When driving a vehicle is a central part of your business, you need to have commercial auto insurance. However, this can be an expense that you are not sure that you or the business can handle. The good news is that there are many insurance agencies that offer commercial auto insurance in a variety of plan options and price options to allow you to find one that will fit your needs and budget. What do you have to consider when looking at commercial auto insurance rates?

Insurance Variables

Premium costs for your commercial trucks, vans, cars, or buses are affected by many different factors. While you can look at quotes online, these may not give you an accurate price, as there are many different things that go into a commercial auto quote. Take a look at some of the most common factors that are included:

• Driving records: Underwriting requirements for drivers, especially for drivers who are driving tractor trailers, can be very specific. If you have drivers who have driving violations, this can result in higher premiums or keep you from getting commercial insurance. By hiring drivers with clean driving records, you can keep your commercial vehicle insurance premiums down.
• Vehicle values: Some business owners look at premium rates before adding vehicles to their fleet. Average rates for a particular vehicle can be a big help in your decision making when buying, to enable you to keep your insurance rates down.
• Number of miles driven and the area in which you are driving: The amount that you and your employees drive affects the commercial vehicle insurance premiums. The more miles, the higher the risk of being involved in an accident. If it is a highly congested area, this is also included in the risk formula. All of these factors can be considered in the insurance rate calculation.
• The policy you choose: Purchasing a policy for each vehicle separately can cost you much more than if you insure your vehicles together under one policy. Bundling them together and getting a multi-policy discount can reduce the cost of your premiums.

What Is the Average of Commercial Auto Insurance Rates?

Now that you understand what can affect commercial rates, you may be wondering what kind of rates you should be planning for. Here are some of the average commercial vehicle rates per year.

• Commercial car insurance cost: $1,200 to $2,400
• Commercial truck insurance cost: $800 to $2,000
• Commercial taxi insurance cost: $5,000 to $10,000
• Commercial bus insurance cost: $35,000
• Commercial tractor trailer insurance cost: $2,500+

What Can I Do to Keep My Premiums Under Control?

There are many different ways that a vehicle can be used for a business. From using a truck to deliver supplies to using a company car that travels from one job to another to using a car to take paying customers from one place to another. Commercial vehicle use covers a wide range of purposes and occupations. By evaluating how each of your commercial vehicles is used, you can help your insurance agent determine if you have the right coverage for each vehicle.

An annual review is essential. This will allow your agent to determine if there are discounts that you qualify for, as well as whether your vehicle use has changed and you need to alter your coverage. All of this can save you money and ensure that you are not paying for insurance you do not need. Additionally, it ensures that there are no coverage gaps that could leave you open to liability lawsuits.

Compare Commercial Insurance Rates To Match Your Budget

By comparing commercial auto rates, you can determine which company will meet your needs and your budget. Compare plans and prices to find the option that will be the smart choice to cover your risk and liability.