Commercial auto insurance is designed to protect vehicles owned or used by a business for work purposes, meaning the cost of this insurance can vary depending on the vehicles being insured, the industry, size of the business and other factors.
Keeping track of these factors can help you save money on your commercial auto insurance policy.
Your location influences your commercial auto insurance rates for various reasons, including the crime rate in the area and history of storms or natural disasters. If businesses and other drivers around you have filed claims for disasters, you could face higher commercial auto insurance premiums to cover the insurer’s potential losses. A higher crime rate also mean a higher risk of theft and vandalism.
You can offset some of these risks by keeping your commercial vehicles in a covered and secure area.
The nature and cost of the vehicles you are insuring can also affect your commercial auto insurance rates. As you may expect, more expensive vehicles generally cost more to insure. On the other hand, vehicles with higher safety ratings can save you money by reducing the change of theft.
Even if you are not driving the vehicles, your commercial auto insurance policy can still be affected by your driving record—as well as the driving record of those who are driving. This is one of the many reasons it is crucial to vet potential drivers carefully and make sure all are trained on proper driving procedure and what to do in case of an accident.
Not all commercial auto insurance policies are created equal. The more coverage you have, the more you may pay for insurance. This doesn’t necessarily mean that you should drop coverage or choose lower limits, however.
For any vehicle operating on the road, certain car insurance requirements are decided by the state. In Virginia, for example, all vehicles must at least be covered with:
- $25,000 bodily injury liability per person
- $50,000 bodily injury liability per accident
- $20.0000 property damage liability
- $25,000/$50,000 uninsured motorist bodily injury per person/per accident
- $20,000 uninsured motorist property damage
However, these are only minimum requirements and not necessarily how much you should have on your commercial vehicles. It is generally recommended that you carry full coverage commercial auto insurance, which can include comprehensive coverage, collision coverage, liability, medical payments coverage, uninsured/underinsured motorist and more.
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