If your company has a fleet of vehicles for the correct execution of its daily work, it will surely need the support of commercial vehicle insurance. It is a policy that offers multiple coverages for different types of vehicles: trucks, cars, and vans.
This type of insurance includes three essential elements. The first is physical damage insurance, designed to protect your vehicle in a collision. The liability insurance acts in case of bodily injury, serious injury, property damage, or uninsured motorist care. Finally, the additional coverages encompass labor, towing and medical payments.
But the issue here is how much commercial vehicle insurance costs a company with a fleet of automobiles, which is indispensable to keep the production afloat.
What is commercial auto insurance worth?
There is no single rate for contracting this type of service. For example, the number of vehicles and commercial use significantly influence the total amount.
But to get a clearer idea of what such a policy will cost you, we can say that $1 million in coverage might suggest an average cost of $142 per month ($1,704 per year).
While this is not an exact figure, it gives users a much more accurate picture of how the commercial vehicle insurance market is handled in the United States.
What factors go into determining the price of commercial vehicle insurance?
As mentioned above, several factors influence the final price of this type of insurance. Generally, these elements are evaluated:
- Model, make, and year of manufacture of a given vehicle.
- Value of a zero kilometers vehicle.
- Driving history of a given vehicle.
- The net value of the vehicle, especially if it is a truck.
- Claims history.
- The number of commercial vehicles you will insure within your company.
- Deductibles and limits.
- The reason you will use a particular vehicle within your company.
What exactly does this type of commercial vehicle insurance cover?
A commercial vehicle insurance policy has the same services as private car insurance coverage. These are the most important ones:
- Liability: This service is commensurate for both you and your company. If you take out liability insurance, you will have full coverage in case of property damage or personal injury. It acts as long as the driver is legally responsible for any event that could generate these damages.
- Collision Coverage: The advantage of collision coverage is that your vehicles will be protected in case of collisions. You can use it whenever your vehicle hits another vehicle or a blunt object. But also if another car crashes into the insured model.
- Comprehensive policy: Many people opt for this type of policy. It guarantees coverage against vandalism or theft. But it is also useful if your vehicle suffers damage as a result of incidents with animals or weather damage.
- Medical payments: With medical expenses, you can cover costs related to hospitalization and care. This occurs if you, your employees, or passengers suffer an accidental injury that requires prompt medical intervention. It also applies in the event of motor vehicle accidents, regardless of who is at fault.
- Uninsured or underinsured motorists: Another important element in commercial vehicle insurance is such a convenient and beneficial policy. If an uninsured or underinsured driver causes an unwanted event, the injured party is entitled to medical attention for injuries. But it also acts in case of other damages caused to you, your employees, or your passengers.
- Rental reimbursement: Refers to your car’s rental if it has broken down.
What are the added services?
Customization of the policy is possible. If you want or if you are obliged to do so, choose from the options below:
- Roadside driving assistance: It is essential to have a service that protects you while driving. Generally, this type of product includes services not included in the commercial vehicle policy.
- Replacement cost of a new car: Thanks to this service, you will get a total replacement if your vehicle is declared a “total loss.”
- Additional towing: This service guarantees the driver a towing service superior to what is generally offered by the commercial vehicle insurance service.
Paying for commercial vehicle insurance can be a great benefit, especially for those using automobiles for business production. You first need to know that there is no single amount.
The total value is subject to a series of variables you should study before contracting.