Having corporate cars on the road is one of the major dangers of being in business—it means handling risks. Every time a delivery of goods, a service, or a ride-share run takes place, there is always a risk of an accident. Therefore, commercial auto insurance is absolutely required. This insurance handles damages, liabilities, and medical expenses; therefore, the business does not have large sums to cover from pocket.
How much does it cost, but is it worth it? Let us go over it.
How Much is Commercial Auto Insurance Priced?
The number of drivers, kinds of coverage, types of businesses, and uses of the vehicle all affect commercial auto insurance costs. Per month per vehicle, companies usually spend $75-$200. Additionally, for large fleets or in high-risk industries, it may mean extra costs.
Here’s a rough breakdown:
- For small businesses: $900 – $3,000 p.a.
- For medium businesses: $3,000 – $10,000 p.a.
- For large fleets (over 10 vehicles): Costs vary remarkably, frequently over $20,000 per year.
If your business is in the line of ridesharing, for example, Uber or Lyft, you will expect to pay more. Because, for insurance companies, rideshare drivers are typically viewed as high risks because they spend more time on the road. The good news? Many insurers now offer specialized policies for rideshare businesses that balance cost with coverage.
What Affects the Cost?
Not all businesses pay the same for commercial auto insurance. Here’s what influences your rates:
1. Type of Business
A florist delivering bouquets pays less than a construction company hauling heavy equipment. The risk level of your industry plays a major role in pricing.
2. Vehicle Type
As small sedans are normally less expensive to insure when compared to large delivery trucks and tow trucks, here again, the rule of thumb is the bigger the vehicle, the more damage it can potentially cause in the event of an accident; thus, the premium increases.
3. Driving History
A clean record? Lower rates. Multiple accidents or violations? Expect to pay more. Insurance companies reward safe drivers with better premiums.
4. Coverage Level
Basic liability insurance costs less, but it only covers damage to others. Full coverage, including collision and comprehensive, costs more but protects your business better.
5. Location
Where your business operates also impacts pricing. Urban areas with heavy traffic usually have higher premiums than rural locations. If you’re looking for commercial car insurance Florida, expect rates to vary depending on the city.
Why Commercial Auto Insurance is Worth It?
Some business owners attempt to mix personal auto insurance with their work vehicles. Big mistake! Losses incurred as a result of incidents occurring during the course of business cannot be compensated by personal insurance. If your employee meets with an accident while delivering supplies or wares, then it could possibly amount to thousands of dollars in damages against you.
Here are some reasons commercial auto insurance would be worth every penny:
1. Liability Protection
Accidents do happen. If one of your drivers causes an accident, then liability insurance pays for the injured persons and property damage to others. Miserably lacking it, your business shall be faced with lawsuits and huge financial burdens.
2. Vehicle Damage Coverage
In case of an accident involving your working vehicle, full coverage will take care of the repair or replacement for you. Hence, this allows your firm to operate without any substantial loss.
3. Medical Expense Coverage
Medical bills can be subject to reimbursement under commercial insurance if employees or passengers sustain injuries while working. Thus, saving your business from large out-of-pocket treatment expenses.
4. Rideshare and delivery coverage
Accidents while driving for Uber and Lyft, or for other food delivery services, are not covered under personal auto insurance. There’s a special rideshare insurance that fills this gap and ensures total protection while out on such work assignments.
5. Legal protection
If uninsured, a simple accident can lead to an economic drain on your business defending itself in court. In contrast, with commercial auto coverage, your insurer pays for legal representation and settlements.
Who Needs Commercial Auto Insurance?
Not sure if you need commercial auto insurance? If your business uses vehicles for any of the following, you definitely do:
- Delivery Services (food, flowers, furniture, etc.)
- Construction and Contracting (contractors, electricians, plumbers)
- Rideshare and Taxi Services (Uber, Lyft, private taxis)
- Landscaping and Maintenance (gardening, cleaning services)
- Freight and Trucking (semi-trucks, moving companies)
- Sales and Client Visits (traveling sales reps, consultants)
Even a single company car is worthy of insurance. Without one, an accident could exceed even the cost of the insurance itself.
What’s the Difference Between Personal and Commercial Auto Insurance?
Most business owners assume that personal auto insurance is good enough. But if they are using the vehicle for work, then a personal auto policy would not provide coverage for accidents.
| Feature | Personal Auto Insurance | Commercial Auto Insurance |
| Covers work-related accidents? | No | Yes |
| Covers employees driving company cars? | No | Yes |
| Covers high-risk activities like delivery and rideshare? | No | Yes |
| Legal protection for business lawsuits? | No | Yes |
Get the Right Coverage with Skylake Insurance!
Deciding upon the appropriate commercial auto insurance can be quite an overwhelming venture. With so many options and prices available, how can one know what is best for the business? That is where Skylake Insurance steps in.
We are specialists in commercial car insurance Florida and assist businesses big and small in obtaining proper protection. Whether it is a delivery service, fleet management, or a rideshare service, we have the correct policy for you.
Start comparing today! Get a free, no-obligation commercial auto insurance quote.
Final Thoughts
Insurance may appear to be an added expense, but it’s not having it that’s more expensive. Auto insurance for commercial vehicles is your security blanket. You drive free of worry knowing legally and financially that you are looked after, no matter what happens. The right commercial auto insurance ensures that your business stays steady on the road whether it operates one or a hundred cars.
Need expert guidance? Skylake Insurance is here to help. Get covered today and drive with confidence. Contact us today to learn more.
