Commercial vehicle insurance is meant to provide coverage for business owners and their employees while utilizing business vehicles. This may include insurance for commercial drivers, and business owners that have employees make deliveries or provide transportation, like pizza delivery or a senior shuttle service.

Many states will require companies that use a vehicle for their business to carry a specific limit of commercial liability. Whether your state does or not, you should consider cheap commercial vehicle insurance to protect your business or private assets if there is an auto accident and you or your employee is found to be at fault.

Commercial Vehicle Insurance is typically used to insure the following types of vehicles when they are used for business purposes:

  • Passenger car, bus, or van
  • Mini, cargo, or delivery van
  • Trucks – pickup, box, or straight truck, agricultural truck, fifth wheel truck, semi-truck, flatbed truck, car carrier, tow truck, refrigerated truck, garbage truck
  • Catering truck or van, ice cream truck
  • Cement mixer
  • Hearse
  • Motor home used for commercial purposes
  • Limousine
  • Sport utility vehicle or SUV
  • Wheelchair enabled bus or van

Make sure to enquire if there are policy limits or exclusions depending on the vehicle type. Some insurance companies will only offer physical damage coverage for vehicles like garbage trucks. It is important to understand the type and amount of coverage available for each of the commercial vehicles, prior to purchasing the business’s auto insurance policy.

What Is Covered?

Commercial vehicle insurance typically includes liability insurance, collision and comprehensive coverage, and underinsured or uninsured motorist coverage. Commercial drivers need to check and see what insurance the company carries so they can figure out if they should buy additional insurance.

Often companies or professional drivers will want to buy more liability insurance than the required minimum because often if there is a serious accident the minimum liability insurance won’t cover all repair and medical expenses. If the insurance policy doesn’t cover all the damage caused, than the rest will have to be paid by the driver or the company.

Insurance companies will help you determine the amount of liability insurance needed to cover the type of business you have and how much and what kind of driving you do. Often insurance professionals will recommend increasing your liability coverage.

Commercial Insurance Rates

Many different factors will go into determining the rate you pay for your commercial insurance coverage. You many qualify for discounts based on personal auto policies, for having a clean driving record, or buy combining multiple vehicles in one policy. Compare commercial vehicle insurance rates online here.

This online comparison tool while allow you to check rates by state. You will need to know the type of business entity your company is, for instance sole-proprietorship or what type of corporation. You will also need to know the number of years you’ve been in business, how many owners, part and full time employees, and sub-contractors you have that might drive company vehicles, and have contact information.

Eventually you will need to provide the age and personal drivers license number of all drivers, the type of drivers license each driver has, the vehicle makes and models as well as the Vehicle identification numbers or VIN numbers for all vehicles, the type of cargo carried or number of passengers each vehicle transports, and the annual mileage each vehicle is driven.

Insurance agents then figure out the risks for covering your commercial vehicles and give you a quote on the cost of the insurance policy.

The Insurance Department in your state can make recommendations for commercial insurance or you can talk to your personal auto insurance provider and get a quote for coverage that may include a multi-policy discount.

Drivers Make a Difference

The age, type of drivers’ license, and driving record of all drivers will make a difference in the price of your insurance policy. The insurance company will actually determine the risk of each driven and some will offer a discounted rate for those drivers who have a clean driving history and/or a commercial driver’s license.

Vehicles Make a Difference

Another thing that will make a difference in the cost of you commercial vehicle insurance is the make, model, and year of the vehicles you are insuring. Just as with personal insurance, if you haven’t already purchased your vehicles you may want to find out which models have lower insurance costs due to their safety rating. If the vehicles have added safety features, such as anti-theft devices, make sure that your insurance company has this information.

Other Information

If you have current insurance and are getting a competitive quote, make sure to provide the companies who are quoting insurance a copy of the declarations page from your existing policy or policies. If your company is a sole-proprietorship, offering the declarations page of your personal insurance coverage showing consistent coverage may save you money. The more information you provide, the more you may be able to save when you get cheap commercial vehicle insurance.