HOW MUCH IS COMMERCIAL INSURANCE? For Trucks, Cars & Ubers

how much is commercial insurance
Merchant Maverick

If your company requires vehicles, you must also budget for commercial auto insurance. Examining the factors that influence commercial auto insurance costs can assist you in budgeting for this frequently significant expense. Before getting quotes from auto insurance companies, gather information about the average distance traveled, cargo value, driving record of your staff, and types of vehicles you intend to purchase. We will look at how much commercial insurance is for a cargo van, a truck, an Uber, a car, semi-trucks, and a box truck.

How Much is Commercial Insurance?

A monthly premium for a business owner’s policy, which includes both commercial liability insurance and commercial property coverage, ranges between $60 and $85 per month. If you have employees, you must provide workers’ compensation to protect them in the event of an injury or other major loss while on the job, as required by law.

Of course, these are only the fundamental components of any insurance policy. The specific elements of coverage required to protect your business will be determined by the specifics of your industry and the coverage limits you establish.

Although the average cost of general liability insurance is low, liability coverage may not be the entirety of your insurance policy. In addition to the basics, professional liability, and commercial property coverage, you may want to consider the following insurance policies to protect your business:

  • Cyber liability insurance
  • Business interruption insurance
  • Liquor liability insurance
  • Special event coverage
  • Errors and omissions coverage

You most likely already have personal auto insurance, but it’s important to understand that your provider may deny claims involving a vehicle used for business purposes. If you (or your employees) will be driving while on the job, you should also get a commercial auto policy.

How Much is Commercial Insurance for Cargo Van?

For a $1 million liability coverage, the average cost of commercial Cargo Van insurance is $275 per month or $3,300 per year. However, keep in mind that providers provide safe driving discounts and allow customers to get cheap commercial van insurance on their cargo vans. If you meet the requirements, your commercial cargo van insurance will be reduced by 5% to 15%. Aside from the factors mentioned above, the type of cargo also influences how much cargo van insurance costs.

How Much is Commercial Insurance for a Truck?

Commercial truck insurance rates can vary depending on the insurance company and the type of coverage you obtain. General liability insurance typically costs between $750 and $7,000 per year. This gives you a $1 million coverage limit.

Trucking liability insurance ranges between $2,500 and $4,000 per trucker. This will cover at least $750,000 for each driver. Non-trucking liability insurance ranges from $450 to $5,000 per trucker and covers a quarter of a million dollars.

The annual premium for bobtail insurance is estimated to be around $450. This policy has a $1 million coverage limit.

Physical damage insurance operates uniquely. Insurance companies typically cover the cost of damage to your truck, so there is no set minimum coverage. As a result, the annual premium rate is based on the value of the truck.

How Much is Commercial Insurance for Uber?

Uber commercial auto insurance can range from $1,200 to $2,400 per year or more. Rideshare insurance is a less expensive option, ranging from $10 to $350 per year depending on your location and insurer. Rideshare coverage is a type of commercial insurance that bridges the gap between your personal auto policy and the coverage provided to drivers by Uber and other rideshare companies.

Accidents you cause while driving for Uber are unlikely to be covered by your car insurance. If you haven’t disclosed that you use your car for business, your insurer may cancel your policy. Before you start driving for Uber, you should notify your commercial insurance company of your plans and find out what you need to do to keep your policy valid.

Whenever their app is active, Uber provides some level of commercial insurance to their drivers. When you accept a ride request and transport passengers, you are covered by Uber’s full insurance policy. This includes liability coverage of $1 million as well as uninsured/underinsured motorist coverage. If you have comprehensive collision coverage on your personal policy, it also includes this coverage.

However, while you’re waiting for a request, Uber’s coverage is limited. During wait times, you are only covered by liability insurance, which is limited to $100,000 per accident for bodily injury and $25,000 for property damage.

How Much is Commercial Insurance for a Car?

According to Progressive Insurance, the 2020 national average cost of commercial car insurance for both business auto and commercial customers is $187 per month. Rates for business autos in services (such as cleaners, restaurants, and shops) start at $188 per month, while carpenters and electricians pay an average of $186 per month.

According to Insureon, the average cost of commercial car insurance is $142 per month. That works out to $1,704 per year, though some insurance companies price policies on a six-month basis.

Insureon’s premium price for coverage is $1 million, but you’d need to get a quote to discuss policy options like comprehensive and collision coverage. Progressive claims that comprehensive and collision coverage are included, but the liability limit amounts must be determined through a quote.

As you can see, many factors influence the average cost of auto insurance, and each carrier prioritizes the options and coverages that it considers to be the most important.

How Much is Commercial Insurance for Semi-Trucks?

For owner-operators who lease their vehicles to a motor carrier, the average cost of commercial insurance for semi-trucks policies is between $3,000 and $5,000 per year. The average cost for an owner-operator with their own authority is $9,000–$12,000 per truck.

Semi-trucks commercial insurance policies for new authorities have increased in recent years and are now typically priced between $12,000 and $16,000.

How Much is Commercial Insurance for a Box Truck?

Box truck commercial insurance rates vary greatly from one company to the next. This is due to the fact that each business has unique risk factors. When determining insurance rates, insurance companies consider a variety of factors, and these details will influence your quote. Remember, the following ballpark estimate is just that: an estimate. Depending on your industry, your rates could be lower or higher.

Okay, now that we’ve established that box truck commercial insurance costs between $2,000 and $40,000 per truck per year. A rural business with a good loss record would be at the lower end of that range, while a business with tickets and accidents would be at the upper end. Your company could fall within this range, and where you fall depends on a variety of factors. Your company is unique, and just because a similar company in your area pays a certain amount for coverage does not mean your rates will be the same.

How to Get Cheap Auto Insurance?

Keeping a clean driving record is the best way to keep your car insurance costs low. Even one driver on your company’s policy who has an accident or a moving violation will raise your rates.

You can also save money by doing the following:

  • Get several quotes. Contact a number of insurance companies and brokers to obtain multiple quotes and compare providers and coverage limits.
  • Hire an experienced agent. The right agent can ensure that you have the appropriate level of coverage for your business needs, especially if you require specialty coverage such as tow truck insurance.
  • Combine your insurance policies. When you bundle commercial car insurance with other business insurance policies or personal auto coverage, you can usually get a lower rate.
  • Make use of telematics. Allowing an app or plug-in device to record detailed information about your driving habits—such as how fast and far you drive and how frequently you brake—can help lower your insurance rate, assuming you and your employees drive safely.
  • Pay your annual premium in advance. Some popular providers will reduce your premium by up to 15% if you pay in one lump sum rather than monthly installments.
  • Modify your deductibles. A higher deductible can help you save money on auto insurance. Simply ensure that you can afford to pay the deductible if you need to file a claim.

Choosing the Right Coverage

Don’t base your commercial insurance policy for a cargo van, a truck, Uber, a car, semi-truck, or a box truck solely on cost. While you want to get the best deal, it’s even more important to protect your company from the various risks that come with driving commercial vehicles.

It is critical to select adequate coverage protection, including adequate liability, comprehensive, and collision coverage that will pay for damage to your vehicle or replace it if necessary. You’ll also want to get rental coverage so that your business doesn’t come to a halt while your commercial vehicle is being repaired.

Remember that the best insurance isn’t always the cheapest; it’s the one that offers the most comprehensive financial protection for you and your family and is there for you when you need it.

Are Commercial Insurance Policies More Expensive?

A regular commercial auto policy is typically required for business-owned vehicles. It, like a personal auto insurance policy, covers both property damage and liability suits. Auto insurance is usually more expensive than personal auto insurance because claims are more expensive.

How Much Is a 2 Million Dollar Insurance Policy for a Business?

A $1 million / $2 million BOP policy for a small business costs an average of $1,217 per year, with a median of $638.

How Much Is a Million-Dollar Insurance Policy for a Business?

Small business owners typically pay a few hundred to $1,000 per year for $1 million in liability insurance coverage.

What Are the 4 Most Common Types of Commercial Insurance?

Here are the four types of commercial insurance that your company requires and why:

  • Insurance for your home.
  • Insurance for business interruption.
  • Commercial general liability insurance.
  • Insurance for cyber liability.

What Is Covered in Commercial Insurance?

Commercial insurance protects businesses, freelancers, and independent contractors from liability lawsuits, property damage, cyberattacks, and other potential disasters.

Commercial insurance:

  • Suits filed by clients
  • Theft and damage to property
  • Injuries to customers or employees
  • Unexpected occurrences

What Is an Example of Commercial Insurance?

Property, liability, and workers’ compensation are the most common types of commercial insurance. In general, property insurance covers damage to your company’s property, liability insurance covers damage to third parties, and workers’ compensation insurance covers injuries to your employees on the job.

Frequently Asked Questions

How much a month is a million dollar life insurance policy?

A $1,000,000 life insurance policy with a 10-year term costs $32.05 per month on average. A 20-year plan will cost you an average monthly premium of $46.65.

How can I get a $5 million dollar life insurance policy?

To be eligible for a $5 million policy, you must meet the insurance company’s age and income requirements. You might need to: Earn between $250,000 and $500,000 per year. The maximum coverage allowed by insurers is typically 10 to 20 times your current annual income.

Does life insurance give you money?

A life insurance policy is a legal agreement between you and an insurance company. In exchange for your premium payments, the insurance company will pay your beneficiaries a lump sum known as a death benefit after your death. Your beneficiaries are free to spend the money however they see fit.

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