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We'll Help You Find the Best Commercial Vehicle Insurance in Minutes

Our nationwide network of local independent agents is ready to help find the perfect coverage at the best rate for your business.

Trustedchoice.com
July 20, 2021
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How this quote will help me?

Your quote is based on several common factors to give you a clear picture of the cost you can expect, though an independent agent can shop around and maybe even improve your rate!


NOTE: This quote is not final, though we did work with professional actuaries to help get you a ballpark figure to get started.

Commercial vehicle insurance is important property and liability protection for any vehicle designated for business use. 

Whether your business operates a whole fleet of dump trucks, semi trucks, and delivery trucks or just a simple 4-door sedan for personal/business use, the right commercial vehicle coverage is key to keeping your business trucking along.

Commercial vehicle insurance coverage varies from one provider to the next, and policies can be uniquely tailored to suit your specific needs. Working with an independent agent is important to pinpoint the exact coverage your business vehicles need. That coverage can include: property damage, liability, bodily injury, personal injury, collision, uninsured coverage, medical payments, and a lot more.

You need commercial auto insurance for any vehicle used for business purposes, any vehicle with a commercial license plate, and any vehicle registered as a commercial auto.

You may also be required to get commercial vehicle coverage if your vehicle is used to do the following. 

  • Carry equipment
  • Transport flammable or hazardous materials
  • Transport housekeeping equipment for business use
  • Carry or transport cranes, winches, or plows
  • Tow other vehicles as a service
  • Deliver any goods, like pizza, or any types of wholesale or retail products
  • Deliver newspapers
  • Transport product
  • Transport people as a chauffeur, limousine service, or taxi service

Commercial vehicle insurance is required under certain circumstances. Any automobile, taxi, van, limo, bus, or small truck used for business purposes does require protection—a personal auto policy will not cover your vehicles if they're used for business.

Your commercial vehicle coverage will protect you and your business from the costs of property damage, injury, and liability claims that you may incur while using your commercial vehicles.

For larger commercial vehicles like tow trucks, cement trucks, construction vehicles, tractor trailers, or semi-trucks, you'll need a commercial truck insurance policy.

Yes, as a business expense, your commercial auto coverage is tax deductible. There are many situations that allow you to deduct the cost of commercial auto insurance for tax purposes when you use your vehicle for commercial or business use. 

If you're self-employed, you may be able to deduct your commercial auto insurance premium under Schedule C. You can always contact the IRS or a tax adviser for clarification on any tax regulations.

Personal use is covered for a company-owned vehicle as long as the company has commercial auto coverage. If you're driving your own vehicle to and from work—not for business purposes—then it will be covered under your personal auto policy.

If you're using your personal vehicle occasionally for commercial purposes, you'll need to have sufficient liability coverage under your personal auto policy, or you can purchase commercial auto insurance. 

The cost of auto insurance depends on a number of things, including the size of your business, the types and number of vehicles, your risks, and the amount of coverage you need.

Generally, a passenger auto vehicle will cost much less to insure than a heavy duty vehicle like a dump truck. However, insurance carriers also offer fleet insurance, and these policies are typically available 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 are typically given better insurance rates.

In most cases, yes, commercial auto insurance is typically more expensive than a personal insurance policy. The cost will depend, however, on the vehicle type, all drivers' records, the vehicle use, options chosen, and a few other factors.

Thankfully, yes. If any business vehicle is stolen, there are a few things that need to happen for you to be compensated for your loss and get you back on the road. 

First, you'll need to file a police report and wait while there is an attempt to recover the stolen vehicle. If it isn't recovered—and you have comprehensive coverage—you can file a claim with your insurance company. After a bit of paperwork, your insurance will compensate you for the value of the vehicle up to the limit of your comprehensive coverage.

With access to multiple insurance companies, independent insurance agents are unlike any other type of agent out there. They’ll help find you the best coverage options and most competitive prices, all for free. 

COMMERCIAL VEHICLE INSURANCE

COMMERCIAL VEHICLE INSURANCE

Find the perfect agent to shop multiple insurance companies on your behalf, saving you time and money.

As a business owner, reliable transportation operations are key in nearly everything you do. How you get your product, how you move around, and even how you deliver it should be as carefully thought out as possible. A large piece of that is having the right fleet of business vehicles and the commercial vehicle insurance to match. 

An independent insurance agent can help you shop multiple carriers for the perfect coverage to help protect your business vehicles from accidents, damage, and theft. They'll help you find the right commercial vehicle insurance at the right price, meet your local legal requirements for vehicle insurance and, most importantly, protect your business’s bottom line.  

What Is Commercial Vehicle Insurance?

Commercial vehicle insurance covers a business’s vehicles, whether it's a fleet of delivery trucks, catering trucks, or a few 4-door sedans. Each policy provides protection specifically designed for business vehicles, including physical damage and liability coverage. 

Some businesses spend a great deal of operating time on the roads, while others only occasionally. An independent insurance agent can help you find the right protection no matter the amount of time you spend on the road.

Who Needs Commercial Vehicle Insurance?

If driving is a significant part of your day-to-day business life, you'll most likely need more comprehensive commercial vehicle coverage than a business that only uses a vehicle for occasional business purposes. If you’re a small business owner who uses their personal vehicle regularly for business—like a florist who uses a delivery truck for flowers—you'll probably need commercial vehicle insurance. And if your business has dedicated company vehicles, then you definitely need it.

With a slight twist on the situation, if you employ delivery drivers or couriers who use their own personal vehicles in the line of doing your business, then you’ll also need to buy special commercial vehicle insurance for them, called non-owned vehicle coverage.

Do I need commercial vehicle insurance flowchart

Why Is Commercial Vehicle Insurance Important?

Driving without insurance is illegal under nearly every circumstance. If your personal coverage excludes commercial driving, you’ll have no coverage when driving for business—which means you could face pretty hefty fines and other penalties.

Driving uninsured is also a bad business decision. If you wreck an uninsured vehicle, you’ll need to replace it yourself, which cuts into your business’s bottom line. If a commercial vehicle is involved in a crash that injures others, the cost could soar even higher.

Is Commercial Vehicle Insurance Required by Law?

Commercial vehicle insurance is mandatory for all your business’s vehicles and is one of the most crucial parts of business insurance. Any automobile, taxi, van, limo, bus, or small truck used for business purposes requires business protection—a personal auto policy will not cover your vehicles when used for business purposes.

Your commercial vehicle coverage will protect you and your business from the costs of property damage, injury, and liability claims that you may incur while using your commercial vehicles.

For larger commercial vehicles like tow trucks, cement trucks, construction vehicles, tractor trailers, or semi-trucks, you'll need a commercial truck insurance policy.

What Does Commercial Vehicle Insurance Cover?

Your business's coverage will depend on your need. Together with an independent insurance agent, you can tailor your commercial vehicle insurance based on your vehicle and your business’s size and niche. Commonly, commercial vehicle insurance can include the following.

Commercial Vehicle Coverages
  • CollisionCovers costs related to a collision, like repairs to the vehicle.
  • General liabilityCovers damage to property or injury to others involved in a collision with the business's vehicle. 
  • ComprehensiveCovers damage not related to a collision like fires, vandalism, or fallen objects like trees.
  • LossCovers costs if the vehicle is stolen.
  • Owned vehicles: Covers all aspects of vehicles owned under a business's name.
  • Non-owned vehicles: Covers vehicles not owned by the business but driven by its employees, like a salesperson's personal car.
  • Hired car: Covers any vehicles that are rented by a business.

How Much Does Commercial Vehicle Insurance Cost?

Broadly, the cost of commercial vehicle insurance depends on the type of vehicle, who’s driving it, and whether you’ll be carrying any passengers. More specifically, the following five factors are typically what affect your commercial vehicle insurance cost the most.

  • Cost of vehicle: The more expensive the vehicle, the more it costs to repair or replace it. For that reason, expensive vehicles will pay more than inexpensive for the same policy.
  • Employee driving record: When hiring employees, it's important to pay close attention to driving records. An employee with a clean driving record will keep your insurance lower, while a driving record peppered with infractions can raise it significantly.
  • Road hours: The more your fleet is on the road, the higher the odds of an accident. Insurance premiums will reflect that risk.
  • Crime: If your headquarters or route puts your vehicles in areas where crime rates are higher, your premiums will increase, and vice versa for safer communities. 
  • Traffic: If your business is located in the heart of a city, you'll see more traffic. More traffic comes from more cars, which means more of a likelihood of an accident—rates will reflect that.

Typically, you can expect coverage to cost at least $1,000 per vehicle annually, with specialty vehicles costing at least tens of thousands per year to insure.

Your Independent Insurance Agent Has Your Answers

Whatever you need, your agent has your back. With a brief intro into the terms, discounts, and process of your commercial vehicle insurance, you know the kinds of questions to be asking. Your agent will ask you all about your business vehicles and their use to help find the perfect blend of coverage at the right cost for you.

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