Many businesses in Springfield use vehicles. From trucks used to transport supplies to Baystate Medical Center to cargo vans used to distribute the most recent issues of the local newspaper, The Republican, there are many company vehicles on the road at any given time. The state of Massachusetts requires these vehicles to be covered by commercial vehicle insurance.
An independent insurance agent in Springfield can help you find an affordable policy that meets your business’s coverage needs and is also compliant with state laws. Find an insurance agent near you to learn more.
Why Is Commercial Vehicle Insurance Important for Springfield Businesses?
Let’s face it: Accidents happen. Even the most careful drivers can find themselves involved in fender benders on State Street or major collisions on I-291. This is particularly true in the winter when snow squalls and black ice are a common concern in Springfield.
Commercial vehicle insurance is designed to protect your business from large financial losses following an accident. These expenses may be due to liability lawsuits, the cost to repair damage to your vehicle, or even the potential loss of income that may occur if your business is left without its necessary mode of transportation.
In addition to being a great way to protect your business finances, commercial vehicle insurance is required by law.
How Much Does Commercial Vehicle Insurance Cost in Springfield, MA?
Because businesses use wide range of vehicle types for various purposes, the cost to cover business-owned vehicles can vary significantly from one company to the next. It's therefore impossible to quote an “average cost.” Rates are calculated according to a number of different factors such as:
- The number of vehicles your business is insuring
- The types of vehicles being insured (e.g., cargo vans, semis, dump trucks, etc.)
- Whether the 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 (Hazmat)
- The driving histories of the employees who will be operating the vehicles
- Where and how often the vehicles will be driven
- The amount of coverage you wish to purchase
To find out how much a policy will cost for your business, you can ask a local independent insurance agent to provide you with a selection of customized quotes.
What Does Springfield Commercial Vehicle Insurance Cover?
Commercial vehicle insurance in Springfield includes a mixture of required and optional coverage types. In Massachusetts, liability, uninsured motorist, and personal injury protection coverage are all compulsory. All other coverage is optional.
- Liability: This is designed to cover third-party injuries and property damage that your business may be liable for if one of your drivers is responsible for a collision. Your minimum coverage requirement can range from $40,000 to $5 million, depending on the type of vehicle you are insuring and the types of materials you will be transporting.
- Uninsured motorist: This is designed to cover medical costs if your driver is injured in a collision that is the fault of an uninsured, underinsured, or hit-and-run driver. You are required to carry bodily injury coverage in the amount of at least $20,000 per person and $40,000 per accident.
- Personal injury protection: Massachusetts is a no-fault state, so you must carry a minimum of $8,000 in personal injury protection (or PIP) insurance to cover medical treatment following an accident, regardless of fault. Workers’ compensation insurance may also provide some coverage.
- Collision: This can compensate your business for the cost of repairing vehicle damage caused by a collision or a vehicle roll-over, regardless of fault.
- Comprehensive: 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 falling objects, heavy winds, floods, fire, and property crimes.
- Towing and roadside assistance: This can provide coverage for towing or assistance if your company vehicle becomes disabled while out on the road.
- Non-owned auto: This can provide liability coverage if one of your employees or contractors is in an accident while operating their personal vehicle to carry out company business.
- Rental car reimbursement: This can cover the cost of renting a loaner vehicle while your company-owned vehicle is being repaired.
Your local independent insurance agent can help you determine which optional coverage types are appropriate for your Springfield business.
Why Work with an Independent Insurance Agent in Springfield?
Because it can cover everything from small delivery cars to large construction vehicles, there is no such thing as a one-size-fits-all commercial vehicle insurance policy. Obviously, a business that relies on one or two cargo vans for making residential house calls will have vastly different needs than one that transports hazardous materials into New York City using big-rig trucks.
A local independent insurance agent can help you find a competitively priced policy that meets all state and federal coverage requirements. Contact an insurance agent in or near Springfield to start comparing a selection of customized commercial vehicle insurance quotes, and discover how easy it can be to find affordable coverage.
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