There are 630,000 small businesses which employ 1.1M employees in Colorado. Many small business owners are not aware that they can’t use personal auto insurance coverage for a business vehicle. If you get caught using your personal vehicle for business purposes, your insurance company could deny a claim or drop you altogether. If you let your employees’ run errands for you, they need to be insured under a commercial policy as well. Commercial auto insurance is generally more expensive than personal auto insurance. However, the good news is that many insurance companies offer commercial auto insurance in Colorado. Here are our recommendations for the 5 best providers.
- The 5 best commercial auto insurance companies in Colorado
- What is Colorado commercial auto insurance?
- What does commercial auto insurance cover in Colorado?
- Commercial auto insurance coverage requirements in Colorado
- How much does commercial auto insurance cost in Colorado?
- How to find cheap commercial auto insurance in Colorado?
- Who needs commercial auto insurance in Colorado?
- Should delivery drivers carry commercial auto insurance in Colorado?
The 5 best commercial auto insurance companies in Colorado
We research several commercial auto insurance providers in Colorado and here are our recommendations of the top 5 providers:
- Simply Business: Best for finding the cheapest commercial auto coverage
- Progressive: Best for a fast online quote and several discounts
- biBERK: Best for low-cost commercial auto coverage
- Nationwide: Best for businesses in certain industries looking for enhanced coverage
- Smart Financial: Best brokerage firm if you prefer working with an experienced agent
Simply Business: Best for finding the cheapest commercial auto coverage
Simply Business is not an insurance company. They are a digital broker and working with several leading business insurance companies such as Liberty Mutual, Hiscox, Nationwide, and the Hartford. The benefit of working with a digital broker is that after you fill out their quote application, they are able to pull quotes from these companies for you to compare several quotes and select the cheapest one for you. If you want to be able to compare several quotes to find the cheapest one, you might want to start with them.
Pulling good commercial auto insurance quotes from several providers might be more complicated than you’d think because there are several nuances on how one uses his vehicle for business purposes. You may not have several quotes to compare online. However, they will still make the quotes available to you on the phone. So you may want to give them a call to discuss your quote options and select the best and the cheapest one for your situation.
Simply Business also offers many other great digital features such as downloading the certificate online, renewing a policy, or filing a claim, and many more.
They earn an excellent consumer rating on trustpilot, 4.2 out of 5, well above the average rating of other carriers.
Progressive: Best for a fast online quote and several discounts
Progressive is the largest provider of commercial auto insurance in the U.S. While most of their business insurance is provided through a third party, they do offer commercial auto insurance directly to customers, similar to their personal auto insurance business. The biggest advantage of working with Progressive is that their online quote is super fast and simple. Within 5-10 minutes, you will have your quote in detail. You can also buy a commercial auto insurance policy online with Progressive, which is quite convenient.
According to Progressive, the average monthly cost of commercial auto insurance in 2020 was $187, but it depends on how many vehicles you insure, what type of business you do, what kind of vehicles you use, your deductibles, your driving history, and even your location.
It is almost impossible to guess how much your commercial auto insurance costs since the quote is unique to you, the type of vehicle, and how you use the vehicle for business. Make sure to get quotes from several companies to compare and select the best one for you.
The discounts offered by the firm include:
- Paid-in-full discount. You earn money off if you pay your annual premium in full and on time.
- Multi-policy discount. You’ll save money if you have other qualifying policies with Auto-Owners Insurance.
- Life multi-policy discount. You’ll save if you have a qualifying life insurance policy with the firm.
- Group discount. You qualify for the discount when your business is affiliated with certain organizations, including chambers of commerce, credit unions and trade associations.
- Fleet monitoring discount. If you agree to have telematics devices installed and actively monitoring the vehicles in your fleet, you become eligible for this discount if your employees consistently demonstrate safe driving habits.
- Farm use seasonal discount. You may qualify for this if you insure certain vehicles used for farming.
- Deductible-related cost reduction. If you choose a higher deductible, it may lower your policy premium.
- Favorable loss history. You may qualify for a lower premium if you haven’t made many claims on your commercial auto policy.
biBERK: Best for low-cost commercial auto coverage
biBERK is a direct-to-customer insurance carrier specializing in serving small businesses. They offer an excellent digital experience. You can get quotes and buy a policy online in less than 10 minutes. The whole experience is such a delight: simple, straightforward, and fast.
On top of that, biBERK offers very competitive rates. They claim that they can help their customers save at least 20% on premiums.
Their operation is focused on delivering the ultimate online insurance experience. Because of this, you’re able to purchase a policy, file a claim or get an auto insurance card, any time, 365 days a year. Even though biBERK is an online insurer, you can get expert help over the phone when you need it. The firm is also known for being able to make most claims decisions within 48 hours.
Despite the fact that biBERK is a relatively new and innovative company, you can rest assured knowing it has an excellent rating from A.M. because they are a subsidiary of Berkshire Hathaway, the parent company of Geico.
Nationwide: Best for businesses in certain industries looking for enhanced coverage
Nationwide is a popular brand name in the personal auto insurance industry. But you might not aware that they are also one of the top 10 providers of commercial auto insurance in the US.
Nationwide offers business-related coverage for businesses in certain industries, including retail stores, professional offices, contractors, auto repair services, wholesalers and distributors, food and beverage businesses, medical clinics and self storage facilities.
While Nationwide doesn’t offer coverage for all industries, it does have an extraordinary array of options and add-ons to its commercial auto coverage including:
- Roadside assistance. Provides support when you or a covered employee is locked out of a car, has a dead battery or flat tire.
- New vehicle replacement cost coverage. Replaces a new vehicle when it is declared a total loss with a new or comparable one.
- Hired auto physical damage with loss of use coverage. Covers comprehensive and collision damage for vehicles leased or rented by you or your employees for business purposes, including all contractual obligations to the rental company.
- Auto loan or lease coverage. Covers the difference between the total amount due on a loan or lease and the actual cash value of the vehicle, if it’s a total loss because of an accident.
- Expanded towing. Provides towing benefits beyond what’s covered by a standard business auto policy, including things like jump starts and minor roadside repairs.
- Rental reimbursement. Pays for a rental vehicle up to the limits of your policy so you and your employees have access to transportation after an accident.
- Medical payments or personal injury protection coverage. Pays for medical expenses if regular health care insurance doesn’t cover the costs.
Beyond offering all these specialized coverages, Nationwide is known for its reasonable rates and high level of service. They always rank in the top 10 of the prestigious JD Power Customer Satisfaction Survey of auto insurance and commercial insurance providers.
One of the downsides of working with Nationwide is that you have to work with one of their agents. They do not offer quotes nor buy a policy online. However, if you are new to buying commercial auto insurance or your business requires special coverages, you may want to discuss your specific situation and need with a knowledgable agent.
Smart Financial: Best if you prefer working with an experienced agent
Being able to get quotes and buy a commercial auto insurance policy online may be necessary for many businesses. However, if your business is in a niche industry or is exposed to high risks, it may be difficult for you to be able to get an affordable quote and buy a policy online, you may prefer working with an experienced agent who has had a lot of experience working with businesses like yours. In such case, you may want to work with Smart Financial.
Smart Financial is a national insurance brokerage firm. They work with several leading insurance companies. They have an intensive network of agents who are very knowledgeable and experienced in helping businesses in all industries find affordable commercial auto insurance coverage at a reasonable rate.
After buying a policy from Smart Financial, you can also manage the policy on their digital dashboard.
>>MORE: Top 10 Commercial Auto Insurance Companies
What is Colorado commercial auto insurance?
There are roughly 630,000 small businesses, employing 1.1M people in Colorado . Any business that uses a vehicle for work needs commercial auto insurance. Your personal insurance policy will not cover your claims if the insurance company learn that you use your vehicle for work purposes (except for commuting back and forth to work: your personal auto insurance policy will cover that).
That means that if you’re a real estate agent who drives people around in your car to see houses, you need commercial auto insurance. Contractors, plumbers, restaurant owners, handyman, delivery drivers, etc. all of these need commercial auto insurance.
Learn more about the differences between commercial auto insurance and personal auto insurance and why it is important that you need to have commercial auto insurance coverage if you use a vehicle for business.
What does commercial auto insurance cover in Colorado?
Commercial auto insurance provides insurance in case you’re in an accident. It covers:
- Liability: if you cause an accident, this will protect you from bodily injury to other people in the accident. It pays for medical costs and lost wages of anyone injured.
- Collision/Comprehensive: Much like in a personal auto insurance policy, this covers damages to a third party and your own vehicle if you’re in an accident. It also covers theft, vandalism, weather damage, and damages from animals.
- Uninsured motorist coverage: Pays for your injuries and/or property damage if you’re hit by an uninsured motorist.
- Underinsured motorist: the person who hits you has coverage, just not enough. If you live in a no-fault state, your auto insurance policy will cover your losses.
>>MORE: Why do We Need Commercial Auto Insurance?
Commercial auto insurance coverage requirements in Colorado
Basic Commercial Auto Coverage Requirements in Colorado:
Colorado has certain minimums for all commercial auto insurance policies in the state. From here the amount of coverage will increase depending on your vehicle’s purpose and cargo.
The minimums are:
- $25,000 per Person
- $50,000 per Accident for Bodily Injury
- $15,000 for Property Damage
Insurance Coverage Requirements for Rideshare Drivers in Colorado:
Colorado state law requires that rideshare companies or their drivers carry a $1M primary liability policy for when drivers have accepted a ride, picked up a passenger, and are driving the passenger to another location.
When the rideshare app is on and the driver is waiting to get a passenger, they’ll also need additional commercial auto insurance coverage of:
- $50K for Bodily Injury Per Person
- $100K for Total Bodily Injury
- $30K for Property Damage
Property Transport Carrier Coverage Requirements in Colorado:
Colorado trucking companies must carry additional commercial auto liability depending on what they transport:
- General Freight: $750,000 Liability Insurance
- Oil Transport: $1,000,000 Liability Insurance
- Hazardous Materials: $5,000,000 Liability Insurance
- Household Goods: $300,000 Liability Insurance
Household goods movers also need to carry $10,000 per vehicle and $10,000 per incident in cargo insurance.
How much does commercial auto insurance cost in Colorado?
Commercial auto insurance tends to cost more than personal auto insurance. The average cost that small business owners in Colorado pay for commercial auto insurance is about $1,580 a year, or $132 a month. But it’s highly dependent on what you do, the type of vehicle you drive for business, how many vehicles you insure, and what kind of driving record you have.
Different insurance companies will have different quotes. Make sure you shop with a few companies or a digital broker such as CoverWallet to compare several quotes to select the cheapest quote for you.
>>MORE: How Much does Commercial Auto Insurance Cost?
How to find cheap commercial auto insurance in Colorado?
To save yourself money, here are some things you can do to reduce the cost of commercial auto insurance:
- Maintain a clean driving record.
- Hire drivers with clean driving records
- Increase your deductible (just make sure you can cover it if you get into an accident)
- Find discounts
Many insurance companies have discounts for commercial auto insurance policies. Some include:
- Continuous coverage
- Commercial driver’s license discount
- Pay-in-full discount
- Business insurance discount
- Paperless discount
- Multiple vehicles
You probably qualify for at least a few discounts. If you don’t, shop for a different insurance company.
>>MORE: How to Find Cheap Commercial Auto Insurance?
Who needs commercial auto insurance in Colorado?
It is legally required to have commercial auto insurance in Colorado. If you use a vehicle for business, you will need to have commercial auto insurance
- Anyone who uses their vehicle for work, other than commuting, needs commercial auto insurance in Colorado. For example, if you own a small family restaurant and use your minivan on daily basis to delivery grocery for your restaurant and delivery your customer orders, you will need a commercial auto insurance policy. Your personal auto policy doesn’t cover you and your vehicle in these situations.
- If you transport goods, services, or people for a fee, you probably need commercial auto insurance.
Business use for personal vehicles is not covered. If you lie and your insurance company finds out, they may drop you as a customer.
Should delivery drivers carry commercial auto insurance in Colorado?
If you drive for Uber, Lyft, or DoorDash in Colorado, these companies offer some protection and coverage when there is a guest in your car or when you carry food from a restaurant to the delivery address. However, things start getting murky when you are in between rides or deliveries. Different companies might have different rules and benefits. You may find yourself in situations when your personal auto insurance providers refuse your claim since you are using your car for business reasons and these delivery companies’ policies do not cover you either.
There is rideshare insurance available in Colorado, the best option is with Geico as we outlined above, but you can shop around with a few others. Many companies offer rideshare auto insurance coverage nowadays, so make sure you have it if you drive for Uber, Lyft, or DoorDash.
There are many aspects to running a business. Getting your goods or services to your clients on time is absolutely necessary if you want to stay in business. You’ll need to have commercial auto insurance coverage to protect you and your business if you use vehicles for the business in Colorado.
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