emmanuelUnderstanding California’s Commercial Auto Insurance Requirements
Have you been wondering what the best and cheap Commercial Auto Insurance is in California? Worry no more, we got you covered in this article.
To legally operate commercial vehicles in California, you’ll need to meet the state’s auto insurance requirements. These help ensure all drivers carry adequate coverage in case of an accident.
Types of California Commercial Auto Insurance Coverage
Here are some of the types of auto insurance coverage covered in California
1. Liability Coverage
California requires all commercial vehicle owners to carry liability insurance to cover damages and injuries to third parties.
The minimum is:
- $15,000 for injury/death to one person
- $30,000 for injury/death to more than one person
- $5,000 for property damage
However, these limits are very low. For most businesses, it’s a good idea to purchase significantly higher limits, from $100,000 to $5 million or more per accident.
2. Physical Damage Coverage
This covers damages to your own vehicle. While not legally required, it protects you from costly out-of-pocket expenses if your vehicle is damaged or totaled.
The two main types are:
- Collision: Covers damages from accidents with other vehicles
- Comprehensive: Covers non-accident damages like vandalism, theft or natural disasters
Higher deductibles (the amount you pay before coverage kicks in) mean lower premiums but more risk. Find a balance that fits your budget and risk tolerance.
3. Optional Coverages
Depending on your needs, additional coverages could include: uninsured/underinsured motorist, medical payments, rental reimbursement, and more. Your insurance agent can recommend options based on your specific business and vehicles.
By understanding California’s commercial auto insurance requirements and optional coverages available, you can find a comprehensive policy to properly protect your business and keep your vehicles legally on the road.
Shop around at different companies for the best rates and coverage for your unique needs.
READ ALSO: Who Offers the Best Commercial Auto Insurance Coverage?
Tips to Get the Best Rates on Commercial Auto Insurance in California
To get the best rates on commercial auto insurance in California, here are some tips:
1. Compare Quotes From Multiple Companies
Don’t just go with the first insurer you find. Compare quotes from at least 3-5 companies to make sure you’re getting the best deal. Rates can vary significantly between companies for the exact same coverage.
2. Raise Your Deductibles
If you raise your deductibles the amount you pay out of pocket before your insurance kicks in, your premiums will be lower.
Just make sure you can afford the higher deductibles if you do have a claim.
3. Forsake Unwanted Coverage
Review your policy and see if there’s any coverage you’re paying for that you don’t really need.
Dropping things like roadside assistance, rental car reimbursement or towing coverage can lower your premiums.
4. Improve Your Credit Score
In California, your credit score affects your commercial auto insurance rates. Work on improving your score by paying bills on time and limiting new applications for credit. The higher your score, the lower your premiums will be.
5. Bundle With Other Policies
If you have other business policies like general liability, property, or workers’ comp, bundle them together with your commercial auto policy. Bundling multiple policies together can qualify you for a multi-policy discount of up to 20% off your premiums.
6. Increase Your Liability Limits
California requires all commercial vehicles to carry at least $750,000 in liability coverage. Increasing your limits to $1 million or more will only raise your premiums slightly but will provide much more protection in the event of an expensive claim.
Following these tips and shopping around at multiple insurers can help business owners in California find the best rates on commercial auto insurance coverage.
READ ALSO: Your Car Got Smashed? Let an Insurance Claims Lawyer Fight for You
Top 5 cheap Commercial Auto Insurance Providers in California
Here are the top 5 cheapest providers for California commercial auto insurance:
1. State Farm
One of the largest auto insurers in the U.S., State Farm is a solid choice for business owners looking to cut costs.
They offer liability coverage starting around $50 to $200 per month. State Farm provides discounts for safe drivers, multiple policies, and anti-theft devices which can help lower your premiums.
2. Geico
Geico is well known for affordable rates and commercial auto insurance is no exception. Liability coverage starts around $75 to $250 per month.
Geico offers discounts for safe drivers, multiple vehicles, anti-theft systems, and bundling with other Geico policies. They also provide roadside assistance and rental car coverage in case of an accident.
3. Progressive
Progressive is another top, cheap option for commercial auto insurance in California with liability coverage starting at $100 to $350 per month.
They offer discounts for safe drivers, anti-theft systems, and bundling multiple vehicles or business policies together.
4. Liberty Mutual
Liberty Mutual offers very competitive rates for commercial auto insurance with liability coverage around $125 to $375 per month. They provide discounts for safe drivers, anti-theft devices, bundling with other policies, and loyalty.
5. Travelers
Travelers is one of the most affordable commercial auto insurers in California with liability coverage starting at $150 to $400 per month. They offer discounts for safe drivers, loyalty, bundling multiple policies, and anti-theft systems. Travelers also provides roadside assistance, rental car coverage, and towing in the event of a claim.
Conclusion
Comparing quotes from these top 5 cheapest providers is a great way to find budget-friendly commercial auto insurance rates in California.
Be sure to ask about all available discounts to lower your premium as much as possible.
emmanuel
