Cost Of Commercial Auto Insurance

What Is Umbrella Insurance

How Much Does Commercial Auto Insurance Cost?


An umbrella policy sits on top of an existing liability policy and kicks in when the limit of that policy has been reached. The umbrella policy provides an added measure of protectionup to its limitto coverage like general liability insurance, professional liability insurance, or commercial auto insurance. For example, if you are required to pay a $125,000 claim but the underlying policy that covers the incident has a $100,000 limit, an umbrella policy can cover the additional $25,000. You must tell your insurance company about your liability policies for the coverage to respond.

Types Of Commercial Auto Coverage

Commercial auto coverage protects your business from the cost of damage and medical expenses after an auto accident . It also includes third-party coverage, often called liability, which pays for property damages and medical expenses for other involved parties if someone insured under your commercial policy causes an accident.

Collision coverage, a form of first-party insurance, covers the cost of repairing your commercial vehicle after an accident regardless of fault. The other main first-party policy is comprehensive coverage, which pays for damage to your commercial vehicle or fleet caused by non-accident incidents, such as theft, vandalism, or extreme weather.

Other types of commercial auto insurance coverage include:

  • Non-owner or hired liability, which covers third-party property damages and bodily injury expenses when a covered person causes an accident in a vehicle your business hired or rented.
  • Hired physical auto damages coverage, which pays the cost of damage to a covered hired or rented vehicle in an accident regardless of fault.
  • Medical payments insurance, which pays for medical bills for your drivers and passengers after an accident regardless of fault.
  • Uninsured and underinsured motorist insurance, which pays for property damage and medical costs if you have an accident with an uninsured or underinsured driver.
  • Roadside assistance coverage pays for towing, gas, tire changes, and other mechanical needs if your staff gets stranded.

Will Commercial Auto Insurance Cover A Vehicle Used For Personal Business

Most insurers will allow an owner or employee to use an insured vehicle for personal use if the coverage is requested and proper disclosure is made on the application. The cost for providing coverage for regular personal use is typically an additional $50 per year. In almost every case, the insurance carrier will require every person with access to a business vehicle to be listed as a driver on the policy.

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Biberk Makes Getting Great Coverage Convenient

Forget the traditional insurance model. We make it easy to get top-tier, cost-effective insurance for your small business. You can sign up for general liability insurance and manage it entirely online, or you can speak with one of our licensed insurance experts for help choosing the coverage thats right for you. Youre the boss, after all. Plus, we sell directly to you, so youll pay up to 20% less compared to other companies. Its savings and protection all in one.

Average Cost Of Commercial Auto Insurance

These are the Average Car Insurance Premiums in Canada

Craig Casazza Finance

This article was reviewed for factual accuracy by Brian Halbert CFP

Commercial car insurance is a special policy that is usually required if you own a business vehicle or if you frequently use your car for company purposes. It is designed to cover all expenses, damages, and injuries caused by an accident during working hours or while running a business. Auto insurance policies are generally grouped into three types: collision, liability, and comprehensive.

The cost of a commercial auto insurance policy may vary depending on how often your business uses your vehicle, the make and model of your vehicle, and the size of your fleet. In this guide we discuss the average cost of commercial auto insurance.


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Find Commercial Vehicle Insurance Rates To Match Your Budget

A local independent agent in our network who specializes in business insurance can help you find a commercial auto insurance policy at a cost that matches your budget.

Member agents in this network partner with several different insurance companies, and can help you to compare options and prices and make an informed choice.

Your commercial insurance agent can answer any of your questions and work with you to protect your property and your employees. Contact an agent now, and get the support you need to find the right commercial vehicle insurance rates for your business.

What If Im A Contractor Or I Operate My Business Out Of My Home

You could still benefit from general liability insurance as a freelancer, contractor, or home business owner because you face many of the same risks as brick-and-mortar businesses. General liability insurance can be important to your small business because:

It Provides Financial Protection

Freelancers, contractors, and home business owners can be sued for damaging client property or causing injury. A general liability policy covers related costs.

It May be Required by Law

State and federal law requires general liability insurance for independent contractors in certain industries such as construction.

Clients Require Insurance

Some companies require that contractors and freelancers have insurance because it protects the company from financial loss due to their actions.

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Comprehensive Physical Damage Coverage

This coverage pays for damage to or replacement of your car from theft, vandalism, flood, fire, and other covered perils. If your companys car still has a loan on it, lenders usually require you to have comprehensive damage coverage since they want to make sure if anything happens to the car, its value has to be protected.

Landlord Commercial Property Insurance

How to Reduce Commercial Auto Insurance Premiums

As a landlord, you want to protect your commercial property and your income from potential risks. Landlord commercial property insurance can help by providing coverage for your building and contents in the event of a covered loss, such as fire, wind damage, or theft. It can also help cover your expenses if you have to temporarily relocate your tenants due to a covered loss.

When youre going through a lawsuit or dealing with a disaster, such as a fire, youre going to be in a financial bind. Your commercial property insurance will help you recover from property damage by providing funds. You are covered by general liability insurance if your company is found liable for bodily injury, property damage, or personal injury arising from the third party. Rent paid by your tenants is the primary source of income for a commercial landlord. If there was a major disaster, you might not be able to collect payment. You may be able to recover rental income that was lost due to a business interruption policy. Your legal fees, settlements, and judgments against your company may be covered if you have Errors and Omissions insurance.

You can add hired and non-owned auto insurance to your commercial auto insurance policy or buy it separately. Higher-risk businesses will pay more than lower-risk businesses. There are numerous insurance companies that provide varying ratings for risk, so it is worthwhile comparing pricing among them.

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What Determines The Cost Of Commercial Auto Insurance

Numerous factors influence the cost of commercial auto coverage. Some of the most important factors include:

  • Type of business and the use of the vehicle: A salesperson will generally have lower premiums than a delivery driver.
  • Type of auto: Large and specialty vehicles such as box trucks have higher premiums compared with small vehicles such as sedans.
  • Types of coverage: In addition to the core coverages of liability, collision, and comprehensive, other coverages are available and add to the premium costs.
  • Amount of coverage: Many small businesses commonly choose $1 million in liability coverage, but each business has different risk profiles. The higher the coverage, the higher the premiums will generally be.
  • Claims history: Businesses with a history of claims will pay higher premiums.
  • Miles driven: The more miles that are driven, the higher the premium will be.
  • Parking location: The location of the business will influence the premium based upon the number of crashes in that area as well as the prevalence of car theft, vandalism, and natural disasters.
  • Type of cargo: Companies carrying hazardous goods may pay higher insurance premiums to account for the added risk.
  • Businesses with good credit histories will pay lower premiums.
  • Driving history of drivers: Businesses that hire drivers with clean driving records will pay lower premiums for their commercial auto insurance.

What Does A Business Umbrella Policy Not Cover

A business umbrella policy provides coverage for any incident that a liability policy doesnt specifically exclude. However, as with any insurance policy, there are certain exclusions when it comes to an umbrella insurance policy, such as:

Intentional damage

Damage that you cause on purpose or that can reasonably be expected to result from your actions isnt covered.

Damage to your property

If youre held liable for damaging someone elses property, umbrella coverage may apply, but not when it is your own property.

Contractual Liability

If you agree in a contract to take on liability, its not covered by your umbrella policy.

Liability associated with armed conflicts or war.

Costs associated with these types of events arent covered by umbrella insurance.

These are just a few examples of umbrella insurance exclusions. If you have any further questions or concerns, our insurance experts can provide more details on the coverages and exclusions of a business umbrella policy.

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Commercial Auto Insurance Vs Personal Auto Insurance

One of the most common questions about auto insurance is, I have personal coverage on my car. Will this cover me if I am driving somewhere for work? The problematic answer to that question is…maybe.

If you drive your personal car minimally for business , then your personal auto insurance may be enough coverage for you. Some personal auto policies have an optional election that allows for some business driving in the car. You should speak with your personal insurance agent to verify this before taking any chances.

If you drive your personal car a majority of the time for business purposes, then you will definitely need commercial auto insurance. Other reasons that will instantly require you to carry commercial auto are:

  • Make Deliveries– If you are in an accident while delivering goods for your business, your personal auto insurance will probably deny your claim.
  • Transporting– Using your vehicle to pick up or deliver a client of the business is considered business use. Commercial auto insurance would be needed to make sure your company is protected from any liability.
  • Ridesharing– Driving for services like Uber or Lyft will often cause your personal insurance company to cancel your policy and deny any claim stemming from this business use. A commercial auto policy is absolutely needed to operate a ridesharing business with your personal vehicle.

Additional Business Insurance For Vehicles

Does Car Insurance Cost More For Business Use

Some business owners may think commercial auto insurance covers all of their operations when they need additional policies to be fully protected. For example, an auto repair shop typically needs commercial auto coverage plus specific add-ons for their towing service like liability coverage for customers cars when towed or stored at the garage.

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What Are Some Of The Future Risks Associated With Rising Vehicle Insurance Costs

Weather-related property claims – A recent report in the insurance publication National Underwriter noted that commercial auto insurers say that the increasing frequency of large hurricanes, floods, hailstorms and wildfires are leading to higher auto physical damage claims. The number of property claims has been steadily increasing in the past decade as both the frequency and severity of major weather events grow.

Lack of experienced drivers – As the economy expands, it’s become more difficult to find experienced drivers. Many experienced commercial drivers are retiring, and there are not enough job candidates with the skills and expertise needed to drive commercial vehicles. The American Trucking Associations estimates that the industry is understaffed by more than 50,000 drivers, and this could increase more than threefold within eight years if current trends continue.

Security with onboard systems – As more vehicle functions become automated, new risks could surface from system failures that may result in accidents. There are number of technologies that come into play in new vehicles and a highly automated vehicle will rely on array of devices, including radar, light detection and ranging, cameras, graphics-processing units and central processing units.

Hire Us For The Best Auto And Home Insurance:

When you are looking for Auto and Home Insurance Richmond Hill, the most crucial consideration is a right and reliable service provider who can offer exactly what you deserve. As a huge number of insurance brokers available in the market, you can take any wrong step to find the best one. In fact, your hired insurance broker should give tailor-made solutions according to your specification.

In that context, the Marathon Insurance group is always there to help you. We will give you the exact information regarding multiple policies of Auto and Home Insurance Richmond Hill so that you will be confirmed that which one to take. We have decades of experience that ensures you have chosen the right option and the best possible coverage for your family.

Our professional insurance agent will make you accurate about every the coverage and deductibles that best suits your need to the optimum. You can also inquire about anything online or by phone you might have.

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Commercial Auto Insurance Companies

Getting the right commercial auto insurance can be challenging if this is your first time. There are several options, and picking the best can sometimes be confusing. However, you dont have to go through all that stress.

We have done all the work for you in advance. We have a list of the best commercial auto insurance companies you can use.

What To Watch Out For

How Much Does Commercial Insurance Cost For Cargo Van Courier Business ($1,000,000 & $100k Cargo)

Commercial car insurance is a great way to protect your employees and vehicles, but there are still a few things to watch out for.

  • Exclusions. Like most insurance policies, your commercial car insurance policy may have exclusions. This may include intentional damage, improperly licensed drivers, specific driving activities or areas.
  • Coverage for non-employees and hired vehicles. Unless you purchase the add on, you might not have coverage when driving vehicles not owned by your company.
  • Equipment. Some policies may not cover equipment inside or on your vehicles.
  • Cargo. Find out if cargo is covered by a standard commercial car insurance policy or if you need additional cargo coverage.
  • Coverage limits. Coverage limits vary, so make sure your policy meets state and industry minimums.
  • Rideshare. Coverage for rideshare vehicles is different than for fleets and other hired vehicles, so discuss your coverage needs with your provider.
  • License status. Ensure that all drivers have the right license status and that their license is up to date, otherwise you may be denied coverage.

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Additional Steps To Protect Your Business

Although its easy to invest in business insurance, it shouldnt be your only defense.

Here are several things you can do to better protect your auto body shop:

  • Use legally robust contracts and other business documents.
  • Set up an LLC or corporation to protect your personal assets.
  • Stay up to date with business licensing.

Top Commercial Auto Insurance Companies

CoverWallet Small business owners who want to compare quotes from top carriers

While financial strength is always a consideration when picking a carrier, you also want to look at the services that the top commercial auto insurance companies offer. Risk management resources and 24/7 claims processing can make your life easier. Our list includes insurers that promise excellent service with quality coverage, plus brokers that can give you access to more carriers.

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Commercial Vehicle Insurance Costs By Vehicle Type

Vehicle Type
Semitruck $8,000 to $12,500

Most small business owners insure one car, which is why the typical annual premium is $1,200 or less. However, other factors can influence the cost. For example, truck drivers face greater risk because they drive more and have more costly accidents, so owner-operators working under their own authority may pay up to $12,500 per year.

The primary factors that determine commercial vehicle insurance costs include:

Because of the number of factors impacting commercial auto insurance costs, business owners should try to understand which factors relate to their situations and how those factors may affect their bottom line.

Why Biberk For Business Owners Insurance

Things to Consider when Buying a Car Insurance.

Were the experts when it comes to business owners insurance for small businesses.

Save Time

Get a quote entirely online or speak with one of our insurance experts right away for help getting a quote, buying a policy, or answering any questions you may have.

Save Money

We insure your small business directly, without a middleman or insurance broker, so we pass that savings along to you – up to 20% less than policies with other insurance companies.


We’re part of Warren Buffett’s Berkshire Hathaway Insurance Group with millions of satisfied customers, more than 75 years of insurance experience, and $38 billion in paid claims in 2020.

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What Is General Liability Insurance

If you want to ensure that your small business has financial protection from unforeseen claims, general liability insurance is a smart investment. While its not always required by law, it may be required by certain contracts or lease arrangements. With a general liability policy from biBERK, its easy to get protection from the costs of:

Property Damage

When customer property is damaged by an employee, your coverage may pay for a replacement. For example: Your contractor accidentally sets fire to a building they are working in, and repair costs will exceed $150,000. Now, you may be liable to pay for the damages and construction costs. With small business general liability insurance from biBERK, you would likely have help covering the costs of those damages.

Bodily Injury

If someone other than an employee is injured on your property, this coverage can take care of medical expenses plus legal expenses and damages.

Product Liability

If products developed or sold by your business harm people or property, this coverage can pay legal expenses associated with product liability lawsuits and medical expenses if an injury occurs.

Libel, Slander, and Copyright

This coverage can pay for lawsuit expenses from personal and advertising injury. Advertising injury can include disparaging another business in your advertisements, stealing an advertising idea, and more.

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