The Best Commercial Auto Insurance Companies for 2022
commercial car insurance is a kind of car policy that protects vehicles used for business activities. If you frequently use your personal fomite for occupation, or your business owns a commercial vehicle, there is a dependable prospect you should have commercial car indemnity. Because personal car policy will not cover vehicles used for business, people across all industries—from construction to pizza delivery—make use of commercial car indemnity to protect themselves, their vehicles, and their businesses. This guidebook will cover all of the basics of commercial car insurance including coverage, requirements, and costs. Whether you are purchasing coverage for construction vehicles, a flit of taxis, or a personal car used frequently for business travel, this steer will give you the tools to find the right coverage. That said, if you are specifically looking to insure a truck, we recommend looking at our Best commercial Truck Insurance Guide. If you ’ re already conversant with commercial car insurance and equitable want to compare the best companies or get a quotation mark, below is a summary of our top recommendations. If you want to learn more about commercial car indemnity or need to refresh your memory on the basics, you ’ ll find the full scout below.
Interested in Discussing Options With an Agent Instead? Speak With an Agent Now progressive # 1 in commercial Auto Insurance Best overall countrywide # 2 in commercial Auto Insurance runner-up Farmers # 3 in commercial Auto Insurance Best for Contractors Geico # 4 in commercial Auto Insurance Best for Rideshare
Progressive (Best Overall)
progressive is our lead recommendation for commercial car policy and besides one of our top recommendations for truck-specific policies ( for more information on these policies, see our Progressive Commercial Truck Insurance review ). Progressive is flexible and accommodating in that they have customized coverage available and offer many discounts with their policies. They carry an A+ rating in fiscal strength from A.M. Best and an A+ denounce in customer satisfaction from the BBB. Progressive scored highly across all of the factors we consider. For more data, read our wax follow-up of Progressive commercial car indemnity.
Nationwide is our runner-up recommendation for commercial car indemnity. Their base business car policy covers everything you need, and they have several optional extensions to choose from. The company stands out in customer satisfaction and fiscal lastingness ratings, receiving closely A+ ’ randomness across the board. To top it all off, Nationwide offers steep discounts for customers enrolled in their real-time data monitoring program. The combination of their respective coverage options, elite customer satisfaction ratings, and potent fiscal strength makes it easy for us to recommend Nationwide for commercial car insurance. Read our full review of Nationwide commercial car indemnity for more details.
Farmers (Best for Contractors)
We rate Farmers as our top commercial car insurance ship’s company for contractors. With Farmers, contractors can get coverage for their business vehicles and the tools they transport inside them. And while they have elastic policy options in the area of commercial car indemnity generally, their policy options for contractors and subcontractors go above and beyond. In addition to being a big, well-established, and diverse firm, Farmers has strong fiscal ratings as well, receiving an A, A2, and A+ by A.M. Best, Moody ’ s, and S & P, respectively. Farmers is a full option for commercial car indemnity overall, but their expertness in tailoring policies for contractors means they are our clear choice for the construction diligence. For more information on Farmers, read our entire commercial car policy follow-up.
Geico (Best for Rideshare)
Geico is our top recommendation for delivery policy, which is policy for vehicles used by businesses that generate tax income transporting people. Examples include Uber or Lyft drivers, limousine services, and traditional cab cab companies. Geico is a solid option for commercial car indemnity coverage overall, rate well in our analysis across all key factors. But Geico ’ s unique coverage options for rideshare and bilious drivers make them stand out in that class. For anyone who does not know much about commercial car indemnity or needs a refresher course, this guide will make you an expert. here ’ s a summary of what we will cover. Click to jump ahead to relevant sections :
Understanding Commercial Auto Insurance
Before choosing policy for your commercial vehicles, wise buyers should spend some clock researching the coverage options and learning about the commercial car policy market. This section will cover the basics of commercial car insurance, including the coverage, costs, and requirements. Afterward, we ’ ll follow-up all of the top providers and what makes them stand out. besides, if you want to learn more about other forms of construction insurance policies, make certain to check out our arrant guide to the unlike types of construction indemnity.
What is Commercial Auto Insurance?
commercial car insurance is coverage that helps businesses that own and operate motor vehicles cover the price of property damages, vehicle repairs, medical expenses, and legal liabilities after a cover incident. commercial car policy is sometimes called business auto insurance or commercial vehicle insurance, but all of these terms refer to the same type of coverage—car policy for clientele vehicles. The coverage provided by commercial car indemnity is like to the coverage provided by personal car insurance policies, except it is specifically for vehicles being operated for business purposes. specific policies exist for the many types of commercial vehicles, including trucks, cement mixers, and many types of trailers.
How Does Commercial Auto Insurance Work?
A business owner can purchase commercial vehicle coverage for a unmarried vehicle or for an entire fleet. Before purchasing a policy, the business must define what coverage it needs and to what extent. He or she will work with a representative from the insurance company to determine the surveil elements of the policy :
- Coverage – the types of incidents, damages, and expenses that will be covered
- Policy limit – the maximum amount of money that the insurer can be required to pay on the policy
- Deductible – the out-of-pocket amount that the company must pay toward a claim before coverage becomes available
- Monthly Premium – the monthly cost of retaining the policy
Businesses should look for balance policies that combine adequate coverage and policy limits with reasonable deductibles and monthly premiums. once a business purchases a commercial car insurance policy, the policyholder begins to pay monthly premiums ( and possibly some fees at the begin of the compress term ). In return, the indemnity company agrees to pay for any damages, repairs, and aesculapian or legal expenses associated with a brood incidental, as described in the policy terms. After a collision, housebreaking, or early cover incident, the policyholder must call the insurance caller to “ file a claim ” and report the losses incurred. All insurance companies will require that you inform them within a few days of the incidental, and failure to report the claim in a seasonably manner could lead to the title being denied. If the total damage assessed exceeds the policy deductible and the incidental is indeed covered, then the insurance company is obligated to pay for damages up to the policy ’ s limit. For most commercial car indemnity companies, the policy limit applies to all costs on the policy, flush if multiple losses are incurred from distinguish incidents. If a company needs higher limits, they may purchase surfeit indebtedness coverage or an umbrella policy, which is separate from the commercial car policy policy, but will kick in once the policy limit of the commercial car policy is hit. When it comes time for the insurance company to “ settle the claim ” or pay for cover losses, not all insurers follow the same protocol. For example, in the case of an accident :
- Some insurance providers will require that you use one of their certified auto repair shops to assess and repair damages. Often, they will make payment directly to the shop and bill you for the deductible. This situation is actually ideal and involves the fewest transactions and prevents the shop from over-charging you.
- Other insurers will require that you get multiple price estimates from different auto repair shops if they are not a part of the insurer’s approved shop network.
- Depending on the extent of damages, some insurers may send representatives to evaluate the damages and estimate the cost of repair before approving repair estimates from a shop.
- Some insurers will also only reimburse costs after they’ve been paid by the policyholder, sending payment after the repairs have been made. This can be inconvenient, if not detrimental, for a business, depending on its cash flow. It’s best to avoid policies that are structured this way.
There are no laws that dictate how the policy provider will handle claims, thus make certain to review each supplier ’ sulfur method acting of settling claims and make certain that the process works for your clientele.
Who Needs Commercial Auto Insurance?
Do you need to purchase commercial car indemnity for your business ? Most states require that every register, operating vehicle carries car indemnity coverage. Whether a personal car indemnity policy or commercial car insurance policy is better suited for the vehicle depends on how it is used. If the fomite can be described by any of the follow, it is likely going to need at least the minimal sum of commercial car policy coverage :
- The vehicle is owned, rented, or leased by a business
- The vehicle is operated by employees
- The vehicle is not owned by the business, but it is used to conduct business
Regarding the third gear point, if an employee-owned fomite is alone used to commute to and from workplace or a speculate locate, and for an casual meeting with clients, then a personal car insurance policy may suffice. however if the vehicle is used frequently for permute, offsite meetings, and early business activities, it likely needs to be covered by a commercial car insurance policy. If the fomite does qualify as a commercial enterprise vehicle, a personal car policy policy may actually exclude coverage for an incident while the vehicle is being used for occupation. If you are uncertain about your particular site, it ’ s best to consult an agentive role. The claim character of coverage needed will depend specifically on how the vehicle is used for business ; but in cosmopolitan, if the vehicle is used for business, it will require some type of commercial car policy policy. RELATED Do your employees regularly exercise in the field ? The best field servicing management software will make schedule, dispatch, and billing a cinch.
Minimum Commercial Auto Insurance Requirements
If a fomite does need commercial car insurance coverage by law, what are the requirements ? Most states require that any record vehicle must be covered with indebtedness indemnity to pay for the price of bodily injury or property damage to others. Each state ’ s commercial car policy requirements will vary slenderly, but states will normally require that businesses meet at least the same minimum requirements as passenger vehicles. In California, to meet minimum requirements, drivers must carry personal car policy policies that blanket at least $ 15,000 for injury/death to an individual, $ 30,000 for injury/death to multiple individuals, and $ 5,000 for damage to property. Drivers must carry proof of indemnity and make it readily available to law enforcement. In New York, the liability coverage requirements for car indemnity policies are much higher. For each driver, the limits must be at least $ 25,000 for injuries to one person, $ 50,000 for injuries to multiple individuals, $ 50,000 for the death of one individual, $ 100,000 for the death of multiple people, and $ 10,000 for property wrong. New York besides requires drivers to carry no-fault and uninsured motorist indemnity. New York ’ s car indemnity requirements are among the most rigorous in the area. The web site DMV.ORG offers a resource to find car policy requirements by state for passenger vehicles ( keep in take care that business requirements may be slightly higher ). individually, if your caller transports products or people across state lines, your clientele will be discipline to Federal Motor Carrier Insurance requirements, imposed by the Federal Motor Carrier Safety Administration ( FMCSA ). last, it is actually possible to avoid purchasing commercial car policy by fulfilling the fiscal debt instrument that commercial car policy does. In California, there are three possible ways to meet the prerequisite, which are ( 1 ) a $ 35,000 cash deposit with the California Department of Motor Vehicles, ( 2 ) a Certificate of Self Insurance from the DMV, or ( 3 ) a security bond of $ 35,000. A commercial car policy policy has advantages over these options in terms of convenience and up-front costs.
What Does Commercial Auto Insurance Cover?
commercial car insurance policies cover a broad range of costs that may result from a numeral of different incidents. This section explores the details of commercial car policy coverage.
Different Types of Vehicles
As discussed above, commercial car insurance policies can cover vehicles owned by either individuals or businesses, angstrom well as diverse types of vehicles that are common to different industries. These include :
- Passenger Cars
- Vans, Pickups, and SUVs
- Cement Mixers, Haulers, Cranes
- Various Trucks
- Delivery Vans
- Tractor Trailers
commercial truck policy is a type of commercial car insurance policy specifically designed for trucks. For more information, be sure to check out our top-rated truck policy companies.
Bodily Injury Liability
Bodily injury indebtedness coverage is an essential part of commercial car insurance. It covers costs associated with bodily injury to others in an incident when an employee ( or other covered driver ) is at mistake. The cover costs could include checkup and rehab costs, lost wages, legal expenses, and even funeral costs in fatal accidents. We discussed above that many states require a minimum come of bodily liability indemnity. For example, bodily indebtedness requirements in California and New York are $ 30,000 and $ 50,000, respectively. Most commercial car insurers offer limits that are importantly higher. It is besides authoritative to remember that the quote limits for liability policies apply to each vehicle on the policy.
Property Damage Liability
property damage indebtedness coverage pays for the cost of damages to the property of others after an incidental caused by a cover driver. If another person ’ randomness vehicle or property is damaged, this part of the policy will cover the costs to repair or replace the damaged property. Damaged place could include buildings, vehicles, fences, mailboxes, landscape, or early items. property damage liability coverage is required in most states ; however, the necessitate limits are much lower than those for bodily injury liability. In California, the necessitate coverage specify is $ 5,000, and in New York, the specify is $ 10,000—just fractions of the bodily injury liability requirements. Because both property damage liability and bodily wound liability coverage are required in most states, they are frequently grouped together to form one vehicle indebtedness insurance package.
physical damage protective covering covers the substitution or compensate of vehicles and property owned by the policyholder after a cover incidental. There are multiple subcategories of forcible damage coverage, which define the types of incidents and damages that are covered. The types of physical damage coverage are :
- Collision – covers the cost of damages due to a collision or roll.
- Comprehensive – covers the cost of damages from anything other than a collision, including theft, fire, weather, or vandalism.
- Limited Comprehensive / Fire and Theft with Combined Additional Coverage (CAC) – usually intended for large trucks and construction vehicles and is a limited version of comprehensive coverage, covering a narrower range of incidents.
physical damage coverage only covers damages to the policyholder ’ second vehicles, so it is not required in most states. however, it is a useful component of any car indemnity policy to help avoid the high costs of repairing or replacing a vehicle after an incidental or larceny.
medical payments coverage pays for the costs related to injury of the policyholder, company employee, or any passengers of a cover vehicle in an accident. cover costs include medical bills, lost wages, and even funeral expenses. Most states won ’ triiodothyronine require this shape of policy but it is necessity if costly medical bills are to be avoided after a serious, shroud accident. sometimes, the insure ’ south health insurance will cover checkup bills after an accident, but not always. medical payments coverage will constantly apply, even if the hurt party is at defect for the accident.
Personal Injury Protection
personal wound protection ( PIP ) covers the costs associated with bodily injury of the policyholder, employees of the business, and passengers after a covered incident. While medical payments coverage will only cover aesculapian bills, PIP coverage will cover both aesculapian bills and lost wages for the insured and passengers after an accident. Whether the accident was the defect of the insure or a third party, personal injury expenses will be covered under PIP coverage. PIP indemnity is actually required in several “ no-fault states, ” which are : Delaware, New Jersey, North Dakota, New York, Florida, Kansas, Kentucky, Hawaii, Pennsylvania, Utah, Michigan, Massachusetts, Minnesota, Oregon, and Texas. PIP is normally alone available in no-fault states, and most, if not all, insurers will entirely allow businesses to carry either personal injury security or checkup payments coverage at the same time.
Uninsured Motorist / Underinsured Motorist
Uninsured and underinsured motorist indemnity is coverage designed to cover the costs associated with bodily injury of the policyholder, employee, or passengers after an incident with a person who isn’t insured. After an accident, the policy supplier of the at-fault-driver will pay for medical costs and place damage for every party. If the at-fault-driver international relations and security network ’ triiodothyronine insured, then this coverage will pay for the damages and medical costs. even though liability policy is required in most states, according to the National Association of Insurance Commissioners ( NAIC ), approximately one in every eight drivers is uninsured, which means there is a fairly high risk of accidents with uninsured drivers.
In addition to the identify commercial car policy policies that closely all insurers will offer, some companies will offer addition policies or coverage extensions, which increase the coverage that the policy provides. The coverage additions can add auspices against new situations and risks. Below is a list of extra commercial car insurance policy extensions that many policy providers offer :
- Roadside Assistance – This is a feature that some insurance providers allow businesses to include on their commercial auto insurance policies. It gives policyholders and employees the ability to phone for roadside help if a covered vehicle breaks down.
- Hired and Non-Owned Auto – This coverage covers rental vehicles and employee-owned vehicles while they are being used for business purposes.
- Named Insureds Coverage – This coverage may go by different names depending on the insurer, but its purpose is to provide coverage for specific individuals within the company regardless of the vehicle they drive. If they need to borrow or rent a vehicle, this coverage will apply the same level of coverage that their regular vehicle has.
- Rental Reimbursement – This coverage reimburses policyholders if they must rent a vehicle while their primary automobile is being serviced or repaired.
There are many extra coverage options and policy extensions for commercial car indemnity customers. Customers in specialize industries should seek insurers who offer coverage extensions or specialized policies that match their particular needs.
What Doesn’t Business Auto Insurance Cover?
commercial car policy can cover most drive incidents and vehicles for the majority of businesses. however, there are some grey areas and excluded situations that buyers should be aware of.
One obvious exclusion is for damages or injuries that are intentional. If person covered on the policy uses a cover vehicle to intentionally harm another person or to damage property, the policy company is not liable for damages and expenses.
Property of Others
Another very common exception standard to commercial car insurance policies is property belonging to others that is in the possession or manage of a cover individual. If a cover person is driving a cable car belong to person who isn ’ thymine on the policy, it will not be covered. The same is true for any equipment, tool, or personal items belonging to others. Some insurers will offer coverage extensions to protect the place and automobiles of others while they are in the possession of an cover.
Another common position that is not covered by commercial car insurance is an accident that occurs when an employee is using their personal vehicle for business. This international relations and security network ’ metric ton precisely an exclusion because privately owned vehicles are not the duty of commercial car indemnity. As we mentioned above, it is potential to extend commercial car coverage to include this with lease and non-owned car coverage, but that won ’ triiodothyronine be included unless requested by the buyer.
Damages Exceeding Policy Limits
commercial car indemnity policies all have maximum coverage limits, which specify the absolute maximum measure of money that the insurance company will pay out toward claims on the policy. Any damages accrued that exceed the coverage limit will not be covered. One way to add extra coverage beyond the limits of the commercial car indemnity policy is to purchase an surfeit liability ( or umbrella ) policy, which extends coverage of commercial car and other coarse policy policies for businesses.
Business Auto Insurance vs. Personal Auto Insurance
commercial car indemnity works very similarly to personal car insurance with some specific differences that make it more suitable for business purposes. We ’ ve covered most of the details of commercial car indemnity. here ’ s a compendious of how commercial car compares with personal car indemnity policies :
|Commercial Auto Insurance||Personal Auto Insurance|
|Annual Cost per Vehicle||
Commercial Auto Insurance Costs
As with most forms of policy, the cost of commercial car policy is highly pendent on the situation. however, most major indemnity providers offer commercial car policies, and alike ones at that, so the quotes you ’ ll welcome are much similar between providers.
The cost of an policy policy is captured in its monthly premiums. The more coverage, the higher the monthly premiums will be. A basic policy for a passenger vehicle that merely meets the country requirements will be importantly cheaper than, for model, a policy with over $ 1 million in coverage that protects specify structure vehicles like cement mixers.
How Much Does Commercial Auto Insurance Cost?
commercial car insurance quotes tend to be in the rate of $ 800- $ 1,200 per vehicle per class. coverage for eminent risk vehicles, like taxis, and in high risk areas, like New York City, can be vitamin a high as $ 10,000 per vehicle per year. construction contractors can expect to pay anywhere from $ 1,500 to $ 3,000 per year to insure their vehicles because of the risk exposure on most job sites. High-cost construction vehicles that are rented or leased can be significantly more expensive to insure ; it depends on the size, function, and value of the fomite. RELATED
Factors that Affect the Cost of Coverage
The cost of a commercial car policy policy depends on a numeral of factors. Some are out of the buyers manipulate and some can be adjusted to affect the total monetary value of coverage. Below is a compendious of the factors that underwriters use to determine the total cost of a commercial car policy policy :
- Type and value of vehicles – The more valuable a vehicle is, the more expensive it is to insure. Also, vehicles designed to transport people are more expensive to insure. Buses, taxis, and limousines face increased bodily injury liability so businesses must pay higher monthly premiums to insure these types of vehicles.
- Number of vehicles – A greater number of vehicles covered means a higher total cost of coverage. However, if the business is insuring a fleet of vehicles, it will likely receive discounts that bring down the average cost per vehicle.
- Risk profiles of insureds – Underwriters will consider a number of things about each driver who will be listed on the policy. Factors like driving history, age, and gender are used to approximate the risk profile of each driver so the insurer can determine the probability of an incident. The number of drivers won’t normally affect the cost of the policy, but adding drivers could affect the average risk profile of the insured drivers.
- Location and mileage – In very high traffic areas, like New York City, the likelihood of damage to a vehicle is much higher than in rural and suburban areas. Similarly, the more miles driven, the greater the risk of an accident. Anything that adds risk will drive up costs. Additionally, businesses that frequently cross state lines are subject to federal insurance minimums and also face higher risk because of the miles traveled.
- Policy limit and deductible – Businesses who want policy limits above the minimum requirements must pay higher monthly premiums. Commercial auto insurance policies will typically allow limits into the millions of dollars. The deductible on the policy is also a major factor in determining the premiums. High deductibles will lower the premiums, but increase out-of-pocket costs if a covered loss does occur.
Adjusting the coverage included, the limits, and the deductibles can affect the price of the policy. Buyers will need to strike a balance between coverage and price to find the ideal policy for their business vehicles.
Finding Cheap Commercial Auto Insurance
commercial car insurance can actually be fairly cost-efficient if the buyer chooses and plans wisely. There are respective steps that clientele owners can take to make surely that their commercial car indemnity policies are priced fairly. inaugural and first, a clean drive record is the numeral one factor that can bring down the monetary value of the policy. Because the coverage restrict has such a large impact on the policy ’ randomness price, it ’ randomness worth close evaluating the sum of coverage you need. Keeping limits unnecessarily high will add to the monthly premium. We do not recommend lowering coverage limits only for the sake of saving money. however, it is worth taking a close look at the realistic potential costs associated with an incidental and lowering the coverage limit to a desirable charge for the hazard. Increasing the deductible on a commercial car policy policy is another way to keep costs down. Of course, if the deductible is higher, this “ saved money ” comes out of your pocket in the event of a cover loss. That said, if you perceive the risk of accident to be low for your business and employees, high deductibles can be a good option for lowering monthly costs. last, many insurance providers offer discounts to drivers who meet respective criteria.
- Clean driving record discount – Typically, insurers will lower the base cost of the policy for a clean driving record, but they may also offer discounts for hitting certain milestones, like “no accidents for 3 years.”
- Experience discounts – Some insurance providers will offer a discount to experienced commercial drivers. This may include drivers who’ve had their commercial driver’s licenses for a certain amount of time or have had multiple years of driving experience.
- Full payment discount – Often, insurers will give a small discount to policyholders that pay off their annual premium balance at the beginning of the coverage period.
- Bundled policy discount – Many insurance providers incentivize businesses to purchase more of their business insurance policies from them by offering a discount for “bundling” multiple insurance policies. Sometimes these are referred to as multi-line discounts.
- Auto payment discount – Some insurers will offer small discounts for setting up automatic payments each month, ensuring they get paid regularly.
- Safety feature discounts – Many providers like to incentivize their policyholders to drive safely and take various safety precautions. Vehicles with certain safety features may trigger discounts with insurers.
- Professional association discounts – Some insurers will give discounts to policyholders who are a part of various organizations. Some organizations that insurers find favorable and offer discounts for include the Restoration Industry Association (RIA), the Building Trades Association (BTA), the Painting and Decorating Contractors of America (PDCA), and many more. It’s always worth asking the insurance company which organizations they may offer discounts for.
Taking base hit precautions, keeping a safe drive record, and being smart about coverage limits and discounts are the best ways to keep the costs down on a commercial car indemnity policy. Always ask electric potential insurance providers what discounts they offer and how you can lower the cost of the policy. insurance agents can actually be very forthcoming with this information.
Finding The Best Commercial Auto Insurance Company
There are several clientele car insurance policies available through unlike brokers and insurance companies. The insurance company ’ second policy you choose will be what determines the coverage you receive, the measure you pay, and your experience as a customer. Throughout the course of our inquiry, we analyzed respective underwriters. Below, we cover what we believe are the most authoritative things to consider when comparing commercial car insurance companies.
The coverage options that the insurance company offers might be the most important factor to consider when you ’ ra buy commercial car policy for your clientele. Most indemnity companies, though not all, will be capable of providing the general coverage that most people need for the business they conduct. It ’ south authoritative to understand the limits of particular policies, and to find the one that can be dear tailored to your commercial enterprise. respective strategies exist to evaluate the coverage options of a provider without going through the harass of getting a detail quote. first, read over the company ’ randomness commercial car policy information that they provide on their web site. This can take some time, as not all indemnity companies do a big job of explaining their coverage options, particularly when the coverage is slenderly more nuanced, as is the case for commercial car. If a company offers great optional policy extensions or has a very extensive basis policy, they tend to advertise those things on their web site. On the early hand, if they don ’ thyroxine provide much on the topic, it could mean they don ’ t have vitamin a much to offer. Use the data they provide to assess their policy because it ’ s a well indicator of how much they prize customers of their commercial car policies. J.D. Power besides gives some penetration into each insurance company ’ randomness policy put up in their insurance company studies, but the best way to learn about an insurance company ’ s coverage is to call and ask a representative. In talking with a company rep, you not only learn about the policies they offer, but you get a taste of the experience of working with this insurance company. Some indemnity providers automate much of their customer service, which can be frustrating when you are a customer. The best insurers will treat callers with respect and make indisputable to address all of their issues before hanging up the phone.
apart from the ship’s company ’ south ability to offer you coverage suited for your needs, what could be more important than customer gratification ? Customer gratification ratings will illustrate how customers feel about their feel with the versatile insurance companies. At a minimum, your insurance company should offer an easy-to-use web site for managing your policy and submitting claims, equally good as effective customer overhaul representatives for telephone support. The means information gets to you and the direction the company interacts with you throughout the couple of your relationship with them should be a major consideration. There are multiple third-party companies that evaluate insurance company reputations with their customers. The Better Business Bureau and J.D. Power are the most well known and trustworthy sources for this data. We alone reviewed companies that earn strong scores in customer military service from at least one of these organizations—the BBB or J.D. Power. The customer service have defines a policyholder ’ second relationship with the insurance company.
Underwriter Financial Strength
The fiscal intensity of the underwrite ship’s company is a factor that we value when choosing a supplier. It ’ s unmanageable to imagine that your policy supplier could be ineffective to pay the value owed to you in the consequence of a cover loss. however, the fiscal constancy of a party reflects more than just their likely ; it besides illustrates their path record as a caller. many of the companies we discuss below are public companies, whose fiscal information is publicly available for anyone matter to in viewing it. If fiscal persuasiveness of the insurance company is a stick bespeak for you, you can view a company ’ s fiscal documents and determine for yourself how static and trustworthy that company is. fortunately, however, third-party companies review insurance company debts and fiscal details to establish “ fiscal intensity ratings ” and “ constancy outlooks ” for policy companies. There are several fiscal fink agencies that do this. In our analysis, we took into circumstance only the most build and trustworthy fiscal fink agency reports. These fiscal denounce agencies are :
- A.M. Best – Founded in 1899, A.M. Best is a Nationally Recognized Statistical Rating Organization (NRSRO) in the United States. They focus solely on rating companies in the insurance industry.
- Moody’s Investor Service – Moody’s was founded in 1909 and is a bond credit rating business. They are also considered a NRSRO in the United States. Moody’s Investor Service is a branch of the larger Moody’s Corporation.
- Standard & Poor’s – Standard & Poor’s Financial Services LLC (S&P) is a financial services company, and another NRSRO, who provides issuer credit ratings across the financial services industry.
These companies can give some bang-up insight into a company ’ s fiscal express, which saves you from having to do it yourself. Each of the fiscal fink agencies assigns simpleton ratings that provide you with insight into a company ’ s fiscal expectation. All of the companies that we recommend are identical strong according to these major rate agencies.
Pricing & Quotes
price can be unmanageable to evaluate when comparing commercial car indemnity providers. Most of the prison term, insurers won ’ thymine ( or simply can ’ thymine ) provide enough insight into pricing until they get information from you. This means you normally need a quotation mark before you can be certain of what you ’ ll need to pay for the coverage you seek from a detail supplier. In many cases, getting a quote can be a time-consuming procedure that requires a big manage of information and documentation. One of the few insights into pricing you can find without acquiring and comparing quotes is the data that J.D. Power provides in their insurance industry studies. One of the metrics that they sketch policy customers on is their atonement with the price of their policies. We use this information to assess pricing for the companies we recommend. however, not all companies we recommend are on the favorable end of this spectrum, because sometimes higher choice policies are more expensive. additionally, these ratings frequently encompass a wide compass of policies and are not necessarily congressman of specific types of coverage, such as commercial car policy. distillery, the information that is provided can be a utilitarian originate compass point if price is a primary concern.
The Best Commercial Auto Insurance for Small Businesses
little businesses who use vehicles to conduct their operations must, of course, purchase commercial car coverage for the car they use. however, when comparing insurers, modest businesses might prioritize different factors about the coverage and the company who offers it. Saving money is frequently a key consideration for little companies because of cash run constraints. so, finding a commercial car insurance company with low premiums is a must. Luckily, many commercial car insurance companies besides provide tractability with see to pricing. little businesses who want a lower monthly premium from any insurance company can achieve this by requesting a policy with a higher deductible and lower coverage limits. By decreasing the sum coverage and increasing the come the business is creditworthy for before indemnity kicks in, businesses can reduce their monthly premiums significantly. Of course, lowering the premiums by reducing coverage and increasing the deductibles means the occupation assumes more province when accidents or cover incidents do happen. This scheme to reduce costs should be accompanied by improving safety and security best practices within the organization to reduce the likelihood of incidents. small businesses besides need to consider whether any of their employee ’ s personal vehicles should be considered for coverage. New small businesses may not have their own fleet of vehicles, and trust on employees to provide their own department of transportation. If employees of a belittled business are using their personal vehicles for occupation operations, the occupation must buy hired and non-owned car coverage, which protects the business from damages to vehicles that it does not own. furthermore, modest businesses may benefit from purchasing all ( or most ) of their commercial enterprise indemnity coverage through a single insurance company. This can simplify charge and frequently leads to discounts from bundling commercial car with early insurance policies, like workers compensation and general liability. Considering the costs and coverage that belittled businesses need, some commercial car policy companies are a better fit than others. With these factors in mind, along with the discounts available for little businesses, Construction Coverage ranks these providers the Best Commercial Auto Insurance Companies for Small Businesses :
Best Commercial Auto Insurance Companies
In order to determine the best commercial car policy companies, we researched all of the exceed commercial car policy providers. once our research was complete, we rated each company on the play along factors : ( 1 ) coverage options ; ( 2 ) fiscal lastingness of the cover company ; ( 3 ) company reputation, customer overhaul, and claims defend ; and last, ( 4 ) pricing.
Progressive Commercial Auto (Best Overall)
progressive # 1 in commercial Auto Insurance Best overall liberal is our acme recommendation for commercial car policy overall and besides one of our top-rated commercial truck indemnity companies. Founded in 1937, Progressive has ascended to a commanding position as the largest commercial car insurance company by premiums written. They assist with claims by completing separate of the work for their customers, offer a number of unique customer service options, and have several discounts available across many of their policy options.
- Progressive’s usage-based insurance program can reduce cost and improve safety
- Offers one of the most extensive set of coverage options of any insurer on the market
- Scored slightly worse than competing insurers in a recent customer satisfaction survey conducted during COVID
progressive ’ mho commercial car policy options include standard coverages for indebtedness, forcible fomite wrong, personal injury, checkup payments, and uninsured or underinsured motorists for a wide variety of business autos. But befitting its place as grocery store drawing card, Progressive besides offers more specialize coverages including hired and non-owned car and rental reimbursements, along with a solid solicitation of coverages more specific to trucks. In terms of cost, Progressive is most noteworthy for its voluntary pay-as-you-drive insurance course of study Snapshot ProView, its usage-based policy broadcast that offers discounts for safe driving behavior along with tools for evanesce management. Progressive besides offers several rebate opportunities, including savings for businesses that have been in operation for at least three years, pay their premiums in full rather than monthly, or package car coverage with other commercial policies from Progressive. To get a common sense of precisely how much you might pay, Progressive makes it easy to start a quotation on-line. Progressive was recently tagged with an A+ fiscal intensity evaluation by A.M. Best. Moodys and S & P rated them at Aa and AA respectively, all indicating Progressive is financially firm. The Better Business Bureau gives Progressive an A+, but one downside of Progressive is that by early measures of customer satisfaction, they lag slenderly behind their competitors. In J.D. Power ’ south 2021 Insurance Shopping Study, Progressive scored an 856 out of 1,000, coming in below the segment modal of 871 and trailing several other competitors among large insurers. not alone is Progressive a big indemnity supplier with an abundance of coverage options and alone benefits, it is well equipped to fulfill about any policy needs. Because of Progressive ’ s extensive coverage options, quality discount opportunities, and superb fiscal strength, Progressive should be a top choice for anyone in the market for commercial vehicle indemnity.
Nationwide Commercial Auto (Runner-Up)
nationally # 2 in commercial Auto Insurance runner-up Nationwide is our runner-up recommendation for commercial vehicle insurance. Founded in 1926, Nationwide is now one of the largest insurers in the market and is a particular drawing card in the class of commercial car. nationally scores very well in all of our categories, and there ’ s little they can ’ metric ton suffice.
- Excellent reputation and financial strength
- Nationwide stands out for its Vantage 360 program, which allows businesses to monitor its drivers’ activity in real-time
- Vantage 360 is not yet available in all states
Nationwide ’ s commercial car policy covers all the bases. It includes coverage for physical damage, indebtedness, medical payments, collision and comprehensive examination indemnity, and uninsured motorist indemnity. They offer a diverseness of accessory options as well, including wayside aid, coverage for rental reimbursement, forcible damage on hired car, and many others. Nationwide ’ randomness evaluation in J.D. Power ’ second 2021 U.S. Insurance Shopping Study lags behind early large insurers, with an overall customer satisfaction grudge of 846 out of 1,000, but by other measures, Nationwide is a dependable and trustworthy provider. The Better Business Bureau awards Nationwide an A+ rate, and further, Nationwide has been accredited with the BBB since 1955—meaning that they meet the BBB ’ s highest standards for clean, diaphanous, and ethical business. In terms of fiscal forte, Nationwide has excellent ratings from the major recognition agencies : an A+ rate from A.M. Best, an A1 from Moody ’ mho, and an A+ from Standard & Poor ’ sulfur. To obtain a quotation from Nationwide for commercial car coverage, potential customers can initiate a quote on-line or by calling. One of Nationwide ’ s most significant discounts comes from its Vantage 360 Fleet program, a voluntary program that uses real-time data from your vehicles to monitor drivers ’ natural process. If you enroll in Vantage 360 Fleet, you can receive a 10 % discount on your business car policy. note that Vantage 360 Fleet is not offered in every state, so you should check to see whether your commercial enterprise is eligible to enroll. Nationwide ’ s commercial vehicle policy policies offer quality coverage, strong fiscal ratings, and the electric potential for significant discounts, all of which make it easily for us to recommend Nationwide ’ s commercial vehicle insurance policies.
Farmers Commercial Auto (Best for Contractors)
Farmers # 3 in commercial Auto Insurance Best for Contractors Farmers Insurance Group was founded in business district Los Angeles in 1928 and is presently the seventh largest policy caller in the United States. initially providing coverage to rural farmers in California, it has grown and developed to serve as one of the most divers and accommodating indemnity companies in the state.
- Offers a broader range of coverage options specifically tailored to contractors, like tools and equipment coverage
- Slightly lower financial strength ratings than some other large insurers
Farmers provides several flexible commercial car indemnity policies that can be adjusted based on your business ’ randomness needs while covering common components like indebtedness, personal injury, non-owned car, uninsured and underinsured motorist, and more. Farmers is besides dedicated to helping you identify other forms of coverage that your commercial enterprise might need and developing a comprehensive package of commercial insurance coverage to protect you from a variety show of risks. In addition to providing many of the typical coverages for commercial car, Farmers excels in specialized coverages specific to contractors. For example, Farmers offers coverage not alone for contractors ’ vehicles but besides for the expensive tools that they transport with them. Another example is coverage for subcontractors when an indemnity agreement includes requirements for primary and noncontributory coverage. Farmers ’ ability to address these situations with custom policy options illustrates the extent of expertness they have in the area of commercial car indemnity for contractors. In addition to being large, well-established, and divers, Farmers has effective to excellent fiscal lastingness ratings. The company was recently issued A, A2, and A+ fiscal potency ratings by A.M. Best, Moody ’ second, and S & P, respectively. In J.D. Power ’ mho 2021 U.S. Insurance Shopping Study, Farmers scored an 868 out of 1,000, fair below the segment average of 871. This fink makes Farmers competitive with many of the other leading big companies in the commercial car policy market when it comes to customer gratification. additionally, Farmers has been accredited with the Better Business Bureau for 70 years and presently holds an A- fink with the BBB. To find out how much a Farmers commercial car policy will cost, you can call or start a quote on-line. You will be connected with a local anesthetic farmers agent who can tell you more about your policy options and potential discounts. In drumhead, Farmers rates well with us and is our foot for the Best Commercial Auto Insurance for Contractors.
Geico Commercial Auto (Best for Rideshare)
Geico # 4 in commercial Auto Insurance Best for Rideshare Geico is our clear recommendation for livery insurance. Livery insurance—insurance for vehicles used by businesses that generate gross by transporting people—is a subset of commercial car insurance that functions a little differently depending on who provides the coverage. It is all-important to have for those who plan to transport people for hire. After our research, we feel that Geico is the best choice for bilious indemnity based on our criteria.
- Geico’s commercial auto policy for rideshare drivers is among the best in the industry
- Geico received the best financial strength and customer satisfaction ratings of any company in this guide
- Geico covers a more limited set of vehicle types than other insurers, which could be an issue depending on your needs
Rideshare drivers for companies like Uber or Lyft may have coverage gaps if they barely carry distinctive car insurance. Rideshare companies offer only some indebtedness coverage for their drivers and don ’ metric ton cover the driver ’ south vehicle damage. Most personal car policies may not cover wrong or injuries that occur while driving for fares either. In fact, your personal car policy carrier may cancel your policy due to your ridesharing activities. Livery besides encompasses cab and limousines. Geico is one of the peak providers for rideshare indemnity. They nowadays offer a hybrid rideshare policy for people who plan to transport people for hire. The policy replaces your personal car insurance coverage and covers you whether you ’ re on the clock or not. It covers you ( the driver ), passengers, and property damage to your vehicle ( if you have collision and comprehensive indemnity ). It is limited to the vehicle you drive for ridesharing purposes alone, and per common, the price is determined on a individual basis. The biggest benefit is that Geico ’ s policy covers you during every phase of a rideshare, whether you ’ rhenium waiting on a passenger, driving to pick them up, or driving them to their finish. In accession to its specialized coverage with rideshares, Geico offers many early benefits as a commercial car policy provider. Its early commercial car policies cover indebtedness, driver wound, injury to others, place damage, and other key coverages for commercial vehicles. Geico makes it easy to start a quotation mark on-line, and they offer excellent discounts for new customers and customers who bundle different policies.
Geico started out providing car policy to government employees in 1936. It is now the second largest car insurance company in the United States. Their fiscal lastingness ratings are excellent as well, with some of the highest ratings in the diligence : A.M. Best rates them at an A++ floor, their highest possible score, along with an Aa1 from Moody ’ s and an AA+ from Standard & Poor ’ south, which are each the second-highest rate on those respective scales. In terms of customer satisfaction and company reputation, they presently carry an A+ rate from the BBB, and the J.D. Power 2021 U.S. Insurance Shopping Study gave Geico an 869 out of 1,000—the highest of all the insurers highlighted in this lead. Geico is a solid choice for commercial car policy coverage, rat well in our analysis across all key factors. But one of Geico ’ s unique benefits is in its loanblend coverage for rideshare and livery drivers, and for that rationality, we rate Geico as the Best Commercial Auto Insurance for Rideshare & Livery Service.
Each ship’s company featured in our guides has been independently selected and reviewed by our research team. If you select one of these companies and snap on a radio link, we may earn a commission.