3 Tips to Buy Cheap Commercial Auto Insurance

Before you buy commercial auto insurance, be sure to evaluate, (1) your drivers, (2) your vehicles, and (3) the insurance company themselves.

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Mathew B. Sims is Editor-in-Chief and has authored, edited, and contributed to several books. He has been working in the insurance industry ensuring content is accurate for consumers who are searching for the best policies and rates...

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years (BBB A+). He is licensed as an agent to write property and casualty insurance...

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Reviewed byDaniel Walker
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UPDATED: May 29, 2020

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Here's what you need to know...

  • Purchasing commercial car insurance can be challenging
  • The size of the business, type of vehicle, and number of employees all need to be taken into consideration
  • Your employees’ driving records can impact your insurance premiums both positively and negatively

Buying personal auto insurance can be daunting, and in the same way, purchasing commercial auto insurance can also be a challenge.

The trick is realizing you are not insuring yourself, but your fleet of vehicles and your employees who are driving those vehicles. The same tools used to evaluate yourself when purchasing personal coverage should be used when purchasing for your company.

If commercial coverage is what you are looking for, simply enter your zip code in the FREE box above to receive quotes now!

Commercial Auto Insurance Facts

Commercial auto coverage is very similar to personal auto coverage. Many of the same liabilities covered by personal insurance are covered by commercial policies.

The major exception between the two types of coverage is eligibility requirements.

If the vehicle you are looking for coverage is driven in a commercial capacity, meaning you transport goods/people for a fee or you typically transport a large value of items, you must obtain commercial vehicle coverage.

Understanding commercial auto insurance is at its most basic level is the first step before purchasing a policy. Information can be found about various insurance policies and state regulations at your local DMV.

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Evaluating Your Drivers

One tip for finding cheap commercial auto insurance is identifying what type of drivers you have employed. Similar to personal auto coverage, companies base their premiums and quotes on driver histories.

If you are looking to hire a new driver for your fleet, consider acquiring a driving record from your local DMV.

This request will give you information about accidents, tickets, and other types of driving-related issues your potential hire has in their history.

Recognizing how insurance companies develop premiums for customers is important. A very helpful website from Rocky Mountain Insurance Information Association has information regarding the average cost of auto insurance throughout the United States.

Evaluating Your Fleet

Another consideration regarding your drivers is whether they are commercially licensed properly. Many insurance companies will offer discounts to drivers who have their Commercial Driver’s License or CDL.

When interviewing potential employees, ask questions regarding their licensing; this could save you money in the long run.

A second tip to consider is evaluating what kind of fleet of vehicles you are looking to insure. As with personal auto coverage, the more expensive the vehicle is the higher the premium will be.

When looking to purchase commercial auto coverage, look at the vehicles you currently own. In addition, consider what types of vehicles will be purchased shortly after acquiring the insurance policy.

If you have a fleet of older trucks, your policy choice and deductible options may vary, thus varying your overall premium price.

Also, note that premiums will vary widely, depending on the insurance company. Consider the type and size of the company and how well they are equipped to cover your assets. Bigger companies may have higher premiums, but they also have more capital to cover their customers’ claims.

Finally, consider the amount of deductible you are willing to pay. The higher the deductible, the lower your monthly premium will be.

Again, consider your fleet of vehicles and your drivers, evaluate how much your budget is willing to pay for your deductible and then make your decision.

Types of Vehicles

Many companies will offer a variety of insurance depending on the type of vehicle. Business auto coverage, which covers small, compact cars and trucks that handle basic travel, is one example of auto-specific coverage.

Other examples are pickup truck insurance, tow truck insurance, commercial truck insurance, and dump truck insurance. All of the various coverage options will vary in pricing, especially for vehicles that handle dangerous travel conditions on a consistent basis.

If your fleet of vehicles consists of a wide range of types, purchasing similar commercial coverage for each vehicle could also save you money. Also, if you bundle multiple vehicles together, even if they are different vehicle types, it will save you money.

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Evaluating the Insurance Company

A third tip for finding quality commercial auto insurance is evaluating the insurance company itself. Deciding on the right insurance company to cover your assets is vitally important. When discussing coverage options with an agent, remember that they are attempting to sell you coverage.

That means they may not give you full disclosure on the company itself. Doing background research on individual insurance companies is a smart move.

Government groups like the Better Business Bureau can provide quality information regarding companies, especially the smaller, locally owned agencies. You can find information on their website.

Investigate any discounts insurance companies offer. Discounts vary from company to company, and some can save you quite a bit of money.

From bundling policies together to driver’s license discounts, to being in business for a certain number of years, companies offer all kinds of discount incentives.

When shopping around, ask questions about possible discounts. There is also a wide range of information on auto insurance at the American Association of Motor Vehicle Administrator’s website.

Other Money-Saving Tips

Some insurance companies offer other discounts related to how you pay for your policy. Sometimes you can receive a discount for paying online or by an electronic funds transfer.

Other times, you can receive a discount by paying for your policy in full when you first make your purchase.

Many insurance companies offer percentage-based discounts for customers that combine personal and commercial policies. Most of the time, these are referred to as package discounts or multi-policy discounts.

Another thing to consider is where you live. Based on the state in which your company is located, insurance rates and premiums may vary. To find out further information and details regarding individual state insurance regulators, visit A.M. Best’s website.

There is a wealth of information regarding state-based auto insurance policies and national policies at the American Insurance Association’s website. The AIA has a database of web links that will give you access to quality information.

Finally, considering the type of business you own will also impact which insurance companies will cover your vehicles. For many companies, rates and premiums are based on the type of business you own.

If you happen to own a business that deals with high-risk driving situations, your quotes will be higher. Finding companies that offer quality discounts, in addition to quality prices for your individual business type, will save you money.

Understanding Insurance

Having a basic understanding of how auto insurance works, how companies price policies, and how to evaluate your situation is the first step in finding cheap commercial auto insurance. Keep in mind that every company has different needs.

Although finding quality auto insurance can be a hassle, by doing your homework and being prepared and educated, you will save money.

Just remember to consider all of the various elements that go into the auto insurance industry and understand your situation first.

To find quality, affordable commercial auto insurance quotes, enter your zip code in the box below!


  1. https://www.geico.com/information/aboutinsurance/commercial/
  2. https://www.moneysupermarket.com/car-insurance/business-cars/
  3. http://www.rmiia.org/index.asp
  4. https://en.wikipedia.org/wiki/Commercial_driver’s_license
  5. https://www.allstate.com/tools-and-resources/car-insurance/made-simple/deductibles-and-limits.aspx
  6. https://www.nationwide.com/multiple-policy-discount.jsp
  7. http://www.bbb.org/
  8. http://www.aamva.org/
  9. http://www.ambest.com/directory/govdir.html
  10. http://www.aiadc.org

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