Commercial Auto Insurance
Need commercial auto insurance for your business? Jupiter Auto is proud to have partnered with Progressive to offer this important coverage.
Who Needs Commercial Auto Insurance?
If you operate a business, and if that business uses at least one vehicle, you need commercial auto insurance.
- Do you transport clients or provide taxi services?
- Do you transport equipment or materials?
- Do you provide delivery services?
- Do you operate construction vehicles?
- Do you tow other vehicles?
If your business uses a vehicle to engage in any of these activities, you need commercial auto insurance. This is true whether you’re running a small business with a single vehicle or a larger company with an entire fleet. It’s also true whether or not your business owns the vehicles.
Personal auto insurance policies typically exclude commercial use, so it’s important to understand that a personal policy likely won’t provide coverage if you or one of your drivers gets into a crash while the vehicle is being used for work purposes. Don’t put your business at risk. Make sure you have the right insurance.
Many types of businesses need commercial auto insurance. These are the key industries that we insure:
- Business Auto Insurance
- Construction and Contractor Fleets
- Delivery Drivers Insurance
- Taxi and Limo Insurance
- Truck Insurance
- Tow Truck Insurance
What Does Commercial Auto Insurance Cover?
Many of the coverages provided by commercial auto insurance are similar to what you’d find in a personal auto insurance policy. The two primary coverage types include:
- Liability for property damage
- Liability for physical injury and death
It’s also smart to consider additional coverages to protect your business from common auto risks. The following coverages are common in both commercial policies and personal polices:
- Uninsured and underinsured motorist coverage in case a driver with little or no insurance hits your vehicle
- Collision coverage to provide protection to your vehicle in case you or one of your drivers is responsible for a crash
- Comprehensive coverage to provide protection against other risks, such as theft and vandalism
In addition, businesses may need additional coverage types that are usually not found in personal policies. These can include:
- Loading and unloading liability to protect against property damage and liability for physical injury occurring during the process of loading or unloading items
- Hired and non-owned insurance to cover vehicles that are used for business purposes but are not owned by the company, such as those that are rented or are owned by employees
- Commercial truck insurance for large trucks, along with coverage for cargo, non-owned trailers and other related risks
- Rental reimbursement with downtime to protect you against business interruption and lost income
How Much Does Commercial Auto Insurance Cost?
Commercial auto insurance is sometimes more expensive than personal auto insurance. This can be true for a couple of reasons.
One, there are more coverage types because businesses have more risk exposures. Many businesses need coverage to apply to all of their employees, for example, and they may also need coverage to apply to multiple vehicles, including those owned by employees.
Two, the limits may be higher. Some commercial vehicles, such as large trucks, are most expensive to insure. Higher limits may also be needed to protect the business. A business may need $1 million in liability coverage, for example, while individuals can often get by with much lower limits.
This doesn’t mean that your limits have to be exceptionally high, however. Some business types have fewer risks and therefore enjoy lower costs. If you only need one vehicle insured for one driver, for example, you will pay less than a company that needs to insure a fleet.
Companies can also keep their rates down by avoiding accidents.
- Practice safe driving habits whenever you drive.
- Encourage safe driving practices among your employees, such as avoiding distractions.
- Verify that your employees are safe drivers with clean driving records.
Additional discounts may be available, so talk to your insurer to see if you qualify for any.
What Are the Commercial Auto Insurance Requirements by State?
At the very least, commercial vehicles will need to meet the state’s requirements for minimum liability coverage. These are the same requirements that apply to personal vehicles, and it’s usually expressed in three numbers: the first refers to the minimum liability coverage for injury or death to one person, the second refers to the minimum liability coverage for injury or death per crash, and the third refers to the minimum liability coverage for property damage. These are the requirements for the following states:
- Alabama: $25,000/$50,000/$25,000
- Arkansas: $25,000/$50,000/$25,000
- Georgia: $25,000/$50,000/$25,000
- Illinois: $25,000/$50,000/$20,000
- Indiana: $25,000/$50,000/$25,000
- Oklahoma: $25,000/$50,000/$25,000
- Tennessee: $25,000/$50,000/$15,000
- Texas: $30,000/$60,000/$25,000
However, in order to protect the company and its assets, many business owners opt for higher limits. For example, if you’re operating a business in Tennessee, where the minimum liability coverage for property is $15,000, what happens if you or one of your drivers causes a multicar crash? The costs could easily exceed the minimum coverage, and your company could be responsible for paying the difference. For this reason, many business owners secure higher limits.
Additionally, coverage for crashes caused by uninsured or underinsured motorists may be required or at least highly recommended, depending on the state. Despite laws requiring insurance, many drivers go without coverage. If one of these drivers hits you, you’ll need a way of paying for the damages so you can get back to business.
On top of the minimum liability coverage discussed above, some states have additional insurance requirements for some commercial vehicles. These requirements may apply in the following cases:
- Vehicles that carry a large number of passengers
- Vehicles that transport hazardous materials
- Certain types of vehicles, such as those over a certain weight
Ready to protect your business with great commercial auto coverage?
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