A business’s automobiles are covered by commercial auto insurance. The cost is determined by various criteria, including the number of vehicles, their worth, and their intended use for business.
Commercial auto insurance costs $142 per month or $1,704 per year for a coverage limit of $1 million. Because it excludes outlier high and low premiums, the median cost of commercial auto insurance provides a more accurate estimate of what your company is likely to pay than the average cost.
Many small business owners (44 percent) pay less than $1,500 per year for commercial auto insurance. The data in the graphs below come from a study of hundreds of insurance policies purchased by small business owners.
Your business car insurance premiums, like your personal auto insurance coverage, are determined by a variety of criteria, including:
- What kind of commercial vehicles do you have?
- The number of cars on the road
- How frequently are your company’s vehicles driven?
- Driving records for you and your workers
Your commercial auto insurance premiums will be heavily influenced by the type of auto coverage you choose. You have the option of purchasing either auto liability alone or comprehensive coverage.
Most states mandate auto liability coverage, which covers you if you or an employee are at fault in a business vehicle collision. Comprehensive commercial auto insurance covers theft and damage caused by weather, vandalism, or fire in addition to what is covered under auto liability insurance.
Optional coverages such as roadside assistance, rental reimbursement, and collision coverage might raise your cost even more. Ensure specific information about your insurance needs to receive an accurate vehicle insurance estimate.
Want to learn more about the auto insurance rates? Read our blog on the best insurance rates in the market.