Provo Commercial Auto Insurance

Your Complete Guide to Provo, UT Commercial Auto Insurance

Commercial auto insurance can be expensive and complex. Get all of your questions answered and get the coverage you need.

Many businesses in Provo, Utah use vehicles for day-to-day operations. Whether the vehicles are used for deliveries, transporting people, or performing construction work, you are required by law to have a certain amount of commercial vehicle insurance. What’s more, commercial auto insurance is necessary to protect your financial well-being if one of your commercial vehicles is involved in a crash. An independent insurance agent in Provo can help you find the best policy to meet your needs and comply with state requirements. Contact a local agent to compare quotes and make an informed choice. 

Why Is Commercial Vehicle Insurance So Important? 

Auto insurance companies assume that commercial vehicles face greater risks than most personal vehicles, simply because they travel more miles and are therefore exposed to a greater number of risks. Liability lawsuits, property damage, and loss of income are not uncommon when a business car or truck is involved in an accident. Any business that owns vehicles needs commercial auto insurance to protect itself from the financial losses that can result after accidents involving their business-owned vehicles. 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 Provo, UT?

The cost to cover business-owned vehicles can vary significantly from one business to the next. Rates are calculated according to a number of different factors, including:

  • The number of vehicles you are insuring
  • The types of vehicles you are insuring
  • Whether the vehicles will be used to transport people
  • Whether the vehicles will be used to transport flammable or toxic materials
  • The estimated number of miles the vehicles are driven each year
  • Information about the employees who will be driving the vehicles
  • The amount of coverage you are purchasing

You can minimize your risk of a collision by hiring experienced drivers with good driving records, and by ensuring that your company’s vehicles are well-maintained. It is also a good idea to limit the number of hours your employees spend on the road each day to prevent problems with driver fatigue. These efforts to promote safety and minimize crashes can help you control the costs of your commercial auto insurance.

How Much Commercial Vehicle Insurance Does My Business Need?

Commercial auto insurance coverage is 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), and whether it is engaged in interstate commerce. Passenger carriers, freight carriers, trucks over 10,000 pounds, and vehicles that carry hazardous substances must follow federal regulations for liability insurance coverage. 

Tow trucks, taxicabs, and certain other vehicles must also comply with additional insurance requirements. But most small businesses own sedans, vans, or light trucks that must simply comply with auto insurance requirements that 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.

What Does Commercial Auto Insurance Cover?

All commercial vehicle insurance policies in Provo provide at least the minimum liability coverage required by the state of Utah. Other coverage options you can consider include:

  • Collision insurance: Covers the cost to repair your own vehicle after a collision.
  • Comprehensive insurance: Covers the cost to repair or replace your vehicle if it is lost or damaged due to non-collision hazards such as falling objects, floods, fire, or theft.
  • Uninsured motorist coverage: Provides coverage for damage and medical expenses if your employee is involved in an accident caused by an uninsured driver. 
  • Towing and roadside assistance: Covers the cost of assistance if your company vehicle becomes disabled while 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. 

An independent insurance agent can answer questions about your options and offer quotes from multiple insurance companies, so you can get all of the coverage you need at an affordable price. 

Why Work with an Independent Insurance Agent? 

There is no such thing as a one-size-fits-all policy when it comes to commercial auto insurance. A business that relies on a few cars for making local deliveries will have vastly different needs than one that uses heavy trucks for interstate commerce. A local independent insurance agent can help you find a competitively priced policy that meets your state’s coverage requirements. 

Contact an insurance agent in or near Provo to begin your search for customized commercial auto insurance. 

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https://highwaysafety.utah.gov/crash-data/utah-crash-summaries/