Commercial Auto Insurance: Types, Rates And Suggestions

 Commercial Auto insurance is a special protection you take for your Business. Any Business should run securely. If you have a transport Business or any Business which requires two or four wheelers for transportation then this post is for you. Commercial auto license protects your vehicle’s from accident costs.

Exchange your vehicles in case of accidents, with suitable insurance. Secure your Business with insurance so that you can cut unnecessary risk.

Commercial auto insurance is not only for industrial Business vehicles like trucks but also for those transporting small tool from one place to another. Small or large all commercially used vehicles should have a commercial auto insurance. The average premium of such insurance is around $750-$1200.

Premium Structure for Commercial Auto Insurance

  • Commercial car – $750 to $1200
  • Semi truck – $1500 to $2000
  • Limousine – $4000 to $6000
  • Taxicab – $4000 to $6000

However commercial insurance prices may vary depending on one’s Business types and the type of vehicle. It will also depend on the condition of a vehicle when you apply for it. However, most leased cars or small Business cars see an average premium of $1200.

Factors Determining Cost Of Commercial Auto Insurance Vehicles

As mentioned above the rates of insurance varies widely from vehicle to vehicle and Business to Business. Here are some factors that influence the cost of commercial auto Insurance.

  • Type of vehicle – generally heavy trucks and industrial vehicle insurance cost more than normal Commercial cars.
  • Value of vehicle – Premiums are formulated based on the vehicle’s price, a percentage of it. This is why higher the value higher will be the premium.
  • Number of vehicles – It’s a simple maths that if you approach a company for a bulk deal in commercial auto insurance it will offer you the least price.
  • Business type – If the vehicle is an industrial one and has exposure to a large area and covers many states or countries then it means higher risk. So premium for such vehicles will be greater.
  • Coverage limit – you may need an endorsement to the policy that applies to your Business
  • Credit history – when you approach an insurance provider, the very first check will be credit square. Poor credit square means higher premium rates.

What all are covered in Commercial Auto Insurance?

  • Collision – The cost to repair the vehicle is provided by the insurance company.
  • Roadside expense – expenses needed for towing a vehicle especially on highways
  • Hired auto physical damage – damage to the vehicle but not owned by Business.
  • Medical insurance – Insurance company bares all the medically expenses of the people and driver who are injured. The claim is fulfilled even if the driver is at fault.
  • Bodily liability – all expenses from medical costs to funeral cost, and goods lost are all covered by the insurance company.

The Insurance company asks which type of Commercial Auto Insurance you want. The premium is calculated depending upon the type of insurance you are taking. Medical insurance and stuff depending upon your choice. You can choose all the options but the premium will surge. So identify your Business type and what your needs actually are and then buy.

Companies Selling Commercial Auto Insurance

Insurance is provided by a never of companies but you have to choose the best option for the best rates and offers. Also, you must look at the history of the company because many of them don’t replay when you actually need the money. So, we have listed five trusted companies which give Commercial Auto Insurance at affordable rates.

  1. Insurance321
  2. State Farm
  3. Nationwide
  4. Ap Indego
  5. Geico

All of these are mostly online insurance companies which provide them at most affordable rates and are genuine with a long and successful Business history.

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Trey Warsame

About the Author: Trey Warsame

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