The commercial trucking industry and the number of commercial trucks and vehicles on the streets and highways in North Dakota are booming. Whether you are new to the scene or you are an experienced commercial businessperson in the state looking for a new provider, commercial auto insurance is a must-have for any transportation business. Before you search for commercial auto insurance, however, there are a few things to keep in mind.
According to the Bureau of Labor and Statistics, thanks to the Bakken formation and the oil boom, trucking and other transportation services related to the oil and natural gas industries have nudged North Dakota's unemployment rate to an all-time low of 2.6 percent.
North Dakota's economy is growing five times faster than the nation's economy, and transportation services are driving much of that growth.
Commercial auto insurance provides protection for any business vehicle against liability claims and property damage. The limits on a commercial auto insurance policy are usually much higher than for a traditional passenger vehicle policy to reflect the increased drive time and the likelihood that your fleet is heavier and more valuable than a four-door sedan.
It's important to carry insurance tailored to your business interests, as a basic car insurance policy most likely will not pay claims for an accident or injury caused by a commercial vehicle.
All vehicles traveling on public roads in North Dakota must carry minimum liability insurance. However, if you're in the business of transporting hazardous materials or transporting people with your taxi service, you may have to carry commercial auto insurance. Always check with your local Department of Motor Vehicles to find out if you must carry certain levels of insurance for your particular business.
If you or your employees must have commercial driver licenses to operate the vehicles owned by your business, it's a good idea to carry commercial auto insurance rather than basic car insurance, as your provider may deny any claim related to business travel.
Most ND insurance providers will give you several options from which to choose as you build your commercial vehicle policy, including the following:
There are other options – industry-specific coverage options, so be sure to speak with a qualified insurance agent to find out which choices are best for your commercial interests.
The quotes you will see from North Dakota insurance providers will depend on a number of factors, including these:
Generally, quotes for a passenger car will be much lower than quotes for a heavy-duty vehicle such as a dump truck. However, insurance carriers also offer fleet insurance, typically at a bulk discount.
The cost of insurance also depends on the driving records of the drivers who will be using your commercial vehicles. Employees who have bad driving records will cost you more to insure, so it is always important to perform a driving record background check on prospective employees. Drivers who are between the ages of 30 and 65 typically get better insurance rates.
In terms of the cost for the type of vehicle you are insuring, rates are generally the least expensive for vehicles used in construction and farming. Vehicles used as passenger vehicles and delivery vehicles are slightly more expensive. The most expensive vehicles to insure include heavy-duty cargo vehicles that transport loads heavier than 10,000 pounds.
Whether your North Dakota business delivers pizza, newspapers, people or heavy equipment, you want a commercial auto insurance that protects your interests. Knowledgeable, independent insurance agents in the Trusted Choice® network are always available to answer your questions, suggest coverage options best suited for your business and even assist you in filing a claim.
Contact a Trusted Choice member agent near you to find out how you can obtain quotes and the perfect commercial auto insurance policy that meets your needs and budget.