If you and your workers use any form of vehicle to do business – whether company-owned, rented, leased, or personal automobiles in Massachusetts, you most likely need commercial auto insurance. It is a necessary safeguard that protects you against losses from the cars, vans, trucks, and other vehicles you use for business. Like in many states, commercial auto insurance is legally required in Massachusetts and a must for any business that uses vehicles. You will not be allowed to use your vehicle in Massachusetts or even register it for business without getting auto insurance in Massachusetts.
Considering the importance of commercial auto insurance in Massachusetts, this article explains what the requirements for commercial auto insurance in Massachusetts are and recommend the 5 best providers of commercial auto insurance in Massachusetts.
- The 5 best commercial auto insurance companies in Massachusetts
- What is Massachusetts commercial auto insurance?
- Who needs commercial auto insurance in Massachusetts?
- What are the requirements for commercial auto insurance in Massachusetts?
- What does commercial auto insurance cover in Massachusetts?
- What is the average cost of commercial auto insurance in Massachusetts?
- How to find cheap commercial auto insurance in Massachusetts?
The 5 best commercial auto insurance companies in Massachusetts
- Progressive: Best for a fast online quote and flexible, customizable coverages
- Simply Business: Best for ease of use
- Safety Insurance: Best service
- biBERK: Best for cheap commercial auto insurance
- CoverWallet: Best for Massachusetts small businesses who want to compare several quotes online
Progressive: Best for a fast online quote and flexible, customizable coverages
Progressive offers one of the highest premiums for auto insurance in Massachusetts. However, if you need a flexible policy that allows you to customize things to suit your business, this might be the right place for you. The company allows you to bundle up your commercial auto insurance policy with other relevant policies like gap insurance, ridesharing coverage, and custom parts, all available as extras. Progressive insurance also offers their clients discounts when they use their services. For instance, you could get a discount for getting a quote and purchasing a policy online, being a homeowner, going paperless, etc.
Progressive also provides a simple and fast online quote. It only takes a few minutes to get the quote below for a small business in Massachusetts.
Simply Business: Best brokerage for finding the cheapest commercial auto coverage
Simply Business is an online broker that connects small business owners with the right commercial business providers. The company does this thanks to its huge network of partners. As soon as the company links you with its partners, the prospective partner handles the rest from there.
- Agents can help with unique commercial truck insurance needs.
- Highly personalized service.
- Great claims-making and resolution experiences.
- Limited online capabilities.
- Sentry-affiliated agents aren’t available in all areas.
- Not as many discounts as many other insurers.
Safety Insurance: Best for Massachusetts small business who value good services
Safety Insurance was founded in 1979 to provide the best service possible to customers. Today, they are one of the leading providers of auto insurance in Massachusetts. Their commercial automobile insurance covers vehicles used for business purposes, such as privately owned business vehicles, trucks, tractors and trailers, and fleets of vehicles. Their commercial automobile program supports a wide range of policy forms and coverage limits and endorsements that extend coverage beyond what is provided on the standard policy form. Unfortunately, to get a quote, you have to meet with a local independent agent.
biBERK: Best for cheap commercial auto insurance
biBERK is one of the few insurance companies that offer low-cost commercial auto insurance in Massachusetts. The commercial auto insurance of biBERK has similar benefits as personal car insurance. Asides from that, they offer you cheap rates.
biBERK is a subsidiary of Berkshire Hathaway, the parent company of Geico. Thanks to that, it has a great reputation and excellent financial strength.
- Low-cost insurer backed by financially solid Berkshire Hathaway.
- Possible to save up to 20 percent on coverage.
- Good online insurance buying experience: it only takes less than 10 minutes to get a quote online and buy a policy online
- Best for basic insurance needs.
- Difficult to customize coverage online.
- May not be able to get coverage for non-standard trucks.
CoverWallet: Best for Massachusetts small businesses who want to compare several quotes online
CoverWallet is an online broker which means, they do not offer their insurance policy. Instead, the company offers online quotes from their partners, assessments, and resources to help you understand what types of insurance you need for your business and online claims processes. CoverWallet may be able to manage your pre-existing insurance policies. CoverWallet also offers commercial auto liability information and reading material to aid your understanding further. The company has the backing of Aon and also has an AM Best rating of A.
The quote form for commercial auto insurance on CoverWallet is relatively simple. It shouldn’t take you more than 10 minutes to finish the quote form and see several quotes from their partners to compare and select the best and the cheapest one. In some cases when CoverWallet isn’t able to provide online quotes, it is probably because of the complications of the industries or the vehicle uses in your business. You need to call their customer service to discuss your quote options.
What is Massachusetts commercial auto insurance?
Commercial auto insurance in Massachusetts works almost the same way as personal auto insurance. Like personal auto insurance, people pay for commercial auto insurance to insure their vehicles. The only difference is that commercial plans are simply written to address the specific demands of businesses, and premiums are determined by how businesses utilize automobiles.
If your company owns vehicles, this policy will protect you from the costs of collisions and other vehicle damages. It also provides liability coverage for your company if one of your drivers is at fault in an accident.
Your commercial auto policy may include coverage for the following items:
- Vehicles that your company owns, rents, or leases
- Vehicles owned by your company
- All vehicles that you use for business purposes, including those, owned, rented, or leased by the company (e.g., when you or your employees drive your vehicles for business purposes.
Who needs commercial auto insurance in Massachusetts?
Almost all businesses in Massachusetts need a commercial auto insurance policy. So long your business operates with vehicles, you need one of these insurance policies. Generally speaking, here is a list of companies that might benefit from commercial auto insurance in Massachusetts:
- Companies that own fleets of vehicles
- Logistics and delivery companies
- Transportation, charter bus, taxi, and limousine companies
- Landscaping, snow plowing, and property management companies
- Companies that move their vehicles between multiple locations
Without coverage, businesses that own vehicles are likely violating state law and leaving themselves dangerously exposed to potential losses. Massachusetts law requires most vehicles taken on public roads to be insured, and the person or entity that owns the vehicles is generally responsible for insuring them. Additionally, businesses could face substantial liability lawsuits if a vehicle causes an accident and there isn’t insurance in place.
What are the requirements for commercial auto insurance in Massachusetts?
The laws of Massachusetts make it compulsory for all businesses that use vehicles to have commercial auto insurance.
Basic commercial auto coverage cequirements in Massachusetts:
In Massachusetts, there are several kinds of insurance coverage that commercial vehicles are mandated to carry. These are minimum requirements that increase depending on the vehicle’s purpose. The minimum insurance requirements are:
- $20,000 per Person for Bodily Injury
- $40,000 per Accident for Bodily Injury
- $5,000 for Property Damage
- $8,000 for Personal Injury Protection Per Person
- $20,000 Per Person Involving Uninsured Drivers
- $40,000 Per Accident Involving Uninsured Drivers
Depending on the type of vehicle you use in your business, the state might require that you get higher limits. Construction companies are one of such companies.
Insurance coverage requirements for Massachusetts rideshare drivers:
In 2016, Massachusetts implemented one of the strictest set of laws in the country for rideshare companies and their drivers. These included getting mandatory background checks, vehicle inspections, and requiring rideshare companies to cover their drivers with a minimum $1M policy when the rideshare app is on and the driver is headed out to pick up a passenger.
Rideshare drivers are also required to carry commercial auto insurance in the amounts of:
- $50,000 for Bodily Injury
- $100,000 Bodily Injury Per Accident
- $30,000 for Property Damage
Drivers also need uninsured driver coverage in these amounts, and must carry additional personal injury protection insurance.
Property transport carrier coverage requirements in Massachusetts:
Massachusetts truck drivers also have to meet certain commercial truck insurance requirements, like:
- Oil Transport: $1,000,000 Liability Insurance
- Hazardous Materials: $5,000,000 Liability Insurance
- Household Goods: $300,000 Liability Insurance
- General Freight: $750,000 Liability Insurance
Household goods carriers should also carry $10,000 per vehicle and $10,000 per incident in cargo insurance.
What does commercial auto insurance cover in Massachusetts?
Different insurers have different policies when it comes to auto insurance in Massachusetts. As a result, the coverage differs from place to place. However, generally speaking, most companies offer coverage options similar to what you get from a personal auto insurance policy. This includes coverages like:
Bodily injury liability coverage
This includes costs that may arise from medical bills caused by the use of one of your vehicles. For example, if you or one of your staff hit someone with a company van while at work, this insurance might cover their treatment bills.
Property damage liability coverage
This includes costs associated with damage to other people’s vehicles while you are at work. For instance, maybe your company car was to hit someone else’s vehicle while delivering pizza. This insurance coverage might pay for the damages uncured in repairing the person’s vehicle and other possible lawsuits from the incident.
Personal injury coverage
This includes costs associated with people who are injured in the insured vehicle. For instance, if the person driving the insured car or other persons with him get injured, the insurance will cover their medical expenses.
Uninsured and underinsured motorist coverage
This includes all costs associated with damages caused by drivers who do not have proper insurance. This coverage is important considering that about 6.2% of drivers in Massachusetts do not have any insurance, and a lot more drive around with insurance policies that are not adequate. However, when you have this coverage, it will protect you if your cars get in accidents with drivers who are either uninsured or do not have adequate insurance.
This covers all costs incurred when your company vehicle gets involved in non-collision incidents.
This covers all incidents that involve collisions with your company vehicles.
Depending on the broker you use, the policy you get might have additions or subtractions to the above coverages. For example, if your vehicles were to suffer damage from extreme weather problems like floods, hailstones, or maybe a deer ran into your parked commercial vehicle during the winter. In such situations, your commercial auto insurance will cover you.
What is not included in Massachusetts commercial auto insurance coverage?
Commercial auto insurance is a dicey issue that often comes with several misconceptions about what is and what is not covered. The following are some instances where your commercial auto insurance alone might not be sufficient:
- Damage to or caused by leased/employee-owned vehicles. To cover such incidents, you need the Hired and Non-Owned policy added to your commercial auto insurance.
- Expensive claims or lawsuits that exceed the policy’s limits. To cover for such, you might need to carry an additional business umbrella coverage.
- Mechanical breakdowns that happen during work
- Damages caused by equipment attached to a covered vehicle, such as a new snowplow attached to your company truck. If you add any equipment to your insured vehicle, you need to discuss that with your insurer before signing an agreement.
- Finally, any vehicle not included in the policy is naturally not covered. However, you can review and update the list of vehicles when you upgrade your fleet.
What is the average cost of commercial auto insurance in Massachusetts?
Massachusetts commercial auto insurance rates vary greatly from one company to the next. Premiums for commercial auto insurance are calculated based on the number of vehicles your company owns and the types of coverage required by the vehicle in question. For instance, the cost of insuring a sedan for someone selling pizza locally will differ from the cost of insuring a large truck that transports goods across the country.
Having said that, the average cost of commercial auto insurance in Massachusetts is $4,920 a year, or $410 a month.
This is just the average cost. Your own quote will be different. Be sure to shop around with a few companies or with a broker like Simply Business or commercialinsurance.net to compare several quotes before making your final decision.
What factors affect the cost of commercial auto insurance in Massachusetts?
Many factors that affect the cost of auto insurance in Massachusetts, some of which are as follows:
If your business is in a large city like Springfield, Worcester, or Boston, the chances are that you will pay more for auto insurance than someone with their business in a small town like, say, Pittsfield. Keep in mind that prices are typically higher in areas with more claims or more expensive settlements than in other areas. Also, the record of the occurrence of natural disasters like tornadoes and hurricanes can contribute largely to the price of your commercial auto insurance.
The distance you travel regularly will also have an impact on your Massachusetts commercial auto rate. For example, a commercial vehicle that moves only within Boston is considered less dangerous than a vehicle and, as such, will command less premium than a vehicle that moves across states in Massachusetts.
The amount of coverage you need will also affect your premium. For example, policyholders that maintain only the Massachusetts state minimum limits of 20/40/5 will pay less than those who require a combined single limit of $1M.
Some professions carry more risk than others, and as a result, they require more protection. For instance, a construction worker who works with heavy machinery should pay more than someone who sells pizza with his car.
Your vehicle type, size, and what you do with the business vehicle will also determine your premium price. For example, a food truck will command a higher price compared with a small van with less flammable equipment in it.
If you have drivers that have had a history of accidents or road violations in the last three years, you will have to pay more to insure your cars.
With that said, the following are some Massachusetts commercial auto insurance price ranges:
- Commercial auto insurance costs between $1,200 and $2,400 per year.
- The cost of commercial truck insurance is between $800 and $2,000 per year.
- The cost of commercial bus insurance is $35,000 per year.
- The cost of commercial taxi insurance is $5,000 to $10,000 per year.
- The cost of commercial tractor-trailer insurance is $2,500 or more per year.
How to find cheap commercial auto insurance in Massachusetts?
Just as numerous factors influence business auto policy premiums, there are numerous ways for businesses to save money on coverage. Many insurance companies provide pay-in-full discounts, and policies purchased through package policies (such as business owners’ policies or commercial package policies) frequently have lower rates. Furthermore, some insurers offer loyalty discounts, experience-based discounts, and commercial driver discounts.
Of course, comparing quotes from different companies with an independent insurance agent is one of the best ways you can reduce your commercial auto policy premiums. An independent agent will show you policies from various insurance companies, so you have the information you need to choose the policy that provides the best protection and at the best price.