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Are you wondering, “How much does commercial auto insurance cost?”

We don’t blame you.

As a business owner, when covering your company with commercial auto insurance, it’s smart to investigate what your monthly premium will be.

For an in-depth look at commercial auto insurance in Tennessee rather than Nevada, check out our article on the subject.

What determines the price of commercial auto insurance?

Commercial auto insurance varies in price since it’s not a one size fits all arrangement.

Every business has its own set of coverage needs, but let’s look at some common factors that will impact your cost:

  • The magnitude of your business. If your business has limited assets and the risk of loss is small, then your premium will be less than if you run a large business with more to lose.
  • Driving history. Insurance companies will look at your driving history and potentially those of your employees when determining the cost of your premium. If you have a recent history of claims, your rate might increase significantly.
  • Shortage of experienced drivers. Inexperienced drivers increase the risk of claims and will almost certainly increase your premium.
  • The nature of your business. Some businesses are riskier than others. For instance, a company that owns a fleet of utility trucks that is dedicated to transporting hazardous waste will have a much higher premium than a company with only one or two vehicles that are only used for simple tasks.
  • Rising medical costs. Higher medical costs equal more expensive claims. Due to the rising cost of medical expenses, your premium is likely to be higher to make up the difference.
  • The rising cost to repair damaged vehicles. The pandemic has created supply shortages that have driven up the cost of vehicle parts. For this reason, insurance premiums have gone up as well.
  • Lawyers are arguably involved in more insurance cases today than ever before. With so many people benefitting from professional representation, insurance premiums have gone up to compensate for money lost in court.

How much does commercial auto insurance cost?

The average price range for minimal commercial auto insurance, according to Insurance Navy, “Is anywhere from $50 to $200 a month for each vehicle or about $600 to $2,400 per year. This is also the average when the vehicle(s) in question are standard-sized cars.”

Insureon says, “For a policy limit of $1 million, the median cost of commercial auto insurance is $142 per month or $1,704 per year.”

Of course, what you pay changes if you add to your liability coverage.

If you add comprehensive coverage, uninsured motorist coverage, medical coverage, collision coverage, hired and non-auto insurance, and other add-ons, you’ll be looking at paying more.

Personal auto insurance

Personal insurance policies are used for your personal vehicles when they are being used for personal reasons.

Because the liability of driving your own vehicle for personal reasons is less pronounced, your premium should be less costly than commercial insurance.

Further Reading: What Is Not Covered By Commercial Auto Insurance

Here are some things that will not be covered by commercial auto insurance.

  1. Intentionally damaging your company’s vehicles or inflicting injury on yourself.
  2. Some kinds of equipment damage.
  3. Damage caused by reckless driving.
  4. Damage to rental vehicles. 

Still wondering, “How much does commercial auto insurance cost?” Call us today for more information.

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