Business auto insurance protects vehicles used for business purposes. It can be used for vehicles that are owned, leased, or hired by a business, as well as for employees who drive their own vehicles.
A commercial auto insurance policy is essential for businesses that rely on vehicles to complete work tasks. Having business auto insurance protects the company’s assets and offers financial protection.
Coverage usually entails:
- Liability Coverage – covers bodily injury and property damage caused by a company-owned vehicle.
- Collision Coverage – covers the fees associated with repairs or replacing a company vehicle that is damaged in a collision with another vehicle or an object.
- Comprehensive Coverage – covers damage to a company car caused by theft, vandalism, fire, natural disaster, or other events unrelated to a collision.
- Uninsured/Underinsured Motor Coverage – covers a business vehicle involved in an accident with someone who either has no insurance or does not have enough insurance coverage.
- Hired and Non-owned Auto Coverage – provides coverage for a business when an employee drives a rented, leased, or borrowed car for business purposes. It can also cover legal expenses if an employee is involved in an accident or if an employee is held liable for another person’s property damage or injury.
What Factors Determine the Price of Business Auto Insurance?
Various factors determine the cost of business auto insurance. Insurance providers will consider these elements when determining the premium amount for a policy.
- Business Type – Insurers will look at what kind of tasks your business performs when determining the costs of an insurance premium for business auto insurance. Some companies may be considered higher risk depending on how often they plan to have vehicles out on the road.
- Vehicle Type – Insurers will want to know the make, model, year, and value of the vehicles that a company wants to have covered with business auto insurance. The more expensive the vehicle – the higher the premium may be.
- Number of Vehicles – The more vehicles that you want to be covered with business auto insurance, the more you may be paying in terms of a premium. The size of your company fleet can impact risk exposure.
- Driving History – Employee driving records can be used as a significant factor in determining the cost of business auto insurance. A history of accidents or traffic violations can lead to higher premiums.
- Coverage Limits – The extent of coverage limits and policy limits selected by the company can indicate whether the business will pay a higher premium. Higher coverage limits and additional coverage will cost more.
- Location – The location in which the company vehicles are located and operated will play a part in the cost of business auto insurance. Busy cities tend to come with higher accident rates or theft, therefore leading insurers to issue higher premiums.
- Claims History – If a business has a history of frequent claims, it may be considered a higher risk.
Biscayne Risk and Insurance Group: For All Your Business Insurance Needs
Let Biscayne Risk and Insurance Group act as a partner for safeguarding your business assets. We offer comprehensive coverage through our business insurance. We can tailor your coverage to meet the unique needs of your business.
We also have business auto insurance for your cars, trucks, and more! Our professional insurance experts understand that you want to protect your fleet of vehicles to keep your business in great financial standing.
Ask one of our team members about our personalized quotes! We’ll help you to determine which of our business auto insurance solutions is right for you.
Contact Biscayne Risk and Insurance Group to learn more about our coverage options. We’re excited to begin working with you!