When starting a small business, Arizona is a great place to be. With a low tax rate and a median age of little more than 38, the state is teeming with professionals on their way to work. Because most firms in Arizona are small, there are thousands of company owners doing business in the state every day.
Most of these enterprises own at least one car, which equates to thousands of commercial vehicles on the road every day. That also means a high possibility of accidents happening in the state. Therefore, as a business owner in Arizona, you need commercial automobile insurance to cover any possible mishaps.
This guide will show you some of the best companies to buy your commercial auto policy and some other information you need.
- The 6 best commercial auto insurance companies in Arizona
- What is commercial auto insurance?
- What does commercial auto insurance cover in Arizona?
- What are the requirements for commercial auto insurance in Arizona?
- What factors affect the commercial auto insurance cost in Arizona?
- How to find cheap commercial auto insurance in Arizona?
- Who needs commercial auto insurance in Arizona?
The 6 best commercial auto insurance companies in Arizona
- Progressive: Best Overall
- Simply Business: Best for generating quotes
- biBERK: Best for low-cost coverage
- Allstate: Best for experience
- State Farm: Best for safety programs
- Tivly: Best for small businesses
Progressive: Best Overall
Progressive is adaptable and accommodating in that they provide customizable coverage and several discounts with its insurance. The company has A+ ratings from A.M. and BBB for their financial strength and consumer satisfaction, respectively. Progressive, however, has a bad customer review rating on Trustpilot.
Pros
- Has the largest market share in the United States
- Provides coverage for nearly every vehicle type
- Offers numerous discounts
- Allows for seasonal policy changes
- The only carrier offers super fast quote online
Cons
- Progressive may not offer insurance to you if you have more than 20 vehicles.
Simply Business: Best for comparing several quotes
Simply Business is not an insurance company but rather a broker who links small business owners with business insurance through partner firms.
While Simply Business undertakes the first research, obtaining quotations matched to your business type from its network of insurance carriers, its services end there. Third party insurers handle everything from underwriting, claims, and customer service.
Simply Business is owned by Travelers, the United States’ second-largest writer of business insurance lines. Simply business has over 1,800 reviews on Trustpilot, and 71% of the reviews are 5-star ratings.
Pros
- It is owned by Travelers and benefits from their wealth of experience
- Helps business owners find suitable quotes on time
- They may help you save some cost
Cons
- Relatively young company
- Does not give any recommendations for US insurance companies.
biBERK: Best for low-cost coverage
biBerk provides affordable insurance to small businesses to help them save money. biBERK offers an easy-to-use enrollment process, but its experts can help you figure out policies and coverage. biBERK offers competitive rates for its commercial truck insurance policies. In fact, they claim that they save trucking businesses at least 20% on truck insurance. They also offer other business policies.
biBERK is one of a few companies offer trucking insurance quotes online. Within less than 10 minutes, you can get a quote on their website and if you are happy with the quote, you can buy the policy online as well.
The following is a sample quote from biBerk for a box truck in Chicago.
Pros
- You can get quotes and buy insurance online
- You can file claims online
- Most of their policies are low-cost
- They have a strong financial backing. It is a subsidiary of Berkshire Hathaways, ie. the same owner of Geico.
Cons
- The policy’s coverage limits may be lower than usual, but they can adjust the coverage limits that work best for you.
Allstate: Best for excellent customer satisfaction rating
Founded in 1913, Allstate is a major insurance company in the United States. Today, the company serves more than 16 million customers in the United States. The Better Business Bureau has given us an A+ rating. It earns the top position in the annual prestigious JD Power Customer Satisfaction Survey 2021.
Pros
- Long years of experience
- Excellent customer satisfaction rating
- Offer the full suite of small business insurance policies and other individual insurance policies such as life, house, and personal auto insurance, so you can get all insurance needs, both personal and business, from AllState
Cons
- Users think their agents are not competent
- They tend to charge more than your initial quote
State Farm: Best for safety programs
State Farm is one of the largest auto insurers in the United States. This company offers its coverage to over 80 million individuals and companies around the country. The corporation was formed in 1922 and is based in Bloomington, Illinois.
The company has an A++ rating from A.M Best and an A+ rating from The Better Business Bureau (BBB). On trust pilot, they have a 3.8 out of the total 5-star rating. Most customers give them a 5-star rating to show their superior service.
State Farm is also an active community leader, having aided in passing several seat belt laws and supporting numerous safety programs/organizations.
Pros
- High customer satisfaction ratings and good reviews
- High ratings for financial strength
- They provide ENOL and ridesharing coverage
Cons
- No online quotations are available; you must engage with an agent;
- Policy selections are limited.
Tivly: Best for small businesses
Tivly is an insurance broker established in the United States. They have their headquarters in Norman, Oklahoma. They were formed over 12 years ago to assist enterprises with less than $10 million in sales in locating reasonable yet dependable national-level insurance plans that adequately protect them from some of the most prevalent risks.
They take pleasure in giving swift yet realistic prices and prompt coverage. Offering a comprehensive choice of commercial auto plans from some of the industry’s biggest companies.
Pros
- Fast, reliable online quotes
- Small businesses can find quotes using their website
Cons
- They do not offer online commercial auto policies. They have to call you.
- They can only offer policies from their partners.
What is commercial auto insurance?
Commercial auto insurance provides liability and physical damage protection for vehicles used for business, such as automobiles and vans. Commercial cars require a different coverage since they are often more vulnerable to danger than personal automobiles.
That means businesses in Arizona that use cars to move tools, transport customers, or other business reasons may require commercial auto coverage.
What does commercial auto insurance cover in Arizona?
Commercial auto insurance policies in Arizona are often a combination of mandatory and optional coverage. Depending on your requirements and insurance evaluation, it may comprise any or all of the following:
Liability coverage
Most states in the US require that business owners have basic auto liability insurance. Some commercial liability coverages include two types of liability insurance. That is bodily injury liability and property damage liability coverage.
If your employee is driving a corporate car and gets into an accident, bodily injury coverage pays for the other driver’s medical expenditures. Property damage coverage contributes to the cost of the other driver’s automobile repairs.
Collisions coverage
After a covered accident, collision coverage pays to repair your work car or may pay to replace it if it is a total loss.
Comprehensive coverage
Comprehensive coverage pays for repairs to your business vehicle if it is damaged by something other than an accident (fire, vandalism, theft, or hail). For example, if a storm passes through and hail damages your corporate car, comprehensive coverage may assist in covering the cost of repairs.
Coverage for uninsured/underinsured motorists
Uninsured/underinsured motorist coverage pays for your employee’s medical costs or car repairs if they are involved in an accident caused by another driver who lacks sufficient liability insurance to cover the related expenses.
Coverage for rental cars
Rental car coverage assists in covering the expense of hiring a vehicle while your corporate automobile is being repaired following an accident.
Coverage for medical expenses
This coverage provides medical compensation for connected injuries to drivers, passengers, and others who are harmed in an accident.
What are the requirements for commercial auto insurance in Arizona?
If your business runs with vehicles in Arizona, the laws stipulate that you must have liability insurance for all your commercial cars. If your company has more than nine cards, you can express financial responsibility through self-insurance or a certificate of deposit.
However, self-insurance is usually a more challenging option since you must meet many stringent conditions. As a result, getting commercial car insurance might be the most practical option available.
The minimum amount of insurance required by the Arizonian Government for commercial car insurance is called the split limit of 25/50/15. The limit divides the financial amounts owed by your insurance for physical injury and property damage into three categories.
That means, for every car, you must have a policy that pays at least:
- $25,000 for each person hurt in an accident
- $50,000 for all individuals wounded in an accident
- $15,000 for any property damaged in an accident
Depending on the types of cars specified on your policy, you may be required to carry greater amounts. In addition to what is needed by Arizona state law, it is recommended practice to add more coverages as they are ideal for your firm.
How much does commercial auto insurance cost in Arizona?
The average cost of commercial auto insurance in Arizona for a policy with $1 Million maximum coverage is $150 per month or $1,800 per year. However, do not be alarmed by those figures. In Arizona, many business owners (about 44%) pay less than $1,400 every year for their commercial auto insurance. That means you might not pay as much as $1,800, depending on some factors discussed below.
Your quotes and rates will be different. Different companies will give you different quotes. Be sure to shop around with a few companies or work with a broker or agency like Simply Business or commercialinsurance.net to compare several quotes to find the cheapest one.
What factors affect the commercial Auto insurance cost in Arizona?
The following are factors that may increase or reduce the cost of your commercial auto insurance policy in Arizona.
Profession
Companies in industries that deal with more risk tend to pay more for commercial auto insurance than others. For example, a carpenter that carries heavy and dangerous tools and equipment to multiple job locations daily might pay more than an accountant who only uses his car for errands sometimes.
Vehicle
Your tariff is affected by the number of cars you have and how you use the cars. A carpet cleaning vehicle with a powerful vacuum system will likely command a greater price than a tiny delivery van with almost zero equipment.
Driving record
All drivers who have access to your company’s cars will be subjected to a motor vehicle report by your commercial auto insurance insurer. Drivers with accidents or infractions on their records will normally cause your insurance cost to rise. You should expect your insurance provider to consider your driving history during the last three years.
Location in Arizona
If you do business in a major city like Phoenix, your insurer might charge more for commercial car coverage than people who do business in smaller cities like Bisbee or Sedona. Note that charges are typically higher in areas with more claims or more expensive settlements than in other areas. Areas prone to weather-related catastrophes such as floods and wildfires will pay more as well.
Radius of travel
The distance you drive regularly might impact your commercial auto insurance rate. A car with a local route within Scottsdale’s city boundaries is seen as less dangerous than a vehicle with a regional route that traverses the whole Basin and Range Province. Also, businesses that move in and out of Arizona will have to pay more for their commercial auto insurance.
Coverage needs
Your premium is affected by the quantity of coverage you require. The more coverage you need, the more you will pay. For example, a Policyholder with the Arizona state minimum limit of 25/50/15 will pay less than a policyholder who needs a combined single limit of $1 million.
How to find cheap commercial auto insurance in Arizona?
To reduce the cost of your commercial auto insurance, we recommend these three ideas:
Check your drivers:
Your drivers play a large role in the cost of your premium. Therefore, ensure you employ good drivers with clean driving records as much as you can. Avoid drivers below 25 years or who have less than 2 years of driving experience. Also, drivers older than 60 years or who have more than 2 infractions every year are bad for your premiums.
Check the insurance company:
Insurance companies are hardly the same. Many companies have cheap policies while some others have expensive policies. It is your job to find a company that offers you the best price for your money. When you get the company, ensure to ask for discounts.
Check your business:
Finally, you need to make a few changes to your business. If your vehicles are too old, they may increase your premiums. So, if you can change them, consider changing them. Also, you can have safety training for your drivers to ensure that accidents are reduced. When your insurer sees that you commit to safety, they might offer you discounts.
Compare several quotes
The only way to make sure you are not over-paying your commercial auto insurance in Arizona is to shop around and compare several quotes to find the cheapest one before you make the find decision. Shopping around can be time consuming, but it is worth it. Working with a broker or agency like Simply Business or commercialinsurance.net is a good way to get and compare several quotes more easily since these agencies will be able to get quotes from the companies that they partner with for you at once.
Learn more at the cheapest commercial auto insurance companies.
Who needs commercial auto insurance in Arizona?
Commercial vehicle insurance, may protect you from enormous legal fees or other prohibitive expenditures, such as medical or property damage bills. Therefore, it should be on your priority list as a business owner in Arizona. That said, the following is a list of businesses that frequently need this policy in Arizona:
- Any company with employees who hire cars while traveling for business
- Any company with workers who use their automobiles for business
- Clubs and golf courses
- Freight and storage firms
- Restaurants that do home delivery services
- Uber and Lyft drivers
