Small Business Brief


How Much Does Commercial Car Insurance Cost on Average?

Your business might not be an Uber or Lyft, but if your employees have to drive, you need to cover them. Auto insurance is a must.

Before you jump on the first policy in the search, consider commercial car insurance cost.

Commercial auto insurance protects essential equipment that belongs to your business. If you run a catering business and the driver gets into a wreck, the insurance covers all your tools. This type of insurance also protects your driver.

Business cringe when they consider this type of insurance because they think they’re getting stiffed for the drivers. But no, commercial auto insurance protects your employees, especially in at-fault accidents.

Are you wondering how to handle the commercial car insurance cost for your company? If yes, check out our smart guide here on the average prices.

What Is Commercial Auto Insurance

Whether you have cars, trucks, or vans on the road, commercial auto insurance covers them all. 

Like most policies, this type of insurance breaks down into parts — liability, physical damage, and other coverage. 

Liability Coverage Insurance has to do with property damage or bodily injury to any and all drivers. That’s all-inclusive coverage, covering uninsured motorists and underinsured motorists.

Physical Damage Insurance is your comprehensive and collision coverage of the policy. 

Other Coverage includes car rental reimbursement, medical installments, and towing and labor. It also covers auto loans and car lease gap payments. 

This is what you need to consider when making an informed choice about this insurance. 

Does Your Business Need Commerical Auto Insurance?

Before you sign a weighty insurance contract, determine if your type of business needs it. Answer the following questions:

  • Does my business own vehicles?
  • Do my employees use their vehicles while conducting company business? 

If you answered yes to any of these questions, you need a policy. Depending on the number of cars you have on the road, you might get away with small liability coverage. In this case, you’d pay less for your premium but always err on the safe side. 

Go with full coverage if you’re ever unsure. Better yet, speak with a professional to understand coverages. 

How Much Does Commercial Car Insurance Cost on Average?

There’s no set average for commercial car insurance. Different factors affect your premium. For example:

  • Car Value – this includes the vehicle’s make, model, and year.
  • Travel Distance – will this be for local travel or business across The States.
  • Total Number of Vehicles and Drivers on the Road – more cars and drivers, more money.
  • Coverage Type, Deductibles, and Limits

Other considerable things like credit history and medical endowments factor in as well. 

Expect to pay as less $600 upwards to $2,500 per vehicle. 

Get Insured

No more wondering how to take care of the commercial car insurance cost for your business. Log your company’s needs and speak with an insurance professional to get the best quote. 

Want more smart business advice like this? Check out our small business brief for up-to-date business tips to end 2020 strong.