Why Do We Need Cheap Commercial Auto Insurance?

Here are some of the factors why we need cheap commercial auto insurance. Anyone who drives for a living is covered by commercial auto insurance, including taxicab drivers and pizza delivery people. These people might unable to make a claim under their personal auto policy if they are involved in an accident while driving their own car while on the job. The business where you work must have a commercial policy on the vehicle if you use one of their vehicles. Is commercial auto insurance less expensive than individual protection? What you should know if you’re shopping for a commercial driver policy is listed below.

Why Do We Need Cheap Commercial Auto Insurance?

Cheap commercial auto insurance has many benefits; some of which are below.

comparing the average cost of commercial and personal auto insurance According to statistics, the typical small business owner pays $1704 yearly, or roughly $142 per month, for commercial auto insurance coverage up to $1 million. According to an examination of data from thousands of commercial auto customers across the US, around 44% of these business owners spend less than 1500 dollars for an annual commercial auto insurance premium. Approximately 22% of small company owners spend over $3,000 annually on commercial auto insurance.

Drivers who pose a higher risk are charged more for commercial auto insurance. Drivers pay extra, for instance, if they have a recent commercial license or have been involved in a truck accident, according to the Morgan Company.

According to Nerd Wallet, based on a typical profile view of a driver with good credit and a good driving record, the average personal auto coverage costs roughly $1592 per year or $133 per month. However, much like with commercial insurance, the cost of your premium might vary greatly depending on your driving record. The website provides the following typical yearly policy premium expenses for the following issues:

  • $3144 after being charged with drunk driving
  • $2812 for motorists with inadequate credit scores
  • $2439 following an accident claim for fault

According to the website, these premiums cover comprehensive and collision insurance as well as state-required liability and uninsured motorist protection.

Factors Affecting Commercial Auto Insurance Cost

Based on the type of car, the individual driver’s driving record, and other variables, insurance firms charge dramatically varying premiums for various drivers. However, according to Wallet Hub, the majority of drivers spend more on commercial insurance than they do on personal coverage. That’s because, in contrast to the significantly lower coverage limits for personal plans, commercial policies cover at least $500,000 and up to $1 million in damages.

Cost-related variables for commercial auto insurance include:

  • Whether or not your auto insurance policy has a history of claims
  • The vehicle’s intended use for business purposes
  • Whether someone else will operate the vehicle, as well as their driving record
  • The vehicle’s weight if you operate a commercial truck
  • how much the car originally cost
  • The year, production and model of the car


According to Coverage.com, since claims involving business vehicles are sometimes significantly more expensive than those involving personal automobiles, the greater cost of commercial insurance reflects the higher risk of the insurance provider.

Included Coverage in Commercial Auto Insurance

A commercial auto insurance policy provides medical payments coverage, uninsured and underinsured motorist coverage, comprehensive coverage, collision coverage, and property damage and bodily injury liability coverage, just like your personal auto insurance policy does.

Beyond these policies, however, there are a few coverage options that are only available with commercial auto insurance, such as:

  • During the process of loading or unloading a commercial vehicle, loading and unloading responsibility is responsible for covering the cost of any harm that results.
  • After an accident, equipment and supply coverage will pay to replace any damaged items in your car.
  • Non-owner coverage, which includes drivers besides the owner but also their staff

Commercial Auto Insurance: Who Needs It?

GEICO suggests pondering the following inquiries before determining whether to get your car commercial insurance:

Is the car owned by a partnership, company, or other legal people?

  • Do you use the car for work-related purposes, such as hauling a trailer or carrying tools and equipment?
  • Does your job affect your personal insurance’s liability to increase?
  • Do you carry out services with your car?
  • Do you use your car to deliver goods or pay for people?

If you are saying yes to any of the questions, you should obtain commercial coverage to protect you in the event that an accident occurs while you are at work.

When Should a Commercial Claim Be Filed?

It can be challenging to know when to file a claim under your personal insurance as opposed to your commercial insurance if you utilize your own vehicle for work-related activities. Consider what you were doing at the time of the accident to help you respond to this question.

If you were in an accident while traveling to or from work, or while out for your lunch break, submit a claim with your personal insurance. If an accident occurs while you are working for your employer and doing tasks, commercial insurance will pay the expenses. According to Insure On, if you don’t have a commercial policy, you won’t be protected when driving for work.

Simply put, you must have both commercial and personal auto insurance coverage if you use your own vehicle to deliver people, packages, or anything else for work. While the cost of commercial auto insurance is often higher than that of personal insurance, looking around and comparing quotes from several providers might help you find a bargain.

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