Accidents are not uncommon on the roads in Orem, Utah. When accidents happen, drivers and vehicle owners need the protection offered by auto insurance. And if you’re among the many local business owners who use company vehicles, you will want to be sure to protect your company with the right commercial vehicle insurance policy.
A local independent insurance agent can help you find an affordable policy that protects your assets and is compliant with all state and federal regulations. Independent agents aren’t tied down to a single carrier. They can obtain quotes from multiple insurance companies, so you can be sure to find the customized commercial vehicle coverage that properly protects your unique business.
Why Is Commercial Auto Insurance So Important?
Commercial vehicles face greater risks than most personal vehicles. Commercial vehicle insurance is designed to protect your business from losses caused by liability lawsuits, expensive vehicle repairs, and loss of income after an accident involving one of your company-owned vehicles. If you don’t have any business-owned vehicles, but you or your employees use personal vehicles for business use, you probably still need commercial auto insurance.
If you try to file a claim with your personal auto insurance policy for an accident that occurred while using your vehicle for business purposes, your claim may be denied. The state of Utah compiles crash statistics for a variety of different types of vehicles. In recent years, heavy trucks and buses had the highest fatal crash rate per registered vehicle in the state.
Utah total crashes by vehicle type
- Property damage only crashes, heavy trucks and buses: 3,261
- Injury crashes, heavy trucks and buses: 840
- Fatal crashes, heavy trucks and buses: 27
How Much Does Commercial Auto Insurance Cost in Orem, UT?
Commercial auto insurance prices can vary considerably from one company to the next. This is because insurance companies assess risk and calculate rates according to a number of different factors that are unique to your business. Your rates for Utah commercial vehicle coverage are determined based on the following:
- The number of vehicles your business needs to insure
- The types of vehicles you are insuring as well as each vehicle’s year, make, model and safety features
- What you will be using the vehicles to transport (e.g., food, hazardous materials, people, etc.)
- The estimated number of miles your vehicles will be driven each year
- The driving records of any employees who may be operating the vehicles
- Information about the employees who will be driving the vehicles
- The amount of coverage you are purchasing
Because each insurance company has its own proprietary formula for calculating premiums, you can save a lot of money by shopping around for the most competitive price. And comparison shopping is easy when you work with an independent insurance agent who isn’t tied to one carrier.
How Much Commercial Auto Insurance Does My Business Need?
The requirements for commercial auto insurance coverage are determined by state or federal law, depending on:
- The type of vehicle
- The vehicle’s weight
- The number of passengers
- What the vehicle carries (e.g., innocuous goods or hazardous materials)
- Whether it is engaged in interstate commerce
Most small business owners don’t have to worry about federal regulations for their business-owned sedans, vans, or pickups. In these cases, Utah commercial auto insurance requirements are the same as for personal vehicles. All auto insurance policies in Utah must include:
- Personal injury protection (PIP): $3,000 minimum coverage requirement, pays your medical expenses and some lost income if you are injured in an accident.
- Bodily injury and property damage liability coverage: Pays for third-party medical bills and car repairs. Required limits are 25/65/15, or $25,000 per person, $65,000 per accident, and $15,000 for property damage.
Passenger carriers, freight carriers, trucks over 10,000 pounds, and vehicles that carry hazardous substances must follow federal regulations for liability insurance coverage.
What Does Commercial Auto Insurance Cover?
All commercial vehicle insurance policies in Utah will include the specific coverages required by law, at a minimum. Insurance companies also offer several types of optional coverage. You can choose the options that are most necessary for your needs.
- Collision coverage: Covers damage to your vehicle sustained in a collision, regardless of who was at fault.
- Comprehensive coverage: Covers the cost to repair damage to your vehicle due to non-collision events such as fires and property crimes.
- Uninsured motorist coverage: Covers your employee’s medical expenses and damage to your vehicle’ following an accident caused by an uninsured or underinsured driver.
- Towing and roadside assistance: Covers the cost of a service call if your company vehicle becomes disabled while it is out on the road.
- Non-owned or hired auto liability insurance: Provides liability coverage for non-owned vehicles being used for business purposes, such as when you rent or lease a vehicle or when you or an employee use a personal vehicle for business purposes.
You might also want to consider purchasing commercial umbrella insurance. It adds liability coverage that is beyond the limits of your commercial vehicle policy. A local independent insurance agent can help you decide which of these coverage options will benefit your Orem business.
Why Work with an Independent Insurance Agent?
Finding the perfect commercial auto insurance policy does not have to be difficult or time-consuming. Local independent insurance agents can answer your questions, offer advice, and provide you with multiple customized quotes from reputable insurance companies.
Contact an agent in or near Orem today.
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