How Much Does Commercial Auto Insurance Cost and Is It Worth It?

Whether you have a large fleet or only one car you use to conduct business, car insurance is a major expense you must consider as it can quickly start affecting your bottom line. Commercial car insurance is usually recommended even if you only use one vehicle and the sole driver. This is because you never know what might happen, and some liability issues need to be considered. Let’s look at how much commercial car insurance costs, the factors that can affect these costs, and if it’s the right decision for you.

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How Much Can I Expect to Pay?

How much you pay on insurance will depend on many factors. It will depend on the driver, for one, the type of vehicle, liability limits on the vehicle, and the insurer you pick. If we look at the average coverage, commercial auto insurance is between $900 and $1200. At this price, you can expect to get cover for $1 million in liability with $500 deductibles on collision and comprehensive coverage.

Note that things like the weight of the vehicle could affect these quotes. A vehicle that weighs more than 10,000lb without cargo will cost more to insure than a lighter one. Things like your radius of operation could also affect how much you pay.

Is Commercial Auto Insurance the Right Choice for You?

Well, it depends on your operation and your needs. The first thing you have to assess is how you’re going to be using the vehicle. If you’re going to use it to go to and from the office or make occasional trips to suppliers, then you might not need commercial insurance.

Commercial insurance is primarily for those whose business depends on their cars, such as businesses that rely on deliveries or a consultant who may have to visit multiple clients in a day. You also will need the best cheap auto insurance if you have multiple drivers using different vehicles.

It also depends on which type of vehicle you’re using. If you’re dealing with heavy trucks or tool materials, you will need insurance as these can cause more damage in accidents.

How Can I Save on Insurance Costs?

One of the best things you can do is find the right insurer. Certain providers are great if you’re trying to reduce your commercial auto insurance cost. They are used to doing business with operations of all sizes and find a great package for you. They also make it super easy for you to get your policy online, and you can get it for any vehicle in as little as 10 minutes.

Besides that, there are plenty of other things that you can do. One is to do your research on various vehicles and see which ones cost the most to insure. Safety ratings will make a big difference here, and quotes vary greatly depending on the brand or model. So, we would suggest you look at more than one vehicle and pay special attention to the year as well.

Another thing you could do to reduce your premiums instantly is to increase your deductibles. This is the amount of money you’ll have to pay out of pocket if you are ever involved in an incident. Try to make your vehicle as safe as possible. Ask the insurer if they offer discounts if you add items like a rearview camera or security features like an engine immobilizer.

The less your employees get involved in accidents, and the lower your costs will be, making sure that you use a fleet tracker if possible. This will allow you to check how they’re handling the vehicle. You should also offer some additional training so they can become better.

Defensive driving classes, for instance, will be a great way for them to learn crucial skills that could help them if they’re in a sticky situation. Once you’re with the same insurer for a while and notice your good habits, they will be open to lowering your premiums and deductibles.

Now that you know a bit more about commercial insurance, we suggest you start looking at your options if you feel it’s the right choice for you. Make sure to go with an insurer with many choices ready to work with you and find the best package for your needs and budget.

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