What Factors Affect the Cost of Commercial Auto Insurance? 

Commercial auto insurance is necessary for businesses that rely on vehicles to operate. It may help manage the risks that come with driving for work. But like many business costs, insurance rates can vary widely.

Factors Affecting Commercial Auto Insurance Rates

Insurers consider various elements when calculating commercial auto insurance rates. The following are common considerations:

• Type of vehicle—A vehicle’s make, model, and purpose play a significant role in determining cost. For example, heavy-duty trucks for hauling materials generally have higher premiums than smaller passenger vehicles.

• Driving history—Drivers with clean driving records often have lower rates than those with accidents or traffic violations.

• Business use of the vehicle—How and how often a vehicle is used matters. Frequent long-distance driving or transporting hazardous materials may increase the likelihood of claims, raising premiums.

• Location—Drivers in rural regions often face lower premiums than those living in cities with higher traffic volumes and accident occurrences.

• Coverage limits and deductibles—Higher coverage limits offer more financial support in case of a claim, but they also usually mean higher premiums. Choosing a higher deductible, on the other hand, can lower monthly costs but increase out-of-pocket expenses after an incident.

• Claims history—A business’s past claims can influence future premiums. Multiple or costly claims may suggest greater risk to insurers, leading to higher rates.

Explore Commercial Auto Insurance

Bruni Insurance Agency offers tailored commercial auto insurance at favorable rates. Contact us today for a free quote.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.