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Commercial Auto Insurance Is A Type Of Business Insurance That Protects Vehicles Used For Business And Provides Liability In The Event Of An Accident
Commercial Auto Insurance For Contractors
If you own a vehicle that is used for business, it is very important that you have commercial auto insurance coverage. Personal auto insurance policies are not enough, so you may find yourself in legal trouble if you don’t purchase a separate policy for business functions.
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We at the Guide Team have researched the best auto insurance providers to find out which ones offer the strongest commercial auto insurance policies. We also dig into the details of commercial insurance to reveal what coverage you need on your vehicle.
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The Guide Team is committed to providing reliable information to help you make the best decision about your vehicle insurance. Because consumers rely on us to provide objective and accurate information, we created a comprehensive rating system to formulate a ranking of the best car insurance companies. We collected data on dozens of car insurance providers to rate companies on a variety of ranking factors. After 800 hours of research, the end result is an overall rating for each provider, with insurers scoring the highest points on the list.
Commercial auto insurance is the required coverage for all vehicles that are normally used to perform business functions. It is necessary for large fleets and commercial trucks, but also for personal cars and vans used regularly by small business owners.
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Your car may need a personal auto insurance policy and a commercial auto insurance policy. Vehicles are generally considered to be at greater risk of damage when they are used to doing business, so your personal auto insurance may not be enough.
Commercial auto insurance can cover a variety of things including bodily injury, property damage, collision, medical payments and uninsured motorist coverage. Policies are also available with comprehensive and personal injury protection as well.
However, commercial auto insurance usually covers the car, not the driver. Your policy should offer underwriting for your vehicle when it is used for business purposes, regardless of whether an employee or family member is behind the wheel. We will run through the most common types below.
Liability car insurance pays the other driver’s medical expenses when you are at fault for an accident
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Many car insurance companies offer additional types of coverage, such as roadside assistance, rental reimbursement and towing services. These commercial auto insurance add-ons are optional, but they can add peace of mind in the event of a mechanical breakdown.
Most business owners can expect to spend at least $2,000 annually for full coverage commercial auto insurance, with those covering tractor-trailers spending far more than those with small vans. However, it is difficult to determine how much your commercial auto insurance policy will cost, especially since different types of businesses charge different premiums.
We achieved commercial auto insurance quotes for a 2020 Ford Transit-150 used by a painting business in Pittsburgh, as an example. Below are the estimated rates we receive:
The average rate for commercial auto insurance from Progressive is $187 per month in 2020, which adds up to $2,244 annually. Premiums will vary depending on the general purpose your vehicle will be used for, so expect to receive different rates.
Commercial Auto Insurance
You will pay more for commercial auto coverage than a personal auto insurance policy because business vehicles are generally more at risk of damage than personal vehicles on the road.
Our rate estimates show a 35-year-old with a good driving record and good credit would pay an average of about $144 per month, or $1,732 annually, for a full-coverage personal auto insurance policy.
Each car insurance company charges different rates for various policies, and that certainly applies to commercial car insurance. The best way to find out the potential costs is to compare car insurance quotes from providers before landing on your final choice.
Certain factors almost always affect your car insurance premium, and some apply specifically to commercial car insurance. Below, we will see what will affect your price:
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Again, you’ll want to consider several commercial auto insurance quotes before choosing a policy. That way, you can find an extensive coverage policy at an affordable price.
Anyone who regularly uses their vehicle for business purposes should purchase commercial auto insurance. Below are some situations when you will be required to carry a commercial policy:
Commercial auto insurance isn’t the same as rideshare insurance, which you’d buy if you drive for ride-hailing services like Uber and Lyft. Commuting to work is considered personal use, so you don’t need commercial auto insurance for that activity.
If your company uses a leased or borrowed vehicle, such as a rental car or an employee car, you need non-owned car insurance. This basic coverage provides commercial vehicle insurance for short-term needs, and usually pays for general liability and defense costs.
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Commercial auto insurance can provide coverage for business use vehicles and people who get injured in accidents with them. Costs for policies vary widely based on various factors that include location and type of vehicle. If you need commercial vehicle coverage, we recommend that you compare quotes and weigh your options to get the best deal.
If you need to buy commercial auto insurance, you may be wondering where to find the best coverage. It is usually quite easy to find affordable and excellent commercial car insurance policies from Progressive and Geico.
Progressive is known for insuring almost any type of driver or vehicle, making it a great choice for commercial auto insurance. From food trucks and sedans to tractor trailers, Progressive will take care of most business vehicles.
Drivers should know that Progressive scored below the industry average for large insurers in the JD Power 2022 US Insurance Shopping Study ℠. Our team reached out to Progressive for comment on this score but did not receive a response. However, the company’s willingness to be able to insure most types of drivers and vehicles still makes it a top choice for commercial car insurance.
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Geico offers amazing auto insurance for businesses, usually at some of the lowest prices. The company has a financial strength rating of A++ from AM Best, so it can easily cover insurance claims in the event of an accident.
Be aware that Geico’s commercial auto insurance policies have exclusions that prohibit coverage for tractor trailers and semis. Our team reached out to Geico for comment on this exclusion but did not receive a response. Those who need protection for their food truck, pickup or van fleet should contact a Geico insurance agent, though.
Commercial auto insurance covers any vehicle that is normally used for business purposes. It is important for small business owners and those with fleets of vans or trucks to have commercial auto insurance coverage.
Commercial auto insurance can cover everything from personal cars used for business to food trucks, fleets of vans and tractor-trailers.
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Business car insurance will usually cover vehicles used to carry out routine tasks in the city for the company. Commercial auto insurance covers vehicles for business use that involve specific and more important jobs, such as transporting equipment from one place to another.
Because consumers rely on us to provide objective and accurate information, we created a comprehensive rating system to formulate a ranking of the best car insurance companies. We collected data on dozens of car insurance providers to rate companies on a variety of ranking factors. The final result is the overall rating for each provider, with the insurers that scored the most points topping the list. Commercial auto coverage is very similar to personal auto coverage. Many liabilities are covered by personal insurance covered by commercial. The main exception between the two types of coverage is the eligibility requirements. If, for any reason, the vehicle that you are looking for coverage is driven in a commercial capacity, meaning that you transport goods / people for a fee or you usually transport a large value of goods, you must ask for commercial vehicle coverage.
A commercial auto insurance policy is required in most situations when the vehicle is used for business purposes and meets other requirements. It is not just registration that determines the requirements for a business car insurance policy. Other requirements are ownership by a corporation, use to transport goods for hire and gross vehicle weight of the vehicle.
Even if the organization does not own a vehicle, it is important to have a policy for Non-Owned and Leased Auto coverage. In most states, there are three different entities that can be sued for damages resulting from a car accident. These three entities are the driver of the vehicle at fault, the owner of the vehicle
