Home » Is It Expensive to Insure Commercial Vehicles?
August 5, 2020

Is It Expensive to Insure Commercial Vehicles?

Several commercial vehicles parked next to each other in a rained on parking lot.

A lot of businesses own or use vehicles to transport equipment, travel between locations and complete other work-related activities. Unique insurance is needed for these vehicles, which can make money-conscious businessowners nervous. Thankfully, commercial auto insurance for work vehicles isn’t always expensive. You could pay as low as $600 a year to insure a single vehicle. On the other hand, you could also pay as much as $2,400 a year per vehicle. So, why is there such a large disparity between averages?

Commercial auto insurance considers a lot of aspects when it comes to calculating premiums. One of the main influences on your commercial auto insurance premiums is the cargo. If you are carrying heavy or hazardous cargo, you will likely pay more for insurance in order to compensate for the danger. Hazardous material and heavier vehicles can cause a lot of damage, so an insurance provider will want to make sure potential damages are covered. You may also pay higher rates if your vehicles are used to transport people, such as buses and taxis. Transporting other people, especially a large amount, puts you at a lot of risk liability-wise. If one of your commercial vehicle wrecks, you may be responsible for every injury the passengers incur because of the accident. This means higher coverage limits are required—thus higher premiums.

Other factors that influence the cost of your commercial auto insurance include:


Different states have different regulations and requirements when it comes to commercial auto insurance. If your business is located in an area with a high rate of crime or natural disasters, you may pay more for insurance in order to balance out the risk of your business filing a claim on the policy.

Travel Distance

Certain commercial vehicles such as freighters and eighteen wheelers often travel interstate. The farther your business’ vehicles travel, the more you may pay in commercial auto insurance to offset the risk.

Driving Record

It is not only the driving record of the insured that can affect the cost of commercial auto insurance. If you have multiple drivers covered to drive your vehicles, their driving records can have an affect on the cost of your insurance. Be sure to vet potential drivers carefully to make sure they’re trustworthy and have a clean driving record.

Coverage Limits

The higher coverage limits you have, the more you will pay. It’s important to have the right amount of insurance to completely protect your business’ assets, however.

Also Read: When Does Your Personal Vehicle Become A Commercial Auto?

Tags: commercial auto insurance

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