In the United States, there are over 8 million commercial vehicles on the road.
From standard automobiles to trucks they are everywhere. If you’re in business and need a commercial vehicle, you have probably asked yourself, what does commercial car insurance cost?
Commercial Car Insurance Cost
As with all insurance, commercial car insurance cost is determined by a wide variety of factors. The national average for commercial car insurance is estimated to be $1,592 per year. While this is a nice starting point, there are still considerations that will enable you to have a more precise picture of what to expect.
Also, remember that this is specifically speaking about car insurance. If you’re interested in commercial truck insurance it will be a bit more. Trucks are almost always more expensive than cars, for a whole host of reasons from danger to others to the cost of repairs and parts being greater.
Key Factors For Commercial Car Insurance
When determining how much your commercial insurance will cost, insurance companies look at a variety of factors. The key is that the more risk and the more expensive a vehicle is, the more expensive it will be to cover. Let’s start off by taking a look at risk factors.
Time Spent On The Road
The more a vehicle is used, the greater the chances of a wreck are. If you are constantly traveling in your commercial vehicle, then you have a much higher possibility of having an automobile accident. It is a sad but simple fact that driving is dangerous, and there are irresponsible drivers out there.
Type of Job Or Worksite
This is of particular importance when dealing with the construction and other heavy industries. If you’re going to be driving on job sites or mines the chances of damage occurring to your vehicle is higher. This will make the cost of your insurance go up, because of the risk exposure.
Driving Record
An insurance company doesn’t have a lot to go off of when you insure a vehicle through them. One of the best indicators they can look at for safety is the driving records of those who are going to be operating the vehicle. This means if you or an employee have accidents, DUIs, or other traffic mishaps, the cost will increase.
Other Factors To Consider
Not every factor that impacts car insurance has to do with the risk of an accident or repair. Some of the largest factors have nothing to do with risk. These are considerations that you need to make no matter where you live, or what kind of work you are engaged in.
The State You Insure In
Due to a variety of state laws and other considerations, not all states are equal when it comes to insurance. For instance, Maine is known to have the cheapest full coverage. The reason for this breaks down simply to the local laws and regulations that govern insurance.
For the most part, a state that has a lot of traffic, or more population, will have a higher rate of insurance. That isn’t always the case, with some low population states like Kansas having fairly high base insurance premiums. Research your state to find out more.
How Much Coverage You Need
The amount of coverage you select will be one of the main indicators of cost. It is fairly standard for commercial insurance to cover a great deal, close to or above $1 million dollars. This is because of the liability to your business should you find yourself in an at-fault accident.
It is also because the insurance company will have to pay out more depending on what has happened. This becomes very important when you have full coverage and are also insured against medical expenses. We all know how expensive going to the hospital can be.
The various levels of coverage also apply to this. Depending on what levels you set your deductible and liability will increase or decrease the average cost. Make sure you get coverage that fulfills your needs without breaking your bank but doesn’t skimp on coverage.
The Vehicle That Is Covered
Not all vehicles are equal, some are simply more expensive than others. For the most part, the more expensive and new the vehicle is, the more expensive the insurance will be. This is because repairing a new vehicle can cost considerably more than an older vehicle.
This is not always set in stone, and most businesses prefer to have newer vehicles because of other costs. It is important to remember that newer vehicles are almost always safer and more reliable than older ones. Some of these differences can even save you money, though the overall cost is still higher on average.
Your Insurance Cost
Now that we have many of the factors out there for your consideration you should start to get an idea of the expense you can expect. Choosing the right vehicle and the insurance company is going to be your main input in controlling the cost of your insurance. Research every aspect of your commercial car insurance cost or speak to a professional who can help.
Have Confidence In Your Insurance
The most important aspect of insurance is that it provides you with what you need. This provision comes in many forms, from the peace of mind to liability protection. It is important to the success of any business to save money where possible, so don’t forget to shop around.
If you’re in the Raleigh or Durham area of North Carolina, then Amistad Insurance Services are ready to help. We can provide you with effective and low-cost commercial auto insurance. We have been helping both residents and businesses and are available 24 hours a day to help you.
The only way to truly know how much commercial car insurance costs are to compare commercial car insurance quotes. If you have any questions or concerns, feel free to contact us, we look forward to answering your questions and concerns. Let us help you get the car coverage that works best for your business.
