Colorado Commercial Vehicle Insurance

Your Complete Guide to Colorado Commercial Vehicle Insurance

Find the right commercial vehicle insurance policy.

Accidents happen, especially in the winter when Colorado’s roads are often covered with snow, ice or sleet. From fender benders to major collisions, accidents involving commercial vehicles can be particularly expensive. If you are among Colorado’s business owners who have company-owned vehicles, a commercial auto insurance policy can protect your company’s finances.

An independent agent in Colorado can help you find competitively priced commercial vehicle insurance that is compliant with state and federal laws. Find an insurance agent near you to start comparing customized quotes.

Colorado Commercial Vehicle Crash Statistics

  • There are more than 125,000 vehicle accidents in Colorado every year.
  • Approximately 7% of these collisions involve commercial vehicles.
  • The most common cause of commercial vehicle accidents is a collision with another vehicle.

What Is Commercial Vehicle Insurance?

Commercial vehicle insurance is a specialized car insurance policy designed to cover business-owned vehicles of all sizes and types. If your business owns vehicles, Colorado law requires that these cars, trucks, vans, or buses be covered by commercial vehicle insurance. 

When a commercial motor vehicle is involved in an accident, the company that owns it has a high chance of facing an expensive liability lawsuit. Commercial vehicle insurance is designed to protect your business from large financial losses due to liability lawsuits, property damage, and the potential loss of income that may occur if your business is left without its necessary mode of transportation.

How Much Does Commercial Auto Insurance Cost in CO?

Because there is a wide range of commercial vehicle types, the cost to cover business-owned vehicles can vary significantly from one company to the next. Rates are calculated according to a number of factors including:

  • The number of vehicles you are insuring
  • The types of vehicles you are insuring (car, van, semi-truck, dump truck, bus, etc.)
  • Whether your vehicles will be used to transport people, and if so, each vehicle’s passenger capacity
  • Whether the vehicles will be used to transport hazardous materials
  • Whether the vehicles are used locally or for interstate commerce
  • The driving records of the employees who will be operating the vehicles
  • The amount of coverage you wish to purchase and the size of your deductible
  • Your company’s claims history and safety rating

Obviously, it will cost far more to insure a fleet of semi-trucks used to transport flammable materials than a fleet of delivery cars. Each case is different so the only way to get a good idea of what a policy will cost you is to request a variety of customized commercial vehicle insurance quotes. A local independent insurance agent can obtain these quotes on your behalf.

What Are Commercial Vehicle Coverage Requirements in Colorado?

There are a number of different types of vehicles that can be covered under a commercial vehicle insurance policy. In the state of Colorado, different types of vehicles have different minimum coverage requirements. 

  • Property-carrying vehicles over 10,000 pounds and “for-hire” and engaging in interstate commerce require a minimum of $750,000 in liability insurance.
  • Property-carrying vehicles over 10,00 pounds carrying hazardous materials require a minimum of either $1,000,000 or $5,000,000 in coverage depending on the type of material.
  • Passenger vehicles with a seating capacity of 15 or fewer passengers require a minimum of $1,500,000 in liability coverage.
  • Passenger vehicles with a seating capacity of 16 or more passengers require a minimum of $5,000,000 in liability coverage.

Your local independent insurance agent can be very helpful when you are searching for a policy that is in full compliance with the law.

What Does Colorado Commercial Auto Insurance Cover?

While liability coverage is a required part of your commercial vehicle policy, there are a number of other coverage options that can protect your business finances if one of your vehicles is involved in a collision. You can expect your commercial auto policy to offer the following types of coverage:

  • Liability insurance: This is designed to cover third-party injuries and property damage resulting from an accident in which your driver was at fault. This can also cover your business’s fees for legal representation.
  • Collision insurance: This can compensate your business for damage to your company vehicles that is caused by a collision, regardless of fault.
  • Comprehensive insurance: This can compensate your business for the cost to repair or replace your vehicle if it is lost or damaged due to non-collision hazards such as tornadoes, falling objects, floods, non-collision fires, and theft.
  • Uninsured motorist insurance: This can provide coverage for property damage and medical costs if your commercial vehicle is in an accident caused by an uninsured driver.
  • Roadside assistance insurance: This can provide coverage for towing or assistance if your company vehicle becomes disabled while out on the road. This may be particularly useful for larger vehicles that require specialized towing capacities.
  • Rental car insurance: This can cover the cost of renting a loaner vehicle while your company-owned vehicle is being repaired.
  • Non-owned auto insurance: This is designed to cover the additional liability costs if one of your employees or contractors is in an accident while operating their personal vehicle to carry out company business.

A local independent insurance agent can help you determine which coverage types are right for your Colorado business. Your agent can also help you secure an affordable umbrella insurance policy if you wish to have more liability coverage than your commercial vehicle policy will allow.

Why Work with an Independent Agent in Colorado?

Because these policies can cover everything from economy-sized cars to 18-wheelers, there is no such thing as one-size-fits-all commercial vehicle insurance. Obviously, a business that relies on one or two cars for making local deliveries will have vastly different coverage needs than one that uses large trucks for interstate commerce. A local independent agent can help you find a competitively priced policy that meets all state and federal coverage requirements. 

Contact an insurance agent in Colorado to start comparing a selection of customized commercial vehicle insurance quotes.

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TrustedChoice.com Article | Reviewed by Jeffrey Green

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https://www.colorado.gov/pacific/csp/traffic-safety-statistics

https://www.codot.gov/library/traffic/safety-crash-data/crash-data

https://www.colorado.gov/pacific/csp/mcsap

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https://www.colorado.gov/pacific/sites/default/files/387.7%20Flowchart.pdf

https://www.colorado.gov/pacific/sites/default/files/Passenger%20Carrier%20Minimum%20Financial%20Responsibility%20Requirements.pdf