Commercial auto insurance provides coverage for the vehicles owned or used by your business for work purposes. This insurance is crucial if you have vehicles used to deliver products or transport materials, but commercial auto insurance unfortunately isn’t always cheap.
There are many factors that go into the cost of your company’s commercial auto insurance policy, and the drivers you employ is one of them.
While the policy may be in your name, each driver allowed to drive the insured vehicles will be considered as part of your policy. So even if your driving record and credit score are squeaky clean, your employees’ may not be. Factors that influence your commercial car insurance rates include:
Amount of coverage
Unfortunately, rates for commercial auto insurance only seem to be rising. Companies with a longer history of losses or insurance claims are likely to pay a high amount more than other businesses for commercial auto insurance. For the insurance company, each of these factors add up to how likely your company is to file an insurance claim. If you have drivers on the policy with bad driving records, the insurance company is likely to charge more since the drivers may file a claim due to their history.
How Much Is Commercial Auto Insurance?
On average, a commercial auto insurance policy may cost anywhere between $900-$1,200 per vehicle. This also depends on how much coverage you have. Generally, liability coverage comes in millions. You could pay as little as $750 for $1 million in liability with $500 deductibles for comprehensive and collision coverage. Then again, you could pay up to $1,200 per vehicle for the same coverage. Heavier vehicles and vehicles that carry hazardous materials will cost more to insure because of the unique risk these vehicles pose to other people. States generally require businesses with these kinds of vehicles to carry a higher amount of liability insurance, as well.
To find the best rates for your commercial auto insurance policy, make sure to shop around, compare quotes and conduct extensive background checks on all potential drivers. Hire trustworthy drivers with approved backgrounds not only to save money on your insurance, but to ensure the protection of everyone on the road as well as your business’ reputation.