Lexington Commercial Auto Insurance

Your Complete Guide to Lexington, KY Commercial Auto Insurance

Find the right commercial auto insurance policy for you.

From cars used to deliver pizza to students at the University of Kentucky to semi-trucks making their way out of town on I-75, commercial vehicles are abundant on the streets of Lexington. If you are a local business owner who has company-owned vehicles, you will want to be sure you have the right commercial auto insurance policy. An independent insurance agent can help you find competitively priced coverage that is compliant with all state and federal laws. Find an insurance agent in or near Lexington to learn more about your options when it comes to commercial vehicle insurance.

Why Do Lexington Businesses Need Commercial Vehicle Insurance?

Commercial autos are any vehicles that are owned and operated by a business. This can include delivery cars, cargo vans, pickup trucks, 18-wheelers, dump trucks,  buses and more. This insurance is important because, unfortunately, accidents sometimes happen, even to the best drivers.

Lexington, KY Crash Statistics

  • There is an average of 102,600 collisions in Kentucky every year.
  • Approximately 8,500 of these collisions involve trucks weighing 10,000 lbs or more.
  • An average of 13,038 crashes occurs in the city of Lexington per year.
  • Lexington has an annual crash rate of 44 crashes per 1,000 residents.

When a commercial vehicle is involved in a collision, the business that owns it may be subjected to large financial losses if it is not covered by sufficient insurance. These losses can be the result of expensive liability lawsuits, extensive property damage, or loss of income due to the company not having access to a necessary vehicle. Commercial vehicle insurance is designed to cover your business against these risks so that your company’s finances are well-protected. 

How Much Does Commercial Vehicle Insurance Cost in Lexington, KY?

Commercial vehicle insurance costs can vary significantly from one business to the next. This is because insurance companies assess risk and calculate rates according to a variety of unique factors. Your price for coverage may be influenced by such things as: 

  • The number and types of vehicles your business is insuring
  • Each vehicle’s year, make, model and safety features
  • Each vehicle’s passenger capacity if used for transporting people
  • Whether your vehicles will be used to transport hazardous materials
  • The estimated number of miles your vehicles will be driven annually
  • Details about the employees who will be operating the vehicles
  • The amount of coverage you wish to purchase and the size of your deductible

Because each insurance company has its own method for determining costs, it pays to compare rates before purchasing a policy. That way you can be sure you are getting the coverage you need at a competitive price.

How Much Commercial Vehicle Insurance Does My Lexington Business Need?

In Kentucky, all commercial vehicle policies must include liability coverage, which is designed to provide coverage for third-party injuries and property damage if your driver is responsible for a vehicle collision. In Kentucky, the minimum liability coverage requirements for commercial vehicles are assigned according to the vehicle’s weight and purpose. 

Minimum Coverage Requirements for KY Commercial Vehicles

  • Passenger carriers with a 1 to 7 passenger capacity: Bodily injury liability coverage of $100,000 per person, $300,000 per accident; property damage liability coverage of $50,000 per accident
  • Passenger carriers with an 8 or more passenger capacity: Bodily injury liability coverage of $100,000 per person, $600,000 per accident; property damage liability coverage of $50,000 per accident
  • Property carriers with gross vehicle weight of 18,000 lbs or less: Bodily injury liability coverage of $100,000 per person, $300,000 per accident; property damage liability coverage of $50,000 per accident
  • Property carriers with gross vehicle weight of more than 18,000 lbs: Bodily injury liability coverage of $100,000 per person, $600,000 per accident; property damage liability coverage of $50,000 per accident
  • Motor carriers of petroleum or petroleum products under 10,000 lbs: Bodily injury liability coverage of $100,000 per person, $300,000 per accident; property damage liability coverage of $50,000 per accident
  • Motor carriers of all other hazardous materials: $1 million in combined single-limit coverage

A local independent insurance agent can help you be certain that you are purchasing a competitively priced commercial vehicle insurance policy that meets the state’s coverage requirements.

What Does Lexington Commercial Auto Insurance Cover?

All commercial vehicle insurance policies in Lexington must include liability coverage that meets or exceeds the state’s requirements. In addition to this mandatory coverage, insurance companies also offer several other types of coverage that may either be included as standard in their policies or offered as optional coverage. 

  • Collision and comprehensive insurance: This is designed to cover damage to your company vehicle. Collision insurance covers collision-related damage, while comprehensive insurance covers non-collision-related damage.
  • Uninsured motorist insurance: This can cover your employee’s medical expenses and your vehicle’s damage if an uninsured, underinsured, or hit-and-run driver causes a collision with your company vehicle.
  • Towing and roadside assistance insurance: This can cover the cost of a service call if your company vehicle experiences problems while out on the road.
  • Rental reimbursement insurance: This can cover the cost of renting a comparable vehicle while repairs to your vehicle are made. It enables your business to continue normal operations without sustaining a large financial loss.
  • Gap insurance: This insurance is designed to bridge the coverage gap if your company vehicle is totaled and its assessed value is lower than the amount you still owe on it.
  • Non-owner auto insurance: This is necessary only if you have employees doing work for your business while driving vehicles that your business does not own. It protects your company by ensuring that you have sufficient liability coverage in the event of an accident.  

Additionally, some businesses may want to consider purchasing an umbrella insurance policy. This is a stand-alone supplementary policy that provides additional liability coverage. It picks up where your standard commercial vehicle insurance policy leaves off. Your local independent insurance agent can help you determine which coverage types may be beneficial to your Lexington business.

Why Work with an Independent Insurance Agent in Lexington?

Looking for the right commercial vehicle insurance coverage does not have to be difficult or time-consuming. A local independent insurance agent can answer your insurance-related questions, offer trustworthy advice, and obtain customized quotes from multiple insurance companies.

Contact an insurance agent near you to begin your search for the best commercial vehicle insurance policy for your Lexington business.

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https://uknowledge.uky.edu/cgi/viewcontent.cgi?article=2595&context=ktc_researchreports
https://www.fmcsa.dot.gov/international-programs/canada/commercial-motor-vehicle-cmv-operations-kentucky