Commercial Auto Insurance
Commercial auto insurance covers vehicles used for business purposes and those operating the equipment. There are varying types of commercial auto policies, and the cost of coverage depends on several factors, including deductible amounts, driving history, and location.
As with any insurance, a commercial auto policy provider will analyze the risk associated with your business and determine the type of coverage they are willing to provide and how much it will cost.
What Determines the Cost of Your Policy?
Similar to personal auto insurance coverage, your insurer will look at several factors to determine the cost of your commercial auto policy.
- Type of Coverage: Providers offer several types of commercial auto policies (for example, comprehensive coverage vs. hired and non-owned) that vary in cost. Choosing the right coverage for your business is essential in keeping expenses manageable.
- Deductible: Lower deductibles often come with higher premiums, whereas if your business is comfortable with a higher deductible, you may pay less on a yearly or monthly basis.
- Demographics: Age and gender often impact insurance rates. Providers inevitably see young drivers as riskier.
- Driving History: Does your business or the driver on the policy have a history of accidents or tickets? If so, your insurance premiums may be on the higher end.
- How Often You Drive: Overall, the less a car is driven, the less opportunity for risk. Businesses that infrequently require the use of vehicles will have less expensive auto policies.
- Where You Drive: Parking or operating company vehicles in dangerous areas (due to crime, weather conditions, etc.) leads to higher cost.
- Type of Vehicle: The type of vehicle on the policy is a significant determining factor in the cost of coverage. Larger vehicles, such as trucks and semis, are more expensive to insure due to the inherent risk of operating a vehicle of that size.
Crafting Your Policy
In conclusion, an experienced commercial insurance professional will craft the policy to best suit the needs of your business.
Please contact Steve Longenecker (303-808-9351, x2) at Mountain Insurance: Longmont to discuss your business insurance coverage options in Longmont, CO, and our neighboring communities.
We give out $25 gift cards for referrals that become our insurance clients.
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