Commercial Vehicle Insurance Cost - 2025 Prices

When vehicles are central to your business, commercial auto insurance rates are a major consideration for your budget. Commercial auto insurance costs are affected by many factors, including the types of vehicles your company owns and the risks involved in its driving operations. Understanding the factors that influence your business's commercial auto insurance policy premiums can help you save money in the long run.

Personal car insurance policies won't protect company vehicles that are used for work-related purposes, such as deliveries or transportation. Fortunately, a local independent insurance agent can help your business get equipped with an affordable commercial auto policy. These agents know where to find competitive rates from carriers that don't sacrifice quality or service. But first, here's a breakdown of many of the factors that can impact commercial vehicle insurance costs.

What Is the Average Cost of Commercial Auto Insurance?

The cost of business auto insurance can vary considerably by carrier, location, and other factors. However, the current average cost of commercial auto insurance is $1,762 per year or $147 per month for small businesses. An easy way to get the best commercial car insurance rates is by bundling each type of coverage for your business vehicles together in one convenient policy. 

Along with other aspects of business insurance, you can bundle your business's uninsured motorist coverage, collision coverage, comprehensive coverage, hired or non-owned coverage, and liability coverage. Your business's commercial auto policy must consider the vehicle types insured and the purpose of each company vehicle. Having commercial vehicle liability insurance as part of your business auto policy is critical to protect your company against the cost of third-party lawsuits related to claims of personal property damage or bodily injury. 

Average Commercial Vehicle Insurance Cost by Industry

Independent contractors tend to spend the least on commercial vehicle insurance, while for-hire transport truck drivers often pay the most. Regardless of your industry, an independent insurance agent can help you find cheap commercial auto insurance in your area.

Cost Factors That Affect Commercial Auto Insurance Rates

Many different factors can influence the cost of your business's commercial auto policy. Here's a closer look at some of the most common factors examined by many insurance companies when calculating business vehicle coverage premiums.

Policy coverage limits and deductibles

How much coverage your business needs influences the cost of its commercial auto policy. The more coverage required for your business vehicles, the more you can expect your policy to cost. The deductible amounts selected also influence your premiums. Lower deductibles lead to higher premiums, while higher deductibles can mean lower policy premiums. Just keep in mind that if you select higher deductibles, your business will have to pay more out-of-pocket each time you file a commercial auto insurance claim.

The driving history of all company drivers 

Insurance companies often have specific requirements when they underwrite policies, particularly for those who drive heavy-duty trucks such as tractor-trailers. Company drivers with several violations on their driving records may cost your company in terms of much higher premiums, and being a liability on the road or may entirely prevent you from getting the insurance you need. Hire qualified, skilled, claims-free drivers to reduce your rates and your risks.

The type of coverage you choose

If you buy each of your commercial auto coverages separately, you can typically expect to pay more than if you insure your business vehicles together under one policy. You can also reduce the cost of your premiums by bundling each of your business's coverages together for a multi-policy discount. Insurance companies also often provide bulk discounts depending on the size of your fleet.

How often your business vehicles are used

How often and how far your employees drive impacts commercial auto or commercial truck insurance costs. The more miles your fleet travels each year, the higher the risk of accidents, lawsuits, and other disasters. Insurance companies take this into account when they calculate commercial insurance rates.

Your specific industry risks

The risks involved in the nature of your business vehicles' operations can depend on your industry. For example, delivery drivers face different risks on the job than rideshare employees. Generally speaking, the more hazards typically involved in your line of work, the higher the cost of commercial auto insurance. Work with an independent insurance agent to obtain the proper coverage for your unique industry at the best available rate.

The types and number of business vehicles insured

The more vehicles your company needs to insure, the more coverage you'll need, and the higher your premiums are likely to be for commercial vehicle insurance. However, the types of business vehicles insured also impacts your coverage rates. Coverage for a small fleet of company cars can be a lot cheaper than for a large fleet of tow trucks or semi-trucks.

Your business's claims history

If your business has filed commercial auto claims in the past, you can expect your premiums to be higher as a result. Take precautions to help reduce your company's risk of needing to file claims in the first place. This can help keep your employees and your business safe and reduce your commercial auto premium rates at the same time.

How to Save Money on Commercial Auto Insurance

There are many easy ways your business can save money on commercial vehicle insurance. Comparing commercial auto insurance quotes with an independent insurance agent is one of the best ways to find the most affordable coverage in your area to begin with. Also, be sure to ask your agent or your insurance company about any commercial vehicle insurance discounts your business is eligible for.

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An Independent Insurance Agent Can Help You Find Affordable Commercial Vehicle Insurance 

Independent insurance agents have access to multiple commercial vehicle insurance companies, so they can shop and compare policies and rates for you. Your agent will present you only with quotes that represent the best overall blend of coverage and cost. And down the road, your agent can help your business file commercial vehicle claims and update your coverage as necessary.