Commercial auto insurance cheaper than personal insurance

Commercial auto insurance and personal insurance has a thin line that affects the coverage. The business that owns a large fleet of vehicles tends to invest in commercial auto insurance while personal auto insurance focuses on a single person and provides coverage for them.

Commercial auto insurance is available by companies like Uber, or any ride-sharing enterprises that throw thousands of people onboard. The insurance covers medical and accidental claims. The commercial policy can be altered according to one’s requirement and it is quite expensive in comparison to personal auto insurance.

What is the average cost of commercial and personal auto insurance?

The average cost of commercial insurance starts from $1704 annually and with $140 monthly. The cost for commercial insurance is low due to the number of insured persons are high and companies pay hefty payments towards the same. The companies tend to pay higher premiums due to the millions of coverage if any uncertainties occur to driver or accident occurred. The cost for insurance varies depending upon the various factors such as driving record, the previous number of claims, and more.

What factors affect the cost of commercial auto insurance?

The price differs based on the premium and coverage you are obtaining in your commercial auto insurance. The insurance is given based on driving record, history, claims taken, and other factors that affect the commercial auto insurance. The coverage extends $500,000 to $1million in damages.

  • Purpose and use of vehicles.
  • Personal driving history of the driver.
  • History of insurance claims.
  • Depending on the weight of the vehicle.
  • Cost of the vehicle.
  • Make and model of vehicle.

What is personal auto insurance?

Personal Auto Insurance covers the cost of accidents through personal reasons. The coverage includes commute from work and travels other than any work-related issue. The personal auto insurance coverage has limited coverage that doesn’t include any travel for business work.

What commercial auto insurance cover?

If you own a business with a commercial insurance policy that has maximum coverage and safeguards the lives of drivers. The insurance covers the following things such as

  • Drive clients and employees.
  • Transport of goods and pieces of equipment.
  • Towing and hauling.
  • Towing from the trailer.

Where you can buy commercial auto insurance?

Many car insurance companies offer commercial car insurance at great rates. The well-known companies for commercial car insurance are GEICO, Progressive, All-State, State Farm, and Liberty Mutual. The car dealerships like Baker Nissan can suggest to you the best insurance company for commercial auto insurance.

What is the coverage included in commercial car insurance?

The commercial car policy covers property damage, bodily injury liability, medical payment coverage, comprehensive and collision coverage.

Apart from this, the commercial car insurance coverage includes such as

  • The cost of damages incurred by the loading and unloading of a commercial vehicle.
  • The supply, tools, and equipment coverage replacement is covered under this insurance.
  • The non-owner coverage covers the employee and driver’s insurance.

Why a company needs commercial auto insurance?

The purchase of commercial auto insurance with higher coverage of the vehicle considering few situations would be fruitful.

  • It will ensure the large fleet of vehicles along with the driver.
  • It increases the liability coverage of the auto.
  • If you own the company in partnership with a large employee count should own the commercial auto insurance.
  • It increases the liability of personal coverage of commercial insurance.
  • The insurance comes as quite expensive in comparison to personal insurance.
  • It aids in safeguarding the lives of employees covered under the companies commercial auto insurance policy at I-5 Motors.