Salt Lake City Commercial Auto Insurance

Your Complete Guide to Salt Lake City, UT Commercial Auto Insurance

Whether you own numerous commercial vehicles or you drive your personal car for your small business, you need commercial auto insurance.

There are all kinds of commercial vehicles on the busy roadways of Salt Lake City, Utah. As a business owner, you might own a fleet of sedans for your sales force, or perhaps you own a single delivery truck or van. Whether you own a construction vehicle, delivery van, or snowplow, you will want to be sure that your company-owned vehicles are covered by the right insurance coverage. An independent insurance agent in Salt Lake City can help you find a competitively priced commercial vehicle insurance policy. Your agent can get quotes from multiple insurance companies, answer your questions, and help you make an informed choice. 

Why Is Commercial Auto Insurance Necessary? 

Insurance companies assume that commercial vehicles face greater risks than most personal vehicles. Because different vehicles are used for different purposes, they automatically face different exposures to risks on the road. Commercial vehicles, and heavy trucks in particular, presumably travel more miles than the average personal vehicle and are therefore more likely to be involved in a crash.

Liability lawsuits, property damage, and loss of income are not uncommon when a business-owned car or truck is involved in an accident. That’s why any business that owns vehicles needs commercial auto insurance. It covers many of the large financial losses that can result after crashes involving their vehicle fleet. 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 Salt Lake City, UT?

The cost to cover commercial vehicles will vary from one company to the next. This is because rates are calculated according to several factors such as:

  • How many vehicles you need to insure
  • The types of vehicles you are insuring (e.g., car, van, truck, etc.)
  • The vehicle’s passenger capacity if it will be used for transporting people
  • Whether your vehicles will be used to transport hazardous materials
  • Whether the vehicles will be used locally or for interstate commerce
  • Information about the employees who will be operating the vehicles
  • The amount of coverage you are purchasing

Taking steps to increase driver safety can reduce the risk of accidents, and can help you control the costs of your commercial auto insurance. Limiting the amount of time your drivers spend on the road, making sure your vehicles are well-maintained, and providing your drivers with routine safety training and educational materials goes a long way toward promoting safety and saving money. 

How Much Commercial Vehicle Insurance Does My Business Need?

Commercial vehicles vary by industry. They can range from smaller vehicles such as delivery cars and vans to construction vehicles like dump trucks and front-loaders. They can also include 18-wheel semis or large passenger vehicles like buses. 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. 

Some requirements also vary for taxi cabs, tow trucks, and certain other types of vehicles. Most small business owners won’t have to worry about federal regulations for their business-owned sedans, vans, or pickups. In these cases, your commercial auto insurance requirements will be the same as for your personal vehicle. 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?

In addition to the personal injury protection and liability coverage that is required by law, commercial vehicle insurance offers several policy options that can help you further protect your business finances. Here are some coverage options you may want to consider including in your commercial auto insurance policy:

  • 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. 

Your local independent insurance agent can help you determine which of these optional coverage types are a good fit for your Salt Lake City business.

Why Work with an Independent Insurance Agent? 

Commercial vehicle insurance covers everything from small cars to large buses, so you will want to be sure that you have a policy that is designed to meet the specific needs of your unique business and vehicles. A local independent insurance agent can offer advice and guidance when you are shopping for coverage for your company vehicles.

Contact an insurance agent in or near Salt Lake City to start comparing quotes from multiple, highly rated insurance companies. 

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