Commercial Auto Insurance Companies
What is the average commercial auto insurance rate? You may be surprised when you find out! The average commercial auto insurance rate for larger trucks and cars can be double, even triple what you may be paying for small personal vehicles. For some reason, many business owners don’t realize that they are not getting the best possible rates for their commercial auto insurance, simply because they are shopping for auto insurance for businesses rather than for personal use. Commercial auto insurance is different than personal insurance in a number of ways, and understanding how commercial auto insurance works can save you money. Here are the basics:
Commercial auto insurance companies expect you to cover all your business vehicles. Even if multiple accidents are suffered from separate occurrences, for most commercial auto insurance companies the coverage limit applies to all damages on the policy. However, if a business owner needs extra limits, they can buy separate excess coverage or umbrella coverage, which is separate from their commercial auto insurance policy, and will kick into action when the business owner’s policy limit of liability for personal property and bodily injury is reached. When shopping for commercial coverage, be sure to add these extra policies to your existing policy for the maximum protection.
Each type of business vehicle requires a different amount of coverage. There are personal vehicles that are more “cost-effective” when it comes to commercial auto insurance companies. These types of vehicles are usually the larger ones such as sedans, SUVs, and minivans. These commercial auto insurance companies tend to be less concerned with theft or damage caused to the vehicle, because they consider them more like vehicles used for work, and therefore the theft of one of these would be less likely than theft or damage of one of the business’s cars. When you are calculating the cost of coverage for any vehicle that will be driven on company property, it is important to take into account the weight of the vehicle and its height from the ground.
The weight of the vehicle is determined by the manufacturer, as is the height of the vehicle from the ground. If you don’t know how tall your vehicle is or how heavy it is, there are several web sites where you can find this information. Some will also provide a range in size, so if you are unsure, just know that most commercial auto insurance companies’ weight requirements will be different for most business vehicles. You may also want to get a free auto insurance comparison quote before you begin your search for coverage. Most of the big insurers do offer a free auto insurance comparison quote service on some of their web sites. This can be a great way to see what each company’s policy offers and help you decide which one is best for your business.
There are some limitations on the liability that can be included with many commercial auto insurance policies. For instance, business vehicles that carry inventory might not be covered unless the inventory is worth more than $600. Also, most policies will exclude most farm vehicles. Although the majority of policies will exclude business vehicles, there will be a few that will cover them under certain circumstances. Again, a good web site can provide an explanation of these circumstances and the exclusion criteria that might apply to your particular situation.
As far as personal vehicles are concerned, a good commercial auto insurance provider will make this provision even for a policy purchased for a single individual. For instance, most auto insurance coverage providers will offer coverage for a single automobile to an extent. However, most will also include a minimum amount of coverage for each individual employee. Again, an excellent web site can explain the differences between these various types of coverage and which ones apply to your company.
As you look through a variety of policies, you should make sure that your coverage provides for the minimum liability limits. Liability limits are typically expressed as a percentage of the vehicle’s gross car weight or its curb weight. Again, an excellent comparison tool can help you determine the best possible percentage level of coverage that you need. Another issue that most people fail to consider is whether they need uninsured or underinsured motorists coverage. This part of the coverage usually only applies to new or young drivers who have been involved in an accident that was not their fault. An excellent commercial auto insurance provider will make this provision of the agreement very clear.
Finally, in order to get the best rates on commercial auto insurance, you should obtain a copy of your collision history report from each of your commercial vehicles. The report will show any accidents that were reported during the time that you have owned those vehicles, and it will also show any claims that have been filed. As a result, it is very important that you review this report at least once a year in order to ensure that all of the coverage claims are correct. A web site that offers vehicle coverage comparisons can also provide you with rates from several different insurance carriers very easily and quickly.