While car insurance rates vary depending on your driving record, age, and location, the average cost of commercial car insurance are usually much higher than personal car insurance. In fact, according to a study by Insure.com, the average commercial car insurance policy costs $1,594 per year compared to $895 for personal car insurance.
What is Commercial Car Insurance?
Commercial car insurance is a type of insurance that covers vehicles used for business purposes. It typically costs more than regular car insurance, and it may not be available in all states.
Commercial car insurance is designed to protect businesses from financial losses if someone is injured or steals a vehicle used for business. Coverage can include property damage, liability, and accident forgiveness. Some policies also offer theft protection, roadside assistance, and business use discounts.
Most businesses need commercial car insurance because they are at greater risk of accidents. Commercial drivers are more likely to be involved in accidents than drivers in other occupations. The types of accidents that can happen while driving for business include: trucking accidents, while delivering goods; taxi accidents, while transporting passengers; and trucking accidents while transporting heavy cargo.
The cost of commercial car insurance varies depending on the policy and the state in which the business operates. The average cost of commercial car insurance is about $1,000 per year.
Get Insured
Commercial car insurance costs vary a great deal, depending on the make and model of the vehicle, the age and driving history of the driver, location and type of coverage selected, and other factors. Generally speaking, rates for comprehensive coverage will be higher than rates for collision coverage. Rates also vary by state. The following are average rates for commercial car insurance in selected states:
- Alabama – $1,152
- Alaska – $1,483
- Arizona – $1,362
- Arkansas – $931
- California – $2,711
- Colorado – $1,521
- Connecticut – $1,783
- Delaware – $971
- Florida – $2,289
- Georgia – $1,569
- Hawaii – $1,588
- Idaho – $927
- Illinois – $1,709
- Indiana – $952
- Iowa – $969
- Kansas – $898
- Kentucky – $911
- Louisiana – $1,241
- Maine – $1,333
- Maryland -$1,587
- Massachusetts-$2,020
The Types of Coverage You Need
Commercial car insurance is meant to protect you and your vehicle while you are driving for a business. The amount of coverage you need will vary depending on the type of business you are driving for, how much money you make, and your driving history.
Below is a table with common types of coverage and the corresponding costs.
COST OF COVERAGE TYPE
Minimum Coverage
(Per Month)
Uninsured Motorist $100 \/ 300 \/ 1000 \/ 3000
Property Damage $200 \/ 600 \/ 1200 \/ 4000
Comprehensive $600 \/ 1200
Liability Coverage Insurance
When you’re driving your car, you’re trusting that the person in the other lane is doing the same. But accidents happen, and when they do, you could end up with legal responsibility.
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Fortunately, most states have laws providing for minimal liability coverage for drivers in case of accidents. This coverage typically ranges from $25,000 to $100,000, and it pays for your legal fees and costs if you’re sued because of an accident.
You should also consider purchasing liability insurance for your business. This type of coverage covers you and your employees if someone is injured on company property or while performing their job duties. Minimum coverage can be as low as $500,000, but most businesses buy liability insurance that provides greater protection.
Physical Damage Insurance
Commercial car insurance typically costs more than personal car insurance. The main reason for this is that commercial vehicles are usually larger and carry more cargo, which increases the chances of them being in an accident. Additionally, commercial auto policies may include coverage for things like trucks, trailers, and other large equipment.
Other Coverage
Commercial car insurance is typically more expensive than personal car insurance because it includes additional coverage for business use, such as property damage and liability. The cost of commercial car insurance can vary a lot depending on the state you live in, your driving record, and the type of vehicle you drive. In general, commercial car insurance rates tend to be higher than rates for personal cars.
Does Your Business Need Commerical Auto Insurance?
Commercial auto insurance is a necessity for businesses of all sizes. If you operate a business that transports people or goods, you need to ensure that you have the proper coverage in case something goes wrong. The average cost of commercial auto insurance varies depending on the state and the type of vehicle you own, but it is generally cheaper than regular car insurance.
If you are not sure if your business needs commercial auto insurance, speak with your insurance agent or broker. They can help you determine what coverage is necessary and give you a quote.
How Much Does Commercial Car Insurance Cost on Average?
Commercial car insurance cost varies depending on the size, make, and model of the vehicle. However, the average commercial car insurance cost is $1,500 per year.