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. He has also been featured on sites like UpJourney.

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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, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. He reviews content, ensuring that exis...

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent

UPDATED: Apr 23, 2020

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Things to Remember...

  • Commercial auto insurance is rated very differently than personal auto insurance though it still provides a business with comparable coverage categories to personal insurance
  • You also have to make sure that your commercial auto insurance has the correct named party on the insurance
  • The bottom line is that it is vital for your business to have commercial auto insurance if you have vehicles of any kind

Commercial auto insurance is rated very differently than personal auto insurance though it still provides a business with comparable coverage categories to personal insurance.

This greatly affects the charges and fees and it’s vital to understand the difference between the two types of auto insurance before you go to get a quote.

Enter your ZIP code into our FREE auto insurance comparison tool to find available quotes to compare today!

Here are some of the things to find out in order to get the best commercial auto insurance companies for your business:

How do auto insurance companies determine your costs?

When getting ready to choose cheap commercial auto insurance for your company, you need to first figure out exactly what type of coverage you need because you will have to have that information in order to get a reliable quote.

Commercial auto insurance providers will offer a business a customized quote dependent on the type of coverage, number of vehicles, number of drivers, etc.

Each insurance company out there most likely has various types of commercial auto insurance to choose from.

You will need to know what kind each place offers and the cost for the types of coverage you want so you can compare their quotes just like when you are buying your car insurance for your personal vehicles.

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What are the coverage options for commercial auto insurance?

  • Bodily injury liability – This covers if anyone is hurt or killed and your drivers are at fault, as well as providing a lawyer to fight your case
  • Property damage liability – This covers if your vehicle damages someone’s property, as well as providing a lawyer to defend your case
  • Uninsured motorist coverage – This covers you if your vehicles are damaged or your people are hurt and you are hit by someone with no insurance.
  • Comprehensive physical damage – This covers damage to your fleet from things like vandals, thieves, or disasters like flood or fire
  • Collision – This covers damage if any of your vehicles are hit or hit something
  • Medical or personal injury – This covers your costs for any medical treatment for injuries in a crash no matter if it was your driver’s fault or someone else

Variables for Determining the Cost of Commercial Auto Insurance

Some of the factors that must be considered when trying to get the best possible quote for your company include:

  • The number of drivers and vehicles to be insured – Commercial auto insurance bases their prices on how many vehicles and drivers you need to have insured. There is also an option of what is called fleet insurance if you have a lot of vehicles and drivers to put under your insurance. In many cases, fleet insurance is a cheaper option for commercial auto insurance, so this is vital to know when getting a quote
  • The location of your business – this greatly affects your price quote since it has to be determined the odds on things like the theft rate in the area, etc
  • Driving records – If your drivers have good, safe driving records, your prices will go down
  • Type of vehicles – For example, if you have regular, mid-sized sedan style vehicles, they will be cheaper to insure than more sporty style cars
  • Choice of deductiblesJust like in your personal insurance, the amount of your chosen deductible in commercial auto insurance affects the number of your costs
  • Safety or Anti-theft gear – If your vehicles have safety or anti-theft accessories like alarms or any type of GPS tracking and safety items like airbags, then it can lower your costs

Special Considerations for Commercial Auto Insurance

Plus, if you often use additional equipment with your commercial vehicles that is rented or otherwise doesn’t actually belong to your fleet, then you need additional commercial auto insurance to cover non-owned vehicles.

You also have to make sure that your commercial auto insurance has the correct named party on the insurance.

You may think that is easy, but often the actual owner of the vehicles isn’t your company or the actual company has a full name slightly different. Just be sure the real owners of the vehicles are what are listed on your coverage.

The bottom line is that it is vital for your business to have commercial auto insurance if you have vehicles of any kind. Compact cars for your sales agents to giant 18 wheelers to haul cargo around the states need commercial auto insurance.

Enter your ZIP code into our FREE car insurance comparison tool to find quotes now!