☰ ˟
Call Us Today / 855.554.6482
Logo
  • Home
  • Get A Quote
  • Policy Service
  • What We Offer
    • Automobile
    • Business & Commercial
    • Flood
    • Homeowners
    • Limousine
    • Motorcycle
    • Recreational Vehicle
    • Renters
    • SR-22
    • Watercraft & Boat
  • Resources
    • View Our Blog
    • Review Us
    • Insurance Glossary
    • News Center
  • Payment/Claims
  • About Us
    • About Guardian Insurance
    • Our Location(s)
    • Employee Directory
    • Customer Testimonials
    • Privacy Policy
  • Contact Us

Find the right coverage that fits your needs!
Home > Blog > Is Commercial Auto Insurance Expensive?
THURSDAY, JULY 30, 2020

Is Commercial Auto Insurance Expensive?

Commercial auto insurance is an important part of most business’ insurance protection plans. It provides compensation in case of accidents and damages caused or sustained by the company’s vehicles. Unfortunately, commercial auto insurance doesn’t always come cheap.Man next to business van

On average, businesses pay between $900 and $1,200 a year for commercial auto insurance. This is relatively affordable, but it depends on a variety of factors.

 

Coverage Limits

 

The more coverage a business has, the higher premiums they will pay. But having lower coverage limits can leave your business open to paying expenses out of pocket after an accident. 

Keep in mind that some states have minimum insurance requirements for commercial vehicles, especially those that carry passengers or hazardous material. Check your state’s minimum commercial auto insurance requirements and calculate how much coverage your business’ vehicles need.

 

Location

 

Along with different requirements, states also differ when it comes to insurance prices. This is in part due to the area’s claims history, regulations and cost of living. Expensive areas may charge more for commercial auto insurance, as claims in that area are likely to cost higher than in other areas.

 

Size of the Business

 

Larger businesses that have more employees and vehicles pay more for commercial auto insurance. If multiple employees will be operating vehicles, even if they are sharing vehicles, your company’s commercial auto insurance policy is likely going to cost more.

 

Driving Records

 

Unlike personal auto insurance policies, commercial auto insurance usually doesn’t only consider one driving record. Anyone who will be driving the work vehicle(s) may be held liable for damages they cause, and so their driving record may come into play when calculating the cost of your business’ commercial auto insurance policy. It’s critical to vet all drivers and make sure they have clean records before hire.

 

Credit and Claims History

 

Finally, your credit score and the claims history of the business can raise or lower your commercial auto insurance rates. Poor credit generally raises rates while good credit can save you a lot of money. You may build credit by paying off loans and debt you or the business may owe.

 

As with other insurance policies, filing a claim has a chance of raising your rates. A company with a long history of claims will typically pay more for insurance than companies without. To avoid filing a claim that may raise your rates, make sure all drivers are vetted and practice defensive driving.

 

ALSO READ: What Does a Business Owners Policy Cover?

 

 

Posted 6:25 PM

Tags: commercial auto
Share |


No Comments


Post a Comment
Required
Required (Not Displayed)
Required


All comments are moderated and stripped of HTML.

NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive
  • 2021
  • 2020
  • 2019
  • 2018
  • 2017
  • 2016
  • 2015
  • 2014
  • 2013
  • 2012
  • 2011

  • insurance(43)
  • georgia(25)
  • coverage(25)
  • business insurance(24)
  • guardian insurance(22)
  • auto insurance(18)
  • lawrenceville(12)
  • atlanta(8)
  • protection(8)
  • renters insurance(8)
  • georgia insurance(7)
  • home insurance(7)
  • motorcycle insurance(7)
  • tips(7)
  • liability(6)
  • general liability(6)
  • business(6)
  • atlanta auto insurance(5)
  • lawrenceville ga insurance(5)
  • commercial auto insurance(5)
  • auto(5)
  • car insurance(5)
  • car(4)
  • flood insurance(4)
  • rv insurance(3)
  • auto insurance lawrenceville(3)
  • lawrenceville car insurance(3)
  • workers compensation(3)
  • requirements(3)
  • sr-22 insurance(3)
  • lawrenceville auto insurance(3)
  • builders risk(3)
  • options(3)
  • recreational vehicle insurance(2)
  • rates(2)
  • flooding(2)
  • unmarried couples(2)
  • premiums(2)
  • commercial insurance(2)
  • maintenance(2)
  • customer service(2)
  • owners(2)
  • roswell auto insurance(2)
  • small business insurance(2)
  • car insurance lawrenceville(2)
  • buy auto insurance(2)
  • safety(2)
  • lawrenceville motorcycle insurance(2)
  • general liability insurance(2)
  • atlanta rv insurance(2)

View Mobile Version

Our Customer Feedback

Read More

Our latest blogs

  • Carrier
  • Carrier
  • Carrier
  • Carrier
  • Carrier
  • Carrier
  • Carrier
Guardian Insurance
888 Pleasant Hill Rd NW, Suite E
Lilburn, GA 30047
We at Guardian Insurance have been offering our customers tailored polices with the best coverage at the most affordable price. We service several areas such as the the Metro Atlanta area of Georgia.
We're here for you
Home Page/ About Us/ Contact Us/ Our Blog/ Join Our Newsletter/ Refer A Friend
Quick Help Links
Quote Forms/ Make a Payment/ Insurance Glossary
Icon Icon
Icon Icon Icon
Social Icon Social Icon Social Icon Social Icon
© Copyright. All rights reserved. Powered by Insurance Website Builder