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Commercial Auto Insurance Cost? A Complete Manual

Commercial auto insurance protects businesses that rely on vehicles for their operations. Let’s understand how much commercial auto insurance costs, what’s covered under the policy, and the key differences between commercial and business auto insurance.
Commercial Auto Insurance Cost
Commercial Auto Insurance Cost? A Complete Manual
Commercial auto insurance is a specialized type designed to cover vehicles used for business purposes. Here's how much it costs and the key parties covered under the policy. Let's explore!
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Commercial auto insurance is aimed at protecting those businesses that rely on vehicles for their operations. Whether you own a small delivery service, a construction company, or a fleet of cars, having the right insurance coverage is crucial. Before buying the coverage, it is important to comparing car insurance quotes from different providers. Beem is here to help you get the best deal for your budget and provide the coverage you need in case of an accident. Let’s understand how much commercial auto insurance covered, what’s covered under the policy, and the key differences between commercial and business auto insurance.

What is Commercial Auto Insurance and Do I Need It?

Commercial auto insurance is designed to cover vehicles used for business operations. It provides coverage for damages and injuries caused by accidents involving a company’s vehicles. You may require commercial auto insurance for vehicles used for business-related activities, such as transporting goods, making deliveries, or transporting employees.

The need for commercial auto insurance extends beyond just company-owned vehicles. It also covers vehicles owned by employees or leased vehicles used for business purposes. Remember that personal auto insurance policies generally exclude coverage for vehicles used for business purposes, making commercial auto insurance essential.

See Also: Does Commercial Auto Insurance Cover Personal Use?

Who is Covered Under Commercial Auto Insurance?

Commercial auto insurance covers various individuals and entities involved in business vehicle operations. Here are the key parties typically covered under this policy:

  • Business Owners: Business owners who own vehicles used for business activities are covered under commercial auto insurance, including sole proprietors, partnerships, and LLCs.
  • Employees: Employees who drive company-owned or leased vehicles as part of their job responsibilities are covered under the policy. This coverage helps both full-time and part-time employees.
  • Non-Owned Vehicles: Commercial auto insurance also covers vehicles not owned by the business but used for business purposes. This includes vehicles leased by the company or personal vehicles used by employees for business-related tasks.
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How Much is Commercial Auto Insurance?

The average cost of commercial auto insurance is $147 per month in the USA. However, this cost varies depending on several factors, including:

Business Size and Type

The size and type of your business play a significant role in deciding the cost of commercial auto insurance. A more significant business with a fleet of vehicles will generally pay more than a small business with a single vehicle.

Industry TypeMonthly commercial auto insurance cost 
Auto services$69
Media and Advertising$92
Wholesale $102
Building design$122
Nonprofits$123
Real estate$138
Retail$138
Professional services$139
Consulting$151
Food and beverages$152
Cleaning services$163
Construction and contracting$173
Landscaping$180
Installation professionals$184
IT/Technology$198
Table 1.0– Monthly commercial auto insurance cost by industry

Vehicle Types and Usage

The type of vehicles you use for your business, such as trucks, vans, or specialized vehicles, affects the insurance rates. Additionally, the frequency and distance of vehicle usage and the territories covered are considered when determining the premium.

Driver Records

The driving records of employees who operate the vehicles will impact the insurance cost. If you have a history of accidents or traffic violations, it can lead to higher premiums.

Coverage Limits and Deductibles

The coverage limits and deductibles you choose for your commercial auto insurance policy will also affect the cost. Higher coverage limits and lower deductibles generally lead to higher premiums.

Obtaining and comparing quotes from multiple insurance providers is recommended to get the best commercial auto insurance for your business. Doing so lets you compare the offerings and evaluate which policy best suits your needs. Insurance companies consider several factors while deciding premiums, so obtaining customized quotes tailored to your business requirements is crucial for accurate pricing.

also know about: is car insurance tax deductible

Difference between Commercial and Business Auto Insurance

While the terms “commercial auto insurance” and “business auto insurance” are often used interchangeably, there are some subtle differences between the two:

Scope of Coverage

Commercial auto insurance is typically broader in scope and covers a more comprehensive range of business-related activities involving vehicles. On the other hand, business auto insurance is a generic term referring to insurance coverage for vehicles used for business purposes but may have limitations in terms of coverage.

Vehicle Types

Commercial auto insurance is designed to cover various vehicles used for business operations, including trucks, vans, and specialty vehicles. Business auto insurance is commonly associated with smaller vehicles, primarily for business errands or deliveries.

Policy Structure

Commercial auto insurance policies often have more extensive coverage options and higher coverage limits to meet the unique risks businesses face. Business auto insurance policies may have more standardized coverage options and lower coverage limits.

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Conclusion

Commercial auto insurance is critical for businesses that rely on vehicles for operations. It provides essential coverage for accidents, damages, and injuries during business-related activities. But, how much is commercial auto insurance? To determine the cost of commercial auto insurance for your business, consult with reputable insurance providers who provide accurate quotes per your needs.

Auto insurance with Beem provides coverage for damage to your vehicle, damage to other vehicles or property, and injuries to yourself or others. You can use Beem’s online comparison tool to find the best policy for your needs. While finding cheap commercial auto insurance is essential, it is equally crucial to prioritize the coverage and protection that suits your business requirements.

Frequently Asked Questions

1. Can I Add Additional Drivers to My Commercial Auto Insurance Policy?

Yes, you can add additional drivers to your commercial auto insurance policy. However, providing accurate information about their driving records is essential, as this can affect your premium.

2. Is Commercial Auto Insurance Tax Deductible?

In most cases, commercial auto insurance premiums are tax-deductible as a business expense. However, it’s advisable to consult with a tax professional or accountant for advice based on your business circumstances.

3. What Happens If an Employee Gets into an Accident While Driving a Personal Vehicle for Business Purposes?

If an employee gets into an accident while using their vehicle for business purposes, your commercial auto insurance may cover damages and injuries. However, coverage can vary depending on the policy terms and conditions, so it’s essential to review your insurance policy and consult with your insurance provider to understand the specific coverage in such situations.

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Author

Picture of Aniket Kulkarni

Aniket Kulkarni

A seasoned Product Manager specializing in car insurance content, Aniket has a passion for simplifying complex insurance concepts. His strategic approach to content development reflects years of experience in the product development industry, coupled with a commitment to providing accurate, reliable information.

Editor

This page is purely informational. Beem does not provide financial, legal or accounting advice. This article has been prepared for informational purposes only. It is not intended to provide financial, legal or accounting advice and should not be relied on for the same. Please consult your own financial, legal and accounting advisors before engaging in any transactions.

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