically a better auto policy when you own multiple vehicles.
Inland Marine Insurance: A commercial auto policy covers equipment that is permanently attached to your vehicle. However, any tools, materials, or equipment not attached must be covered under a separate policy.
Hired and non-hired auto insurance: This auto policy covers vehicles you may rent for work purposes and sometimes personal autos when being used for business purposes.

How Much Does Commercial Auto Insurance Cost?

Because commercial auto insurance covers a wide type of vehicles, the cost of commercial auto insurance can vary greatly.

On average, the annual cost can be between $750 to $3,000 per vehicle. It depends on the type of vehicle, the industry you’re in, the policies you’re adding, deductibles, and much more.

What Do I Need to Obtain an Auto Insurance Quote?

The process of getting your commercial auto insurance quote—and buying the policy if the price is right—can be made much easier if you’re prepared.

Here’s some of what you might need to get your commercial vehicle insurance quote going:

Business name and description (LLC, Sole Proprietorship, etc.)
Filing requirements for your business (state, Interstate, ICC or FHWA)
Information about employee drivers
Commercial Auto classifications (private passenger, etc.)
Details about vehicles to be insured, including Vehicle Identification Numbers
Estimated range of vehicle’s mileage and range of operations

Get a Commercial Auto Insurance Quote

Let us help you find protection for your business and keep your mind at ease. At CommercialInsurance.Net, our mission is to help any medium or small business manage risk by helping you obtain cheap quotes.

Get a competitive insurance quote quickly and easily by calling us at 405-349-5434 or clicking here and completing the quote form on the page! One of our specialists will contact you soon to help you find the most affordable business insurance coverage.