Commercial auto insurance is essential for any business that owns company vehicles or has employees who drive while on the clock.
This type of insurance can protect your vehicles and other property, should they become damaged. It can protect your employees who are driving if they are in an accident, and it can protect against damage that is done to another person or property when your employee is determined to be at fault for an accident.
Just because commercial auto insurance is important to your business doesn’t mean you want to overpay for coverage you don’t need.
How much is commercial auto insurance? And is there any way you can keep costs down?
Here’s everything you need to know about the average cost of commercial auto insurance with tips on how you can make it more affordable.
The Average Cost of Commercial Auto Insurance
The average cost per vehicle for commercial auto insurance is $750 to $1,200 per year.
That doesn’t necessarily mean that’s what you’ll pay for commercial auto insurance. There are many factors that can impact exactly how much you’ll pay.
They include things like:
- The number of vehicles you are insuring
- The make and model of the vehicles
- The value of the vehicles
- How the vehicles are being used
- The driving records of those operating the vehicles
- Your claims history
Depending on these factors, you may pay even more for commercial auto insurance, while another business may end up paying less. Things like roadside assistance and rental reimbursement can also end up costing extra.
Tips for Keeping the Cost of Commercial Auto Insurance Low
When asking, “How much is commercial auto insurance?” it’s important to know how you can keep costs down. Fortunately, there are many ways to do that!
Pay attention to the make and model of the vehicles you’re using. Older vehicles are more affordable to insure, as are some models. For example, you’ll pay less for a four-door sedan than you will a two-door sport vehicle.
How far you drive matters. If you make far-flung deliveries, you’ll pay more for commercial auto insurance. Try pricing shipping options for long-distance deliveries. If you can keep personal deliveries local, you can save money.
Having only a few or no driving violations helps keep your insurance rate low. Choose your drivers carefully to reduce the chances of getting tickets or having accidents. Have meetings and trainings to remind employees of the importance of driving safely. Plug-in devices can also help encourage employees to drive more safely, while providing you with discounts.
The type of coverage option you choose matters too. Liability-only policies are more affordable in the short-run, while comprehensive coverage might actually help you save in the long-run. Especially if you’re insuring multiple vehicles and accidents are more likely.
You also need to look at the details of your policy carefully to ensure you aren’t paying for features you don’t need. For example, you may not want to pay for comprehensive coverage if your vehicles are parked inside a garage when they aren’t in use, but you may want to pay for collision coverage that will replace your vehicle if it is totaled in an accident.
If you want to know exactly how much commercial auto insurance is, or you’re looking for ways to save on your current commercial auto policy, contact DJM Insurance. Unlike insurance representatives who only work with a single carrier, our brokers work with over 50 different insurance providers. No matter what kind of coverage you need, we have multiple options for you to choose from, which means you can choose the perfect one at a low price.