Commercial auto insurance

All you must know about insurance for business vehicles

There are numerous types of insurance available, and you need to have a valid insurance plan that meets the requirements of your state to drive legally. If you are a business owner or sole proprietor who uses your vehicle for commercial purposes, you may need to purchase a commercial automobile insurance plan. Knowing which plan is the best for you and suits your needs is an essential part of protecting yourself financially. Auto insurance plans can protect you if an accident occurs, if damage to property occurs, or if there is damage to your vehicle. Knowing what the many types of insurance plans are is essential, and of the tools here at Fontana Trucking Insurance give you the top tips for purchasing the best plan for your business. You can also use the free quote tools on this website to compare prices from multiple top commercial auto insurance companies. Comparison-shopping is one of the best ways to save money on this essential insurance policy.

What Is Commercial Auto Insurance?

Commercial auto insurance is required by law in the vast majority business of cases. It provides protection and can help cover the cost of an automobile accident if either you or an employee of yours is at fault. Commercial coverage can help pay for damaged property, as well as medical expenses, and can provide essential protections if a fatal accident occurs. As a business owner, whether you are part of a company or an independent owner yourself, driving legally and well protected is important. Some examples of what is covered by commercial auto insurance include an employee hitting a pedestrian, damage to mailboxes and signs, and collision damage between vehicles. There are numerous different types of auto insurance plans and a lot of flexibility in terms of coverages. The first step to getting a proper auto insurance plan is to determine if you need commercial car insurance coverage or another type of coverage. There are many different businesses that utilize transportation, and your insurance policy may be different if you are transporting goods, transporting people, or transporting expensive equipment. Regardless of what you are transporting, you should take the time to get a plan that is appropriate for you.

Do I Need Commercial Auto Insurance?

How much car insurance you need for your business is dependent on many variables. It is important to purchase an appropriate amount of coverage to best protect yourself. It is possible to purchase too much protection, though most people do purchase policies conservatively. There are many types of commercial insurance policies, including plans that are designed for specific businesses. If you have a towing company, for example, you will be looking for tow truck insurance. People who are transporting expensive goods will need a specific type of coverage to make sure these goods are covered in case an accident occurs. The best way to determine if you are in need of a commercial insurance plan is to utilize the tools here. You can also check with the Department of Motor Vehicles for more information on your specific needs. You may also need to get a commercial driver’s license, something to keep in mind. Different states can have different laws in terms of minimum insurance requirements and requirements in general.

  Commercial Auto Insurance Personal Auto Insurance
Intended For
  • Vehicles owned by a business
  • Vehicles used to conduct business
  • Vehicles owned and used by individuals and families
  • Liability
  • Physical Damage
  • Medical
  • Under/Uninsured Motorist
  • Liability
  • Physical Damage
  • Medical
  • Under/Uninsured Motorist
Covered Vehicles
  • Passenger Cars
  • Vans
  • Pickups
  • SUVs
  • Delivery Vans
  • Cement Mixers
  • Haulers
  • Cranes
  • Various trucks
  • Passenger Cars
  • Vans
  • Pickups
  • SUVs
Covered Parties
  • Employees
  • Individuals (policyholders)
  • Friends / Family
Annual Cost per Vehicle
  • Passenger vehicles: $800-$1,200
  • Semi Trucks: $1,500-$2,500
  • Taxis: $3,000-$10,000
  • Passenger vehicles: $800-$1,200
  • One policy limit for all vehicles
  • $1,000,000 + total
  • One policy limit, one vehicle
  • $30,000 +  per vehicle
  • Bodily Injury Liability
  • Property Damage Liability
  • Federal requirements for interstate trucking / transport
  • Bodily Injury Liability
  • Property Damage Liability
  • Personal Use
  • Business Use

Why Is Commercial Auto Insurance Important?

Automobile accidents can be incredibly expensive, and the protection received from commercial auto insurance can be the difference between your business staying open or at having to close down due to an accident. People who are transporting goods are sometimes transporting up to 50,000 or more dollars with of them, and those who are transporting people can have a range of liabilities to them as well. Outside of this, if you are found to be at fault for damaging property or another person’s vehicle, the expenses can be immense. In addition, there are many possible penalties for driving without a valid insurance policy as both a business and an individual. You can avoid these penalties by always being able to produce a valid car insurance plan. There are minimum requirements in each state for auto insurance, and people can choose to get more insurance than the minimum limits. In many cases, this is the best plan, as having too little coverage means you will have to pay the difference out of pocket.

What Does Commercial Auto Insurance Cover?

There are multiple different types of commercial car insurance claims, and you can get unique and customized coverage for your particular situation. What is covered will be partially dependent on what your business is providing. If your business owns, leases, or rents vehicles, you will need to consider commercial auto insurance plans. If your business has employees who drive their own vehicles to conduct business, you should consider a commercial car insurance plan. In addition, businesses that have employees who operate company-owned vehicles or vehicles that are leased or rented by your company, should be looking to commercial auto insurance. These types of insurance policies cover a long range of risks. This includes damage to property, damage to goods, and damage to people, depending on the plan.

Coverage What It Covers First Party or Third Party
Liability Third-party medical, repair costs, and your legal fees when you or your insured driver are at fault Third party
Hired/Nonowned Auto Liability Third-party medical expenses and property damage when using a vehicle not owned by your business Third party
Hired Auto Physical Damage Damage to vehicle used but not owned by the business Third party
Medical Payments Medical expenses for you, your insured driver, and passengers, no matter who is at fault First party
Uninsured/Underinsured Motorist Your medical expenses and vehicle repairs when your in a car accident with a driver who doesn’t have enough insurance First party
Collision Repair costs for your vehicle if damaged in a collision First party
Comprehensive Repair costs for your vehicle if damaged by events other than a collision First party
Roadside Assistance Expenses for roadside assistance required by your vehicle First party

What Isn’t Covered By Commercial Auto Insurance?

There is a difference between personal auto insurance coverage and commercial auto insurance plans. Not all automobile insurance providers cover the same things, so make sure to look over your policy and get any add-ons that will be useful to your business. Commercial auto insurance can pay for expenses related to emergency claims, medical bills, property damage, damage to your vehicle, legal fees, and more. Most states require that business owned vehicles have specific types of insurance. There are some things that are not covered by a commercial automobile insurance policy. This can include things like passenger transportation businesses, vehicles with more than two axles, drivers who are under 18 years of age, and food trucks, among other things. If you are unsure of whether a policy should be purchased for your business, use the tools here, and contact the auto insurance professionals at Fontana Trucking Insurance for more information.

How Much Does Commercial Auto Insurance Cost?

There are many variables that go into the costs of commercial car insurance. This includes the value of the vehicles that are being driven, the experience and driving record of the operators, the state and location a person is living in, whether there are goods in the vehicle, and more. Insurance plans can range between $750 and $3,000 or more per year.

Vehicle Type Typical Premium Range
Commercial Car $600 to $2,400
Delivery or Cargo Van $3,300 to $6,200
Limousine $4,000 to $10,000
Taxi $5,000 to $10,000
Semitruck (Owner-Operator) $8,000 to $12,500

Keep in mind that getting the right plan is essential. Some types of businesses may need additional riders, which are add-ons to plans, or a different insurance policy altogether. If you have any questions, Fontana Trucking Insurance is here for the assist. Comparison-shopping is the best way to save money on commercial automobile insurance. You can compare from multiple companies here to get the best prices for commercial auto insurance available.

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