How Much Does Business Automobile Insurance Cost, and Do I Need It?

What is Business Automobile Insurance?

Business automobile insurance is insurance designed to protect an automotive vehicle or fleet used for business purposes. Automobile liability insurance for a business is crucial if that business:

  • Hauls heavy machines, lifts, trailers, etc., used for business purposes
  • Transports goods or people for a fee.
  • Conducts business with the vehicle.
  • Allows employees to use company-owned vehicles.

How Much Does Business Automobile Insurance Cost?

The median cost for commercial automobile insurance is typically less than $150 per month, but actual rates depend on several factors.

How Many Vehicles Do You Operate? 

If you operate a single vehicle, automobile liability insurance for your business will be lower than a company that uses a dozen or more vehicles, a fleet.

The more vehicles you operate, the higher the risk and, therefore, the higher the insurance cost.

The Type of Commercial Vehicle

What kind of vehicles do you use in the course of your business? If you use sedans, your business automobile insurance will typically be lower than if you use vans or full-size pick-up trucks. Operating large vehicles like trucks is riskier as they are heavier, typically carry more, and are more likely to cause damage due to their size and what they are carrying.

Suppose your vehicle has towing capabilities. Vehicles that can tow are usually larger, and since they can haul, there is the possibility of complications, such as improper handling or hooking. That brings another risk factor that can account for your business automobile insurance cost.

Motorcycles are excluded from this type of insurance, as they are not automobiles.

How Often Do You Drive?

The more your vehicles are in service, the higher risk of damage and accidents. Automobile liability insurance for your business will be higher if your vehicles are driven frequently and across great distances.

If your vehicles cross state lines, you must also account for the cost and insurance differences between states.

Personal and Employee Driving Records

If you have drivers with excessive tickets, accidents, or other negative information on their driving record, that can increase the cost of your business automobile insurance. Accident-prone or negligent drivers are more dangerous on the road. Thus, the insurance cost will be higher to compensate for the additional risk.

Does my Company Need Business Automobile Insurance?

If your company uses vehicles regularly to conduct business, you need business automobile insurance. Many states also require that company vehicles, personal or fleet, be insured in case of an accident or other related incidents. If your company performs services with vehicles, from short-distance deliveries to cross-state towing, you need business automobile insurance to protect your drivers, vehicles, and business.

Fusco Orsini & Associates has helped hundreds of companies of all sizes find affordable business automobile insurance plans that fit their specific needs. We can provide accurate estimates to help you save costs and reap the benefits of having business automobile insurance for your company. 

Contact us immediately for more information.

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