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Who Offers the Best Commercial Auto Insurance Coverage?

What to Look for in a Commercial Auto Insurance Provider

When shopping around for commercial auto insurance, there are a few key things to consider.

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1. Coverage and Limits

First, evaluate what types of coverage and limits you need for your business vehicles. The basic coverage includes liability, collision, and comprehensive but you’ll want to make sure the limits are high enough to fully protect your assets. Some companies also offer additional options like uninsured motorist, medical payments, and rental car reimbursement that could benefit your business.

2. Industry Experience

Look for a provider with extensive experience insuring businesses in your industry. They will have a better understanding of your unique risks and be able to provide tailored solutions. They should also offer lots of discounts and bundled policies for maximum savings.

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3. Financial Stability

Choose a company with a solid financial standing and proven track record of paying out claims. Check independent ratings from agencies like A.M. Best to determine their financial strength and ability to fulfill obligations to policyholders.

4. Cost and Discounts

Compare quotes from multiple top-rated companies to find an affordable policy. Be sure to ask about available discounts for safe drivers, anti-theft devices, bundling with other policies, loyalty, and more. Even small discounts can add up to major savings over time.

5. Service and Support

Look for an insurer that provides convenient service options, fast claim handling, and dedicated support for commercial clients. They should make it easy to update vehicle or coverage information, file a claim, or get questions answered. Excellent service can give you peace of mind that your business and vehicles are well protected.

By evaluating these key factors, you’ll be able to find a commercial auto insurance provider you can trust to fully meet your needs at a competitive price.

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The Top 5 Commercial Auto Insurers of 2023

The top commercial auto insurers are major players for a reason. Here are the biggest and best for 2023:

1. State Farm

State Farm is the largest auto insurer in the U.S. and a solid choice for commercial coverage. They offer liability, comprehensive, and collision policies at reasonable prices. State Farm is known for quick claims handling and high customer satisfaction.

2. Geico

Geico provides commercial auto insurance in many states and is a reputable, affordable option. They offer standard policies as well as coverage for high-risk businesses. Geico is a subsidiary of Berkshire Hathaway, so they have strong financial backing. Their website and mobile app make managing your policy a breeze.

3. Progressive

Progressive writes commercial auto policies in most states at competitive rates. They provide all the standard coverages, plus extras like rental car reimbursement. Progressive offers discounts for safe drivers and businesses open 24 hours. They allow customers to start a quote online, over the phone, or with an agent.

4. Liberty Mutual

Liberty Mutual is one of the largest insurers in the U.S. and a stable choice for commercial auto coverage. They offer standard policies, fleet insurance, and coverage for high-risk businesses. Liberty Mutual provides additional benefits like roadside assistance, loaner cars, and new car replacement. They are known for high customer satisfaction and claims handling.

5. Travelers

Travelers provides commercial auto insurance for businesses of all sizes. They offer competitive rates, standard and customized coverage, accident forgiveness, and new car replacement. Travelers is one of the oldest and largest insurers in America, so they have exceptional financial stability. They provide innovative tools to help businesses improve fleet safety and reduce costs.

READ ALSO: Does Auto Insurance Follow The Car or The Person?

Comparing Coverage and Rates From the Top Providers

The top commercial auto insurance companies offer similar coverage types, but rates and service can vary. When comparing options, look at:

1. Coverage

The basics you’ll want include:

  • Liability: Covers injuries or damage you cause to other parties. Required in most states.
  • Collision: Covers damage to your vehicle from an accident.
  • Comprehensive: Covers non-accident damage like theft, vandalism or natural disasters.
  • Underinsured/Uninsured Motorist: Covers costs if an at-fault driver lacks enough coverage.
  • Medical Payments: Covers medical bills for you and your passengers after an accident.

Check that the coverage limits and deductibles meet your needs. Higher limits and lower deductibles cost more but provide better protection.

2. Discounts

Ask about ways to lower your premium like:

  • Safe driver: For drivers with clean records. Can save up to 10-15%.
  • Multi-policy: Bundle with other policies like business insurance or workers comp. Save up to 20%.
  • Safety features: For vehicles with anti-theft devices, backup cameras or stability control. Save 5-25%.
  • Driver training: For drivers who take defensive driving courses. Save up to 10%.

3. Cost

Get quotes from multiple companies to compare. Rates are based on factors like:

  • Your location and business type. Urban areas and high-risk industries like transportation or construction pay more.
  • Driver age, experience and records. More experienced, accident-free drivers save the most.
  • Vehicle make, model and use. Higher-value vehicles and those used for transporting goods cost more to insure.
  • Coverage amounts. Higher limits and lower deductibles mean higher premiums.

READ ALSO: Navigating Florida Auto Insurance Laws: A Complete Guide

Factors That Affect Your Commercial Auto Premiums

The premiums you pay for commercial auto insurance coverage depend on several key factors such as. 

1. Type of Vehicle

The vehicles you use for business purposes play a significant role in your premium costs. More expensive vehicles, especially those that are targets for theft like cargo vans, will have higher premiums. Vehicles with a higher accident rate, such as large trucks, also increase your premiums.

2. Number of Vehicles

The more vehicles you insure, the higher your commercial auto premiums. Each vehicle represents an additional risk to the insurance company. If you have a large fleet of vehicles, you may be able to get a discount for bundling multiple policies together.

3. Type of Coverage

The amount and types of coverage you choose directly impact your premiums. Higher liability limits, comprehensive and collision coverage, and additional coverages like roadside assistance will increase your costs. Only choose the coverage you truly need for your business to help minimize premiums.

4. Location

Where your business vehicles are located and primarily operated can affect your rates. Urban areas typically have higher premiums due to increased traffic and accident rates. Rural areas usually have lower premiums. The area’s overall crime rates can also impact premiums, especially for cargo vehicles.

5. Driver Profiles

The age, experience, and driving records of your commercial vehicle operators have a significant bearing on your premiums. Younger, inexperienced drivers are considered higher risk, as are drivers with a history of accidents or traffic violations. Requiring drivers to take safe driving courses and maintaining a strong driver selection/review process can help lower premiums.

Keeping these key factors in mind and making choices that lower risk can help reduce your commercial auto insurance costs over the long run.

READ ALSO: What is Full Coverage Auto Insurance?

How to Get the Best Rate on Commercial Auto Insurance

Here are some tips to help lower your premiums:

1. Build your credit score

Insurance companies will check your business’ credit score when determining your rate. A good score can save you money. Pay bills on time and check your credit report for errors.

2. Maintain a good driving record

Your driving history and the history of anyone driving your commercial vehicles will impact your rate. Obey traffic laws, don’t get tickets, and avoid accidents whenever possible. Some insurers may drop you if there are too many violations or claims.

3. Consider coverage limits

Buy only the coverage you need. Higher limits mean higher premiums. As a small business owner, you may be able to lower costs with more basic coverage limits. But make sure you have enough to protect your assets in the event of an accident.

4. Bundle with other policies

If you have other business policies like general liability or property insurance, bundle them together with the same company. Bundling multiple policies can qualify you for a multi-policy discount of 10-30% off your premiums.

5. Increase your deductibles

The higher your deductibles, the lower your premiums will be. Raising your collision and comprehensive deductibles to $1,000 or $2,500 can lower your costs by up to 40% while still providing good coverage. Just make sure you can afford the deductibles in case of a claim.

6. Ask about discounts

Don’t leave money on the table. Inquire about any discounts for safety features like anti-theft devices, for driver training, for years in business, affiliation with certain organizations, and more. Every dollar in discounts means more money in your pocket.

Conclusion

Comparing quotes and negotiating the best deal will take time, but the potential savings make it worthwhile. With some patience and the right strategy, you can get the most affordable rate on commercial auto insurance for your business.

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