Insurance

Commercial Auto Insurance Cost: Everything You Need to Know

If you need vehicles for your business, you should also budget for business auto coverage. Reviewing the factors that influence the cost of business auto insurance can help you plan for this often significant expense. Collect data on the average distance traveled, cargo value, your staff’s driving history, and the types of vehicles you plan to purchase before getting quotes from commercial auto insurance companies.

types of commercial auto coverage

Business auto coverage protects your business from the cost of damage and medical expenses after an auto accident (first-party coverage). It also includes third-party coverage, often called liability, which pays for property damage and medical expenses for other parties involved if someone insured under your commercial policy causes an accident.

Reading: How much does business car insurance cost

Collision coverage, a form of first-party insurance, covers the cost of repairing your commercial vehicle after an accident, regardless of fault. The other main primary policy is comprehensive coverage, which pays for damage to your commercial vehicle or fleet caused by incidents other than accidents, such as theft, vandalism, or extreme weather.

Other types of commercial auto insurance coverage include:

  • contracted or non-owned liability, which covers third-party property damage and bodily injury expenses when a covered person causes an accident in a vehicle your company hired or leased.
  • contract auto physical damage coverage, which pays the cost of damage to a covered contract or rental vehicle in an accident, regardless of fault.
  • medical payments insurance, which pays the medical bills of your drivers and passengers after an accident, regardless of fault.
  • Uninsured or underinsured motorist insurance, which pays for property damage and medical costs if you are in an accident with an uninsured or underinsured driver.
  • roadside assistance coverage pays for towing, gas, tire changes, and other mechanical needs if your crew gets stranded.
  • average cost of commercial auto insurance

    These are the approximate annual policy costs for various types of commercial vehicles:

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