Cheap Commercial Auto Insurance: How do I get the best rate?

When shopping for cheap commercial auto insurance, there are more factors to consider than just the price.

There must be a balance between affordability, quality of coverage, and getting a policy from a reputable insurance company with a solid financial standing.

Other factors influence how cheap your rate is. are other factors that influence how cheap your rate is. Your age, location, driving record, and credit score can fluctuate the price of your commercial car insurance.

After researching and comparing several commercial auto insurance companies, we compiled a list of the most affordable companies with the best financial strength, reputation, and insurance products in 2022.

The Basics of Commercial Auto Insurance

Commercial auto insurance is a form of coverage that covers vehicles used for business purposes.

Commercial auto insurance differs from semi-truck and tractor-trailer insurance. The types of vehicle covered by a commercial auto policy are:

• Cars
• Vans
• Box trucks
• Food trucks
• Service utility trucks
• Pickup trucks

Some professions that typically need a commercial policy are contractors, landscapers, HVAC professionals, and food truck vendors.

If you are using your vehicle for business but only have a personal auto insurance policy, your insurance company may not offer any coverage if you are in an accident. You even risk losing your personal auto coverage, so you must obtain a commercial vehicle insurance policy.

Commercial Auto Insurance vs. Personal Auto Insurance

Is commercial auto insurance cheaper than personal auto insurance? A commercial policy is typically more expensive than a standard personal auto policy because more property damage liability risk exists.

If you are transporting goods or people in exchange for money, your insurance company’s risk is higher. The cost of the vehicle is typically higher as well, especially vehicles modified for business use, such as an HVAC or food truck.

Since the insurance company may have to pay out much higher costs in damages and injuries after an accident, the premiums are usually higher. Various factors will determine the cost of your premiums, such as if you are insuring a fleet of commercial vehicles, how long your business has been open, and your driving records.

However, the risk of driving without a commercial policy while conducting business is not worth trying to save a few bucks.

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Commercial Vehicle Insurance Discounts

There are a few discounts available to those seeking a commercial auto insurance policy. Those discounts include:

• Business Experience Discount. Customers with three or more years in business could receive a commercial discount.
• Personal Vehicle Insurance Discount. Some insurance companies will discount you if you have personal and commercial policies.
• Defensive Driving Credit. Although possessing a valid CDL will not automatically qualify you for a discount on your commercial car insurance, you could be eligible for a defensive driving credit with your professional driving status.

Several other discounts may be available to you, including:

• Continuous coverage discount
• Paid in full discount
• Paying electronically
• Multi-vehicle policy discount
• Paying yearly premium in full

Tips for Getting the Best Commercial Auto Insurance Rates

There are several ways you can obtain the cheapest commercial auto insurance rates. Some things inherently lower your insurance rates. A construction business that operates multiple commercial vehicles will have a higher insurance rate than an accountant who occasionally runs errands. Your location also dictates your premiums.

Below is a list of things that affect your rates:

Driving History

Driving history is one of the most critical factors that an insurance company looks at to determine your insurance premiums. Companies typically look at the past three years of your driving history, including accidents and moving violations.

Vehicle Type

Your vehicle’s age, size, and purpose will influence your commercial insurance premium. A rarely used old box van will cost less to insure than a frequently used new cargo van.

Coverage Needs

The more coverage you need for your business, the more your premiums will cost. State minimum liability auto insurance is the cheapest option for your business vehicle.

The Best Commercial Vehicle Insurance Companies

Although several car insurance companies offer cheap business vehicle insurance, these hand-picked companies meet the market’s best value, coverage, and reputation ratings.

Cheapest Overall Commercial Auto Insurance Company: State Farm

State Farm is the largest car insurance company in the United States and offers some of the most competitively priced commercial vehicle products.

State Farm has very few eligibility restrictions, and their rates do not climb much when you add more coverage.

They have several excellent commercial auto insurance packages, including:

• Commercial Auto Insurance. Coverage for all the cars, trucks, cans, and vehicles you use for business purposes.
• Commercial liability Umbrella Policy. Adds protection against lawsuits that could exceed your policy limits.
• Business Owner Policy. Combines property and liability coverage into one package.

You can also get worker’s compensation and builder’s risk insurance with the company.

Investopedia has ranked State Farm insurance as their top choice for small business insurance coverage.

Best Bad-Credit Commercial Auto Insurance Company: Farm Bureau

Farm Bureau has the cheapest auto policies for those with poor credit scores, including commercial vehicle policies for business owners. On average, customers with poor credit can get 12% cheaper rates from Farm Bureau than its competitors.

In every state, you can find Farm Bureau as the parent company American Farm Bureau Federation operates affiliated insurance companies throughout the country as individual entities.

Farm Bureau has a great suite of commercial auto insurance policies, including their BusinessMax Advantage insurance. This policy keeps your business safe during unexpected situations and are tailor-made to the needs of your business.

They also have an employment practices liability coverage policy that defends your business against employment-related claims, such as discrimination and other wrongful employment acts.

Rock-Bottom Cheapest Commercial Auto: Geico

Geico has cheap commercial vehicle insurance rates and offers many products to keep your business running and protected.

Geico is a solid choice if you work for a rideshare business, such as Lyft or Uber. Food delivery services, such as DoorDash or Postmates, are also covered under Geico’s rideshare policy, and their coverage starts at $6 per month.

Geico also offers standard commercial auto coverage, including general liability insurance and bundled business owner’s policies.

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Getting the Cheapest Rates on Your Commercial Auto Insurance Policy

Though it can be tempting to sign up for the cheapest available policy, shop around and ensure you get high-quality coverage that meets your business needs.

You don’t want to skimp on commercial auto insurance. If you are operating a business with a commercial vehicle, personal auto insurance may not cover you if you are in an accident, and you could lose your personal policy.

You can do several things to lower your insurance rates, such as maintaining a good driving record and showing continuous insurance coverage over several years.

Leveraging insurance discounts can dramatically lower your commercial vehicle policies.

Several good insurance companies offer commercial policies, but State Farm has the lowest rates with the best coverage. Rates can vary depending on your situation, so shop around and get several quotes for your business, including quotes from local insurance companies in your area.

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