An important policy that many small businesses need is commercial auto insurance. However, it can get costly depending on your driving history, the amount of coverage needed, and more. Learn how you can pay less for auto insurance and still get the protection your business needs.
A commercial auto insurance policy is must-have coverage for any business that owns or operates vehicles. Whether your business relies on a vehicle like a food truck, requires you to transport equipment to multiple locations like a landscaping business, or has a fleet of tractor trailers, your drivers face risks every time they hit the road.
These four steps can help you get the most affordable commercial auto insurance without sacrificing any protection for your small business:
Each state regulates commercial auto insurance differently, so it’s important to know the requirements for your location.
Every state, except New Hampshire and Virginia, requires commercial auto insurance coverage for business vehicles. Additionally, all states require you to prove your ability to compensate someone if you or an employee is at fault in an accident.
In most cases, if you use a personal vehicle for business purposes outside a commute, a personal auto insurance policy won’t cover you in the event of a work-related accident.
Insurance carriers often offer different types of coverage options with a wide range of prices. And while you could reach out to each auto insurance company directly to ask for quotes on their business auto insurance policies, there’s an easier, faster way.
You can work with an insurance agent or digital insurance marketplace—like Insureon—to get commercial auto quotes from several insurance providers. They’ll navigate your industry to source an affordable commercial auto policy that provides all the protection your business needs.
Working with an Insureon agent can usually save you money. You can compare commercial auto insurance quotes from top-rated providers by filling out an easy online application. A licensed Insureon agent will then be available to walk you through your options and help you find a policy that fits your risks and budget.
Plus, an experienced agent can help you set appropriate limits and let you know which add-ons you can safely skip. Without expert help, you might not know if the policy provides too much coverage, or not enough.
Your driving history has one of the largest impacts on your premium overall. Even a tiny infraction can significantly increase your rate. By keeping a clean driving record for you and your employees, your rates can remain at an affordable price.
Beyond an accident-free driving record, maintaining your company-owned vehicles helps manage the risks you or your employees face when operating the vehicle. Staying on top of the maintenance and service schedules, as well as properly cleaning them, will provide a safer work area for vehicle operators.
Additionally, make sure to share tips for safe driving with your employees, such as avoiding calls and texts while on the road.
Another way to save on your commercial auto premium is by choosing less expensive policy options. Here are a few areas you can adjust to save money:
Choose lower limits. Lower per-occurrence limits and aggregate limits cost less. Keep in mind they also provide less coverage in an accident, since your insurer will cover costs up to your liability limits.
Choose a higher deductible. Higher deductibles cost less, but make sure it's an amount you can easily afford. If you get into an accident, you'll have to pay the deductible before you can benefit from having insurance.
Avoid unnecessary policy options. You can save money by opting out of pricier options, such as comprehensive coverage that pays for vehicle damage from any source.
Commercial auto insurance typically provides financial protection from medical payments, property damage, or legal expenses due to an automobile accident. You can also get coverage for vehicle theft, vandalism, and other damages.
Depending on the options you choose, your policy may cover:
Auto liability: This helps pay for damages in an accident you caused, including vehicle repair costs and legal expenses if you’re sued over the other driver’s injuries.
Medical payments coverage: Your policy would pay for medical bills for you and any passengers in your company vehicle, regardless of who caused the accident.
Damage coverage and collision coverage: This protects against vehicle theft and physical damage, and provides comprehensive coverage for non-collision damage related to bad weather or an impact with an object.
Uninsured motorist coverage: This makes sure your business doesn’t have to pay for medical expenses or vehicle repairs from an accident involving an uninsured driver.
While commercial auto insurance covers vehicles owned by your business, it does not provide complete protection. For instance, it does not provide coverage for the following:
Hired and non-owned auto insurance (HNOA) is the appropriate policy for vehicles your business uses but doesn't own. That includes leased, rented, and personal vehicles.
If your business is storing, transporting, or performing service on a customer's motor vehicle, like a towing company or repair shop, it would not be covered under your commercial auto insurance. In this case, you should consider garage liability insurance to insure customer vehicles while they’re in your care, custody and control.
If you run a courier, delivery, or transport service, you need to make sure you’re financially protected beyond your personal use car insurance, which most likely doesn’t include food delivery or rideshare coverage.
Professional liability insurance / Errors and omissions insurance: Professional liability, also known as E&O or malpractice insurance, covers legal expenses if a client sues you over unsatisfactory work, errors, or a disagreement.
Workers’ compensation insurance: Workers' comp is required in almost every state for businesses that have employees. It can cover medical expenses for work injuries, which are not often covered by regular health insurance.
Business owner’s policy (BOP): A BOP bundles general liability coverage with commercial property insurance. It generally costs less than buying these two policies separately.
Complete Insureon’s easy online application today to find affordable commercial auto insurance coverage from top-rated U.S. companies. You can also consult with an insurance agent on your business insurance needs, including finding affordable workers’ comp and E&O policies.
Once you find the right types of insurance for your small business, you can begin coverage and receive your certificate of insurance in less than 24 hours.