Birmingham Commercial Vehicle Insurance

Your Complete Guide to Birmingham, AL, Commercial Vehicle Insurance

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Commercial Vehicle Insurance

Birmingham, AL, is a large city with roughly 210,710 residents calling it home. There have been 2,955,000 commercial truck registrations in the state alone. If you're operating a business in Birmingham, AL, that uses commercial vehicles, you'll need business insurance that fits.

An independent insurance agent can help get you started with a commercial vehicle policy. There are Alabama and federal guidelines that need to be followed with proper insurance. Connect with a local expert for quotes.

Why Do Birmingham, AL, Businesses Need Commercial Vehicle Insurance?

If you own vehicles used for business purposes, you're required to carry commercial vehicle insurance. There is a lot that can go wrong on the Birmingham roadways, and protection is key. The Alabama Highway Safety Office has a drive safe initiative to help drivers become aware. According to their reports, these are some statistics for Alabama.

  • In Alabama, almost 56% of road fatalities did not wear seat belts.
  • 49% of all Alabama road fatalities occurred at night, including dusk and dawn.
  • In Alabama, most fatal crashes occur on a Saturday.
  • Friday is when most accidents occur in Alabama.
  • A road accident in Alabama occurs every 197 seconds.

Commercial vehicle insurance is meant to help pay for a lawsuit arising out of liability or physical damage loss. It will cover expenses like medical payments and damaged vehicles. Review your policy for accuracy with a professional.

How Much Does Commercial Vehicle Insurance Cost in Birmingham, AL?

Every business policy is rated differently. Commercial vehicle insurance in Birmingham, AL, will use a variety of items to set a premium. Check out the risk factors that carriers use to determine your pricing:

  • Year, make, and model of all vehicles
  • The radius in which you travel
  • The number of drivers and their motor vehicle records
  • What the vehicles are used for
  • The coverage you choose
  • Where you store the vehicles
  • What safety measures you have in place
  • The time of day or night these vehicles are driven

Carriers will use things like the number of accidents in an area to calculate costs as well. Alabama is the third-largest contributor to fatal commercial truck accidents. That number will play a role in the insurance company's pricing.

What Are the Commercial Vehicle Coverage Requirements in Birmingham, AL?

Birmingham, AL, requires every driver to carry commercial vehicle insurance. Liability is set at minimum limits and mandated by state and federal regulations. Heavy trucks and tractors will have to follow the Department of Transportation (DOT) guidelines.

Alabama's minimum liability requirements for commercial vehicles

  • $25,000 property damage liability per accident
  • $50,000 bodily injury liability per accident
  • $25,000 bodily injury liability per person

Alabama's DOT minimum liability requirements for oversized vehicles / loads

  • $100,000 bodily injury liability per person
  • $300,000 bodily injury liability per accident
  • $300.000 property damage liability per accident
  • $1,000,000 if a combined single limit policy

In one year, there have been 173 road fatalities caused by heavy and tractor-trailer truck drivers alone. If your drivers are carrying materials, it will need to be accounted for with the DOT and insurance company. To get the right commercial auto policy coverages, check Alabama state guidelines.

What Else Does Birmingham, AL, Commercial Vehicle Insurance Cover?

Your commercial vehicle policy in Birmingham will come with liability insurance, and that's pretty much it. With 20% of commercial fleet vehicles involved in an accident each year, you may want more coverage. Take a look at the optional coverages below:

Comprehensive insurance: This covers the cost to repair or replace your commercial vehicle if it is lost or damaged due to a non-collision accident.

Collision insurance: This will replace or repair your commercial auto that is damaged due to an accident.

Rental car insurance: This covers the cost of renting a commercial vehicle while your company-owned auto is being repaired.

Towing and roadside assistance: This will pay for a tow to pick up your disabled commercial auto. 

Non-owned or hired auto liability insurance: If an employee or contractor uses a non-company-owned vehicle while doing business on your behalf, this will cover your exposure.

Uninsured motorist insurance:  If your commercial auto is involved in an accident with an uninsured driver, this provides coverage for property damage and medical costs.

Why Work with an Independent Agent in Birmingham, AL?

Commercial vehicle insurance in Birmingham, AL, is necessary and mandatory. Since you'll need to meet specific state and federal criteria, consider using a professional. An independent insurance agent can help.

They are knowledgeable resources when it comes to meeting insurance regulated coverages. An independent agent has access to several carriers at no cost to your business. Get connected with a local adviser on TrustedChoice.com for tailored commercial auto quotes.

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TrustedChoice.com Article | Reviewed by Jeffrey Green

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