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Commercial Auto Insurance in Pennsylvania

Commercial Auto Insurance Requirements in Pennsylvania

To operate a commercial Auto Insurance vehicle in Pennsylvania, you’ll need proper insurance coverage. Here’s what you need to know:

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1. Liability Insurance

PA law requires all commercial auto owners to carry liability insurance to cover damages from accidents.

You’ll need coverage for bodily injury and property damage, typically written as 100/300/50:

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  • $100,000 for injuries/death to one person
  • $300,000 total for all injuries/deaths in an accident
  • $50,000 for property damage

Higher limits are recommended for larger fleets. This protects you in case of expensive accidents, but premiums will be higher.

2. Medical Payments Coverage

This covers medical bills for you and your passengers after an accident, regardless of fault. Not legally required but highly recommended, typically with $5,000 to $10,000 in coverage.

3. Collision and Comprehensive Insurance

These are optional but cover damage to your own vehicles. Collision covers accidents, while comprehensive covers events like theft, vandalism or natural disasters. Higher deductibles mean lower premiums but more out-of-pocket costs if you file a claim.

4. Uninsured/Underinsured Motorist Coverage

Also optional but provides coverage if an at-fault driver has little or no insurance. Your policy will pay for damages up to your selected limits.

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To get the best rates, compare quotes from multiple insurers. But make sure any policy you consider meets PA’s minimum requirements for operating a commercial vehicle. The right coverage protects your business and gives you peace of mind.

READ ALSO: Oregon Auto Insurance: Get A Quote 

How to Get the Best Commercial Auto Insurance Rates

Here are a few tips to find affordable coverage for your business vehicles:

1. Check Multiple Companies

Don’t just go with the first insurer you find. Compare quotes from at least 3-4 different companies to make sure you’re getting the best deal. Some of the major providers of business auto insurance in PA include Progressive, Travelers, Liberty Mutual, and Erie Insurance. Compare their rates and see who offers the most comprehensive coverage at the lowest cost.

2. Raise Your Deductibles

If you can afford to pay higher out-of-pocket costs in the event of a claim, increasing your deductibles can lower your premiums significantly. For every $500 you raise your deductible, you can reduce your rates by up to 15% or more. Just make sure you have enough cash reserves to cover the higher deductible amount if needed.

3. Reduce Coverage on Older Vehicles

If you have business vehicles that are more than 5-10 years old, you may want to drop collision and comprehensive coverage on them. These types of coverage are meant to protect you financially from damage to your own vehicle, but for older cars the premiums often outweigh the value of the vehicle. Liability coverage is still required to cover damages to other vehicles or property.

4. Ask About Discounts

Inquire about any discounts for safe drivers, anti-theft devices, bundling with other policies, etc. Every little bit helps when it comes to lowering premium costs.

5. Maintain a Good Driving Record

The driving histories of everyone who operates your business vehicles will impact your rates. Encourage all employees to practice safe driving habits to avoid accidents, traffic violations and claims that will increase your premiums over time.

Comparing multiple quotes, tweaking your coverage, and maintaining a solid driving record are some of the most effective ways to lock in the best commercial auto insurance rates in PA for your business. With some time and effort, you can find an affordable policy that provides the essential protection you need.

READ ALSO: How to Find the Cheapest Auto Insurance in Utah

Top 5 Tips for Saving on Commercial Auto Insurance in PA

Saving money on commercial auto insurance in PA comes down to a few key tips.

Follow these recommendations and you’ll be on your way to lower premiums in no time.

1. Compare Quotes From Multiple Carriers

Shopping around and comparing rates from different insurance companies is one of the best ways to score a lower premium. Get quotes from at least three to five insurers that specialize in commercial auto coverage. Compare the quotes line by line to find the most affordable option that still meets your needs.

2. Raise Your Deductibles

If you increase your deductibles, the amount you pay out of pocket for claims before your insurance kicks in, your premiums will decrease. Go for the highest deductibles you can afford. $1,000 or $2,000 deductibles for comprehensive and collision coverage can make a big difference in your rates.

3. Drop Unnecessary Coverage

Review your policy and see if there are any coverages you can reduce or eliminate, such as towing and labor or rental car reimbursement. Only keep what you truly need. The less coverage you buy, the lower your premium will be.

4. Improve Your Credit Score

In PA, your credit score affects your commercial auto premiums. Work to improve your credit by paying bills on time, limiting new applications for credit, and reducing your credit card balances. Keep your credit utilization ratio under 30% of your credit limits. The higher your score, the lower your rates can be.

5. Bundle With Other Policies

If you have other policies with the same insurer like general liability or business insurance, you may be eligible for bundling discounts. Bundle your commercial auto with other policies to qualify for premium reductions, often up to 20% or more. Bundling multiple policies together is an easy way to save.

Conclusion

Following these useful tips when shopping for commercial auto insurance in PA will help put more money back into your business. Compare, cut coverage, raise deductibles, improve your credit and bundle – save money the smart way

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