Skip to content

How Much Is The Average Commercial Auto Insurance Cost? (2022 Rates)

You likely know that you need specific insurance coverage to protect your business as a business owner. Is commercial auto insurance one of those coverages? Commercial auto insurance covers any damages, injuries, or expenses resulting from an accident during work hours or during business endeavors. 

The average commercial auto insurance cost per month

The average cost per month of a commercial auto insurance policy of $1M coverage is around $2,100 per year, or $175 per month. Most small businesses pay around $120 to $250 per month for their commercial auto insurance policy.

Insurance isn’t a one-size-fits-all purchase. Many people think they can simply say, “I need liability insurance,” and receive precisely what they need. However, you should customize your coverage to fit your usage and more completely fit your needs.  As you customize your commercial auto insurance policy, the average cost per month may change.

Keep in mind that these are just the averages. Your rates will be different. Be sure to shop around with a few companies or work with a top broker like Simply Business, InsurePro, CoverWallet, Commercialinsurance.net, or Smart Financial to compare several quotes to choose the cheapest one for your company. If you prefer getting quotes online, Progressive, biBERK, THREE, and InsurePro are the companies offering commercial auto insurance quotes online. It shouldn’t take you more than 10 minutes to get quotes and buy a policy online from these companies.

Learn more at how much does commercial auto insurance cost

The factors affecting the cost of commercial auto insurance

Consumers can affect the costs of commercial auto insurance with their choices, such as deductibles and levels of coverage. Still, other factors also contribute to the cost of commercial auto insurance policies. Some of these variables are beyond the consumer’s control. Some of those factors include:

Location

The city, county, and state where you have your business directly affect your insurance premiums. If your area is heavily populated, or if your area is known for being a high accident area, your commercial auto policy will be more expensive. Your rates could be even higher if you travel across state lines to conduct business.

Kind of vehicle and how often you use it

Commercial vehicles, like private vehicles, vary in insurance cost based on the type of vehicle it is. For example, a policy for a passenger sedan used to travel between an office and a job site will cost less than a policy for a semi-truck. If the vehicle is used once a week, it will be less costly than one driven daily. The logic behind that is that the more often a vehicle is on the road, the more likely you will be involved in a traffic accident. 

Driving records and credit scores

Anyone who drives for the business must be included in the auto insurance policy. Therefore, the driving record for each individual will be considered when the policy rate is determined. If any of your drivers have tickets, accidents, or claims on their records, your premiums will be higher. 

The business owner’s credit score and the company’s credit score are also considered when writing insurance policies depending on the state. Lower credit scores are considered riskier, which will increase the cost of premiums. 

Type and amount of coverage

Commercial auto insurance encompasses more than one kind of insurance coverage. Like with your private insurance policy, you can opt to only have liability insurance, or you can combine that with comprehensive and collision coverage. In addition to those three basic coverages, there are industry-specific coverages you could add to your policy to customize it for your needs. 

The amount of coverage you need or want to purchase also factors into your premium costs. Higher limits help to lower your financial risk, but at what cost? More coverage typically means higher insurance premiums. 

Ways to save on your commercial auto insurance cost

Several factors affect the cost of your insurance premiums. The good news is that there are some ways that you can save on your premiums as well. 

  • Keep a clean driving record: everyone who drives for your company should maintain a clean driving record without accidents or tickets. 
  • Bundle coverages: many companies offer discounts when you bundle your commercial auto policy with other business policies or your private auto policy. 
  • Adjust deductibles: having a higher deductible can result in lower insurance premiums. The caveat here is that you will have to be prepared with the deductible should you have an accident. 
  • Pay annually: some companies will discount your policy if you pay in one lump payment annually. Monthly payments may sound great, but companies tend to add a convenience fee or processing fee to those that make your actual premium higher than if you pay annually. 
  • Employ telematics: safe driver devices like plug-ins or apps record information about your driving habits, and using them can lower your premium.
  • Get several quotes: get quotes from several companies or perhaps use a broker to get a quote. Ensure you are getting quotes for comparable coverages. 

Get commercial auto insurance quotes online

Similar to shopping personal auto insurance policies, getting several commercial auto insurance quotes online is a good way to start the shopping journey. Unlike personal auto insurance, not many companies offer commercial auto insurance quotes online. Here are the four companies offering commercial auto insurance quotes online that you should try: Progressive, biBERK, THREE, and InsurePro.

You can also work with a top commercial broker to compare several quotes in one place. A broker can get several quotes from their partners for you to compare in one place conveniently. Simply Business, InsurePro, Commercialinsurance.net, Smart Financial, or CoverWallet are some of these brokers that we recommend.

Learn more at the best commercial auto insurance quotes online

Best commercial auto insurance companies

You probably realize that it can be confusing trying to find the best commercial auto insurance companies for you since there are hundreds of providers. We have done the research and recommend the best providers of commercial auto insurance for your consideration:

  • Progressive: Best Overall
  • biBERK: Best for low-cost coverage
  • THREE: Best for simple yet comprehensive policy at a reasonable price
  • Simply Business: Best for comparing several quotes
  • The Hartford: Best for fleets
  • InsurePro: Best for flexible, pay-per-day coverage
  • Commercialinsurance.net: Best for knowledgeable agents
  • Smart Financial: Best for finding low-cost minimum liability

Who needs commercial auto insurance

Do you use your automobile in your business endeavors? If you use your car for anything related to your business, from transporting merchandise to traveling to meet clients, you need commercial auto insurance. Your private auto insurance usually is not adequate for your commercial auto needs.   

Typically, business travel is riskier than personal travel. That’s partly because you are on the road more, and it’s partly because you could be transporting more in your vehicle, which affects the car’s weight. The car’s weight affects your braking ability, and that is where the increased risk comes into play. 

Generally, commercial auto insurance will cost more than your private, personal auto insurance. The greater risk involved in business travel contributes to the increased cause. Also, commercial autos are typically required to carry more significant amounts of liability coverage than personal automobiles are required to carry. 

Learn more at Commercial vs. personal auto insurance: What do you need?

Final thoughts

Commercial auto insurance coverage is designed to protect you and your business in an accident involving a vehicle owned by your business or used for business transactions. Professionals in the insurance industry can help you determine exactly what coverages you need based on your business model and how you use your vehicles. If you are unsure whether you need commercial auto insurance, talk with your insurance agent or broker. 

Click to rate this post!
[Total: 0 Average: 0]
Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on pinterest
Pinterest

No comment yet, add your voice below!


Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: