Best Insurance For Commercial Vehicles
Commercial vehicle insurance is required for vehicles used for business purposes. Read about the best insurance and rates for commercial vehicles below.
Commercial vehicle owners are required by law to carry specific types of insurance coverage on their vehicles. Understanding the differences between personal and commercial automobile insurance and the requirements for your commercial vehicle (or fleet of vehicles) is essential to complying with applicable laws and saving you money alike. Many insurance companies sell commercial insurance today, but which companies are the most reliable and offer the best rates? Continue reading to learn all about the best insurance companies and policy rates for commercial vehicles available today.
What Is Considered a Commercial Vehicle?
Commercial vehicles are categorized by the U.S. federal government based on fuel economy standards, motor vehicle safety standards and motor carrier safety regulations. Motor safety carrier regulations describe a commercial vehicle as a self-propelled or towed vehicle operated on a public highway during interstate commerce for transporting passengers and/or property. The gross weight, passenger transport number and transportation of hazardous materials requiring placards also impact motor safety carrier regulations.
More than fifty federal motor vehicle safety standards are in effect today. These standards cover multiple types of vehicles with numerous variations in purpose and design, including multipurpose passenger vehicles, trucks, commercial buses, school buses, motorcycles, and passenger cars. How do you know if your vehicle (as listed directly above) is subject to one or more federal motor vehicle safety standards? If your vehicle meets the following criteria, you are required to obtain commercial vehicle insurance:
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Passenger vehicles: Motor vehicle other than a motorcycle, multipurpose passenger vehicle or trailer; designed to carry up to ten people.
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Multipurpose passenger vehicle: Designed to carry up to ten people; constructed on a truck chassis designed for sporadic off-road operation.
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Truck: Motor vehicle designed specifically for transport of special-purpose equipment and/or property.
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Motorcycle: When used for business purposes such as deliveries, marketing or in place of a passenger car.
Benefits of Insuring Commercial Vehicles
Carrying commercial vehicle insurance provides multiple benefits for you, your business, and your drivers. Your commercial vehicles need protection against vandalism, theft, and damage from natural disasters. Your vehicles also need protection against medical expenses for your employees and various types of legal fees. Commercial vehicle insurance benefits you by providing all of this and more.
Top Ways Insurance for Commercial Vehicles Saves You Money
Insuring your commercial vehicles requires paying monthly, biannual or annual premiums. Without insurance, however, you and/or your business might be left responsible for paying exorbitant legal and medical fees. Additionally, you might be breaking state and federal laws by not carrying insurance on your business vehicles. This could lead to high fees and restricted (or completely lost) ability to operate your vehicles for business purposes at all.
Cost to Insure a Commercial Vehicle
Prices for commercial vehicle insurance policies vary based on the number and type of commercial vehicles you own in addition to how frequently they are driven. The driving records of you and your employees also impact policy pricing. Coverage types, risks pursuant to your industry, policy limits and the state where your business is located also impact the cost to insure commercial vehicles.
On average, most commercial vehicle owners pay approximately $142 per month or $1,704 per year for commercial vehicle insurance. Forty-four percent of small business owners pay less than $1,500 per year, however. As stated, prices vary based on vehicle type. For example:
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A standard car operated for business reasons might cost as low as $600 or as high as $2,400 per year.
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Commercial vehicle insurance on a limousine might cost anywhere between $4,000 and $10,000 per year.
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Prices for insuring a semi-truck range between approximately $8,000 and $12,500 per year.
Best Commercial Vehicle Insurance Companies (and average prices)
Each commercial vehicle insurance provider offers unique coverage options, base rates, and discounts on premium prices. Progressive, State Farm, Nationwide Acuity and The Hartford are top choices with consumers today. Continue reading below for more information on these companies and their policy pricing (when available).
Progressive
Progressive is one of most popular personal and commercial auto insurance companies in operation today. Coverage is available in all U.S. states for nearly every type of vehicle on the market. Coverage adjustments are permitted at any time during the year. This allows business owners to purchase seasonal policies, which prevents paying for coverage when not needed. Progressive also offers a multitude of policy discounts to qualified customers. Discounts include package discounts, paid-in-full discounts, prior insurance savings and bundle discounts (when combining commercial and personal vehicle coverage into one policy). The national average price for commercial vehicle insurance with Progressive is reported to be approximately $187 per year. Exact pricing is available through private/direct quote only.
State Farm
State Farm insurance is also available in every U.S. state plus Washington D.C. This company consistently receives excellent customer satisfaction and financial strength ratings, which is only part of what contributes to State Farm’s popularity with business owners today. Liability, medical payments, collision and comprehensive are all offered. Employers' non-owned car liability (ENOL) and rideshare coverage are also available through State Farm. State Farm does not provide an online quote tool, however, and all customers are required to contact a State Farm agent to discuss pricing policy terms. No official price ranges are available for State Farm commercial vehicle insurance policies without a quote. State Farm personal auto insurance prices are typically slightly below the national average, however, and commercial policy pricing is expected to be similar. Applicable commercial policy discounts offered by State Farm include:
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Bundling (insure multiple vehicles for lower prices).
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Accident-free (no at-fault accidents within three years awards you with lower prices).
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Drive Safe & Save (safe driving habits earn up to thirty percent discounts for participating policyholders).