If you need commercial auto insurance, you likely want to save as much money as possible. What is commercial auto insurance, and who needs it? How do you find cheap commercial auto insurance, and who has the most affordable policies available? Continue reading to find the answers to these questions.
- Who has the cheapest commercial auto insurance?
- What is commercial auto insurance?
- Who needs commercial auto insurance?
- The average cost of commercial auto insurance
- Factors affecting the cost of commercial auto insurance
Who has the cheapest commercial auto insurance?
We set out to attempt to find the cheapest available commercial auto insurance. We realize that it is almost impossible to find out who has the cheapest commercial auto insurance since you have to get quotes from more than 100 providers to compare them side-by-side. Getting commercial auto insurance quotes isn’t as easy as we thought.
We’ve chosen four companies to highlight here because they all offer commercial auto insurance quotes online. It is super easy and fast (less than 10 minutes) to get quotes on their websites. They all offer their own advantages to reduce their rates for commercial drivers.
In order for you to find out who has the cheapest commercial auto insurance for you, you need to at least get quotes online from these 4 companies. Comparing several quotes is the only certain way to find the cheapest one for you.
- biBERK: Cheap commercial auto insurance thanks to its low-cost business model (direct to customers)
- THREE: Cheap comprehensive business insurance policy
- Simply Business: Compare several quotes to find the cheapest commercial auto insurance
- Progressive: Cheap commercial auto insurance thanks to several discounts
biBERK: Cheap commercial auto insurance thanks to its low-cost business model (direct to customers)
The Berkshire Hathaway group is the parent group of biBERK. This company focuses on creating a simple online experience for its customers. You can get a quote, buy the policy, file a claim, and download proof of insurance certificates. They have agents available if you need to speak to someone as well.
Thanks to its direct-to-customer business model, bypassing agents and brokers, they are able to cut costs and pass savings to their customers. They claim that they have saved at least 20% on premiums for their customers.
Their policies tend to have the lowest rates in our experience. However, they also tend to have lower coverage limits as well, so you need to pay attention to coverage limits when you compare their policies with others’.
Getting a commercial auto insurance quotes on bibERK’s website only takes 5-10 minutes.
THREE: Cheap comprehensive business insurance policy
THREE is part of the Berkshire Hathaway group of insurers. Their claim to fame is a simple, understandable policy. Their goal is to have every policy be no more than three pages long, which is where the name comes from.
All of their policies are written in straightforward language that is easy to understand. They combine all the coverages you need into one policy. For example, they combine a typical business owner’s policy with commercial auto, cybersecurity, and workers’ compensation policies into one comprehensive policy.
If you want to obtain a policy that provides comprehensive and full coverage for your business, including commercial auto insurance, general liability, cyber liability, and commercial property insurance, you can’t get a cheaper rate than THREE. THREE’s business insurance policy will provide you with all of these coverages while you have a buy separate policies of these coverages from other insurance companies, which will increase your premiums substantially.
It takes about 10-15 minutes to get a comprehensive quote on THREE’s website.
Simply Business: Compare several quotes to find the cheapest commercial auto insurance
Simply Business is an online insurance broker. If you aren’t familiar with brokers, they typically compare quotes from multiple companies to help you find the best coverage for you at the best price. Simply Business enables you to gather quotes, but everything else is done by the company you choose.
The only way to find out who offers you the cheapest commercial auto insurance quotes is to get and compare several quotes. That can be a time-consuming process. Simply Business helps you achieve that goal more efficiently and with less time. Comparing several quotes is the only way to find out the cheapest option for you.
Progressive: Cheap commercial auto insurance thanks to several discounts
Progressive is the market leader in the commercial auto insurance industry. They have insured most commercial vehicles in the country.
With the scale, they have developed a sophisticated underwriting model to be able to provide competitive rates to all drivers with different risk profiles. It is very likely that if you are new to driving commercial vehicles and have a less-than-perfect personal driving record, you are likely to have high rates with Progressive. However, Progressive provides a lot of discount programs that drivers can earn to reduce their premiums. Earning these discounts will gradually help new drivers build good driving habits, which will reduce their rates further.
Progressive offers quotes online to all businesses. It is super easy to obtain a quote and buy a policy on the Progressive website. Even if you are not sure you will go with Progressive, you should at least get a quote to compare with others to make your final informed decision.
What is commercial auto insurance?
You may have heard commercial auto insurance referred to as business auto insurance. Whatever you call it, it’s insurance for vehicles used for business. Coverages in commercial auto policies are similar to those in your personal automobile insurance policy.
The kind of commercial coverage you need depends on the vehicles you operate for your business. If you drive your personal car for business, you will need one type of business coverage. However, if you have specialty vehicles like trucks, certain kinds of trailers, or other commercial vehicles, you will need more extensive commercial insurance coverage.
Who needs commercial auto insurance?
You may be wondering if you need commercial auto insurance or not. Insurance coverage is required in most states. The key factor for determining whether you need a personal policy or a commercial policy is how you use the vehicle. Here are three considerations that indicate you need to purchase a commercial auto policy:
- Is the car owned, rented, or leased by a business?
- Is the car driven by employees?
- Is the car used to conduct business, even if a business doesn’t own it?
If your answer to any of those questions is yes, then you need to look at commercial auto coverage. For the last question, we aren’t talking about commuting to and from work only. However, if you use your car for meetings with clients, deliveries, or other business activities, you want to explore the idea of commercial auto insurance.
Remember that if your vehicle qualifies as a business automobile, your personal auto policy may refuse to cover if you have an accident while using the car for business. Some activities require at least an add-on for rideshare services.
The average cost of commercial auto insurance
The average cost of commercial auto insurance is $175 per month, or $2,100 per year. Most small businesses pay from $120 to $250 per month for their commercial auto insurance policy. The cost varies significantly due to several factors that we discuss below.
Keep in mind that these are just the averages. Your rates will be different. In order to find the cheapest rate for you, you have to get and compare several quotes. Getting quotes from the 4 companies we recommend above is a good start. They all offer commercial auto insurance quotes online, it only takes less than 10 minutes to get quotes on their websites.
Factors affecting the cost of commercial auto insurance
The cost of commercial auto insurance varies. When your insurance company computes your premium, they will consider the following factors:
- The industry you are in: Risk factors are different depending on the profession you are working in. The insurance company assesses risks based on industry standards and its own internal criteria.
- Your location: Where you are always affects insurance costs. Rural areas typically have less expensive premiums than cities. Also, the number of claims in your particular area plays a role in the cost of your premiums.
- Your vehicle: Your car’s age, size, and purpose influence your cost. So, if you’re using an older vehicle, your premium could be lower than if you have a new car, depending on how you use it.
- Your driving history: Insurance carriers pay attention to your driving record. If you’ve had multiple accidents, or if you have multiple violations, your premium will be higher. Typically, the insurance company will review three to five years of driving records.
- Your coverage requirements: The kind of coverage you need affects how much you will pay. The more coverage you have, the more your premium will be. For example, if you choose to increase your liability limits above the state minimums, your premium will also increase.
Understanding commercial auto insurance and how premiums are determined will help you choose the cheapest auto insurance policy possible. Contact your insurance agent or broker to learn more about commercial automobile insurance and which policies are available within your budget.