How much is insurance for a car hauler business?

Car hauling businesses pay an average of $787 per month, or $9,442 per year, for commercial vehicle insurance.

This policy pays for legal fees, medical treatment, and repairs if your auto hauler gets into an accident. It can also cover vehicle theft, vandalism, and weather damage.

Most states require commercial auto insurance coverage for vehicles owned by a business. For personal, rented, and leased vehicles used for work purposes, look to hired and non-owned auto insurance (HNOA) instead.

Additionally, the Federal Motor Carrier Safety Administration (FMCSA) regulates insurance for motor carriers, and requires $1 million in coverage for car haulers. Cars are considered hazardous materials, which is why the rate is higher than for general freight.

Clients and shippers expect you to have cargo insurance, and may require a certain amount of cargo coverage in their contracts. You might also need on-hook towing insurance for towed vehicles, garage keepers insurance if you store vehicles, and trailer insurance if your policy does not cover your trailer.

Finally, you should consider non-trucking liability (NTL) insurance for coverage while you're driving a car hauler off duty, and bobtail insurance for any driving that occurs without a trailer, such as between loads.

Insurers look at several factors when determining commercial truck insurance premiums. That includes the number and type of car carriers you have, how often they are driven, the value of your cargo, and the driving records of your employees.

The services you provide will also affect your premium. For instance, an auto hauling business that delivers new cars to dealerships would likely cost more to insure than a hotshot driver who brings damaged vehicles to auto body shops.

The coverage options you choose, such as physical damage coverage or an additional insured endorsement, will also influence how much you pay for auto insurance.

Driver safety is another important consideration. It'll cost less to insure truck drivers with a clean commercial driver's license (CDL) than those with accidents in their past.

Other ways to save money on your policy include opting for lower limits or a higher deductible, and skipping costly add-ons like comprehensive coverage and other kinds of physical damage insurance unless you need them.

Trucking businesses, including car haulers, pay an average of $51 per month, or $606 annually, for general liability insurance.

Also called public liability insurance, this type of coverage pays for legal costs related to third-party bodily injuries and property damage. For example, an employee might drop a client's laptop and break it, or a delivery person could slip on an icy front step at your office and suffer a concussion.

This policy also helps pay for legal fees if someone sues your business over an advertising injury, such as copyright infringement or defamation. For instance, a competitor might sue your business if your company's logo or slogan is too similar to their own.

Below is the average general liability policy for trucking companies that buy from Insureon:

Insurance premium: $51 per month
Policy limits: $1 million per occurrence; $2 million aggregate
Deductible: $750

The per-occurrence limit is the maximum your insurance company will pay for a single covered incident, while the aggregate limit is the most the insurer will pay for all covered claims during the policy period, typically one year.

The amount of coverage you need depends on your risk of a customer lawsuit. Businesses that have frequent interactions with customers are considered high risk, as the likelihood of an accident and lawsuit increases.

Insurance companies consider several factors when calculating the cost of your general liability policy. That includes the coverage limits and deductible you choose, the type of services you provide, your business income, insurance options such as an additional insured, and your policy's exclusions.

Small auto transport companies can save money on general liability coverage by buying it together with commercial property insurance in a business owner's policy (BOP). This cost-saving bundle protects against both common third-party lawsuits and damage to your office and business property.

For owners of car haulers and other trucking businesses, the average cost of workers’ compensation insurance is $650 per month, or $7,795 annually.

This type of insurance covers medical bills related to employee injuries, such as a driver who slips and falls while getting out of their truck. It also provides disability benefits while an employee is disabled or temporarily unable to work.

Most workers' comp policies include employer's liability insurance to protect against lawsuits from injured workers, though they give up their right to sue once they accept benefits.

Businesses with employees typically must purchase workers' comp to comply with state laws and avoid penalties. For example, businesses in California and New York must carry workers' comp if they have one or more full-time or part-time employees. Florida businesses need coverage when they have four or more employees, and coverage is optional in Texas.

Since health insurance plans can deny claims for injuries related to your job, workers' comp coverage is also recommended for owner operators and sole proprietors as a financial safety net and for peace of mind.

The cost of workers' comp depends on several factors, primarily the number of employees you have and their occupational risks. It's important to classify your employees correctly, from truckers to office workers, to ensure you're not overpaying for your policy.

As with other types of insurance, a workers' comp claim will result in a higher premium. Auto transport businesses can save money in the long run by implementing worker safety programs, such as one that teaches safe lifting techniques, to avoid injuries and subsequent claims.