If you frequently use your vehicle for business purposes, or if your company owns a commercial vehicle in Pennsylvania, you probably need commercial auto insurance. Asides from that the laws of the state make it compulsory, personal car insurance does not cover commercial vehicles. Therefore, business owners in all industries that use vehicles use commercial auto insurance to protect themselves, their vehicles, and their businesses.
This article is a detailed guide showing you everything you need to know as regards commercial auto insurance in Pennsylvania.
- The 6 best commercial auto insurance in Pennsylvania
- What does commercial auto insurance cover in Pennsylvania?
- What Pennsylvania commercial auto insurance does not cover?
- Who needs commercial auto insurance in Pennsylvania?
- What is the average cost of commercial auto insurance in Pennsylvania?
- How to find cheap commercial auto insurance in Pennsylvania?
The 6 best commercial auto insurance in Pennsylvania
- CoverWallet: Best for comparing online quotes
- Progressive: Overall best
- Barr’s Insurance: Best with local experience in Pennsylvania
- Nationwide: Best for fast online quotes
- Travelers: Best for excellent customer satisfaction
- Geico: Best for rideshare drivers
CoverWallet: Best for comparing online quotes
CoverWallet does not provide any insurance policies. Instead, they act as an online broker where you can find quotes about carriers that they partner with. Even then, they are a leader in what they do. To testify to their good work, the company has an A+ rating with the Better Business Bureau. It also has an A+ rating for assisting businesses in finding commercial auto insurance. CoverWallet is owned by AON, a company that specializes in global risk, retirement, and health solutions. Since they collaborated in 2002, their collaboration has added value and growth by improving and expanding the digital client experience of CoverWallet as a whole.
Progressive: Overall best
Progressive tops the list of our best commercial auto insurance in Pennsylvania. It also tops the list in terms of truck-specific policies. Generally speaking, this insurer performs above average in all areas. When you check their insurance offering, you will see that their plans are adaptable and accommodating for almost all business types. In addition to that, they provide customized coverage plans as well as numerous discounts to go with their policies. To cap it all, Progressive has an a+ rating with A.M. Best for their financial strength. The BBB has also given them an A+ rating for customer satisfaction.
Barr’s Insurance: Best with local experience in Pennsylvania
If you are looking for an insurer that has the best local experience in Pennsylvania state, Barr’s insurance is the best option. Barr’s Insurance has been providing solutions to life’s uncertainties since 1873. Although the company does not offer any policy of its own, it represents many financially sound insurance companies. It is an independent agency where you can find the best product and pricing for your auto insurance needs in Oil City, Franklin, Titusville, Clarion, Grove City, and throughout the state of Pennsylvania. To get a quote from this company, you will need to send them a message as they do not offer instant quotes.
Nationwide: Best for fast online quotes
Nationwide is another commercial auto insurance recommendation that can replace progressive if you need an alternative. The recommendation comes in easy because of its numerous coverage options, elite customer satisfaction ratings, and strong financial strength. Like progressive, their standard business auto policy covers everything your business needs. They also offer several optional extensions for their standard policy. In terms of customer satisfaction, and financial strength, the company has almost A+ ratings in all their rankings with the A.M. Best. To top it all off, if you participate in their real-time data monitoring program, Nationwide will provide you with substantial discounts.
Travelers: Best for excellent customer satisfaction
Travelers have been in business for over 150 years, making it one of the oldest insurance companies in the world. As an industry leader, Travelers has continued to set the pace for other insurers. At the moment, they offer an IntelliDrive rate pricing program. With this program, they determine your rates by assessing the safe driving behavior of your driver alongside other factors like his experience and some other things with a smartphone app. Enrolling in IntelliDrive can also help reduce your annual insurance rates by up to 20% of your drivers demonstrate safe driving habits.
Geico: Best for rideshare drivers
Geico is our top pick for livery insurance, especially for rideshare drivers. Those are vehicles that companies use for the business of transportation. This includes Uber, Lyft, traditional taxi cab and limo services companies are all examples. Geico is an excellent choice for commercial auto insurance coverage in general, as it scores highly in our evaluation of all key factors. However, Geico stands out in this category due to its unique coverage options for rideshare and livery drivers.
What does commercial auto insurance cover in Pennsylvania?
Just like your personal auto insurance, a commercial auto insurance policy protects you from similar costs coming from a collision, medical payments and so on. The only difference that might exist is that unlike personal auto insurance, commercial auto insurance special exclusives, limits and eligibility.
For instance, for many carriers in Pennsylvania, these policies are typically called named driver-only policies. As a result, only drivers listed on the policies can operate the vehicle that is insured. Otherwise, the carrier might not cover for damages in case of problems.
That said, commercial insurance in Pennsylvania might cover the following:
- Bodily injury liability: This coverage will compensate for any form of bodily harm or even death caused by an accident in which you were at fault. The coverage will also provide you with legal representation in such circumstances.
- Property damage liability: this coverage protects you and offers you legal representation if your commercial vehicle accidentally damages someone else’s property.
- Combined single limit (CSL) – Sometimes, liability insurance can include separate limitations for bodily injury and property damage claims. A combined single limits policy provides the same monetary amount of coverage per covered incident, whether it is bodily injury or property damage, and whether it affects one person or multiple people.
- Medical payments liability: this is also called the “no-fault or personal injury coverage.” In Pennsylvania, this coverage pays for the treatment of everyone present in your commercial vehicle incurred as a result of a covered collision, regardless of who is at fault.
- Uninsured motorist coverage: This coverage pays for your injuries caused by an uninsured or a hit-and-run driver. In some cases, it might also cover for property damage and also the underinsured motorist coverage. That would be in a situation where the driver at fault is the person without sufficient insurance.
- Comprehensive physical damage coverage: This coverage pays for damage to or replacement of your car from theft, vandalism, flood, fire, and other covered perils.
- Collision coverage – pays for damage to your car when it hits or is hit by another object.
What Pennsylvania commercial auto insurance does not cover?
Generally speaking, commercial auto insurance in Pennsylvania will not cover any of the following:
- Mechanical breakdowns that occur while on the job.
- Expensive claims or lawsuits that exceed the limits of the policy.
- Damages caused by equipment attached to a covered vehicle
- Damage to or destruction of leased/employee-owned vehicles.
- Any vehicle not covered by the policy is, of course, uninsured.
Basic Commercial Auto Coverage Requirements in Pennsylvania:
The government of Pennsylvania requires that all commercial vehicles carry basic auto insurance alongside medical benefits coverage. In Pennsylvania, the basic commercial auto insurance requirements start at:
- $15,000 Bodily Injury Liability per Person
- $30,000 Bodily Injury Liability per Accident
- $5,000 Per Accident Property Damage Liability
- $5,000 in Medical Benefits
Insurance Coverage Requirements for Rideshare Drivers:
Rideshare drivers are expected to carry higher insurance coverage when they have their TNC apps turned on, but haven’t yet accepted a ride request or picked up a passenger. These minimums are:
- $50,000 For Bodily Injury
- $100,000 For Bodily Injury
- $25,000 For Property Damage
When you have accepted a ride request and are heading to pick up a rider, have already picked up a rider, and/or are in the middle of driving a rider to their destination, you are required to carry:
- $500,000 for Death, Bodily Injury, and Property Damage
- $25,000 Medical Payments for Passengers and Pedestrians
- $5,000 Medical Payments for a Driver
The rideshare company will often provide partial or complete coverage for drivers from the moment they accept a ride request until they drop off a rider.
Other Passenger Carriers Insurance Requirements:
If you are a motorcoach company or transport multiple passengers in a vehicle, you’ll have slightly different commercial auto insurance requirements in Pennsylvania. These can include:
- Passenger Carriers – 15 People or Less: $15,000 Bodily Injury Per Person, $30,000 Bodily Injury Per Accident, and $5,000 Property Damage Per Accident
- Passenger Carriers – 16 to 28 People: $1,000,000 Combined Single Limit Coverage Per Accident Per Vehicle
- Passenger Carriers – 29 People & Up: $5,000,000 Combined Single Limit Per Accident Per Vehicle
Property Transport Carrier Coverage Requirements:
General Freight: $300,000 Liability Insurance for Vehicles Less than 10K Lbs./$750,000 Liability Insurance for Vehicles Over 10K Lbs.
- Oil Transport: $1,000,000 Liability Insurance
- Hazardous Materials: $5,000,000 Liability Insurance
- Household Goods: $750,000 Liability Insurance
- Household goods movers also need to carry $5,000 per vehicle in cargo insurance.
Who needs commercial auto insurance in Pennsylvania?
If your business operates with cars, you need a commercial insurance policy. In general, if you own any of the following businesses, you may benefit from commercial auto insurance in Pennsylvania:
- Businesses that own vehicle fleets.
- Transportation and logistics firms.
- Transportation companies such as charter buses, taxis, and limousines.
- Landscaping, snow removal, and property management firms.
- Businesses that transport their vehicles between multiple locations.
What is the average cost of commercial auto insurance in Pennsylvania?
The cost of commercial auto insurance in Pennsylvania will vary depending on several factors such as your profession, the vehicle type, driver’s history, location, travel radius, and coverage needs.
To have a better understanding, consider the following hypothetical scenarios.
Mr. A runs a waste disposal company. He has a garbage collection truck that moves around in Harrisburg with a driver that has just a year of experience. His driver has also had an accident in his last year of driving.
Then there is Mr. B who runs a Pizza delivery company. Mr. B has a small Toyota corolla with which he runs his business. He has been driving now for 10 years and to date, he has not had any accidents.
With the information above, any carrier will charge Mr. A higher for a premium than Mr. B even if they both go for a $1m /$3m coverage in Harrisburg. That’s because Mr. A does his business under conditions that carry more risk compared with Mr. B. Mr. B might even get a lower price for his premium if he does his business in a less populated area of Pennsylvania like in Wellsboro.
How to find cheap commercial auto insurance in Pennsylvania?
Here are some tips to help you find the coverage you need at a fair price:
- Shop around for the best value. Get quotes from a few companies or compare the multiple quotes generated by a service like CoverWallet.
- Don’t stop shopping around. Make sure you get new quotes before you renew your policy.
- Take advantage of discounts. If they’re not offered to you when getting a quote, ask about them, whether you’re buying online or through an agent.
Taking these steps will help ensure you’re not paying too much for your commercial auto coverage in Pennsylvania.