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Return To: Commercial Auto Insurance – The Ultimate Guide

One mistake that small business owners often make is to assume that their personal auto insurance provides coverage for the vehicles they use for their business. Many aren’t aware that once a vehicle has been registered for business use, most personal auto insurance policies won’t cover for the liabilities of a business vehicle, exposing the vehicle owners and their employees to significant risks.

Keep yourself from falling into the same trap by getting commercial auto insurance on top of your personal auto insurance policy. While this may sound like an additional expense, it’s always better to be safe than sorry. 

If you’re interested in getting it, continue reading below to know how much commercial auto insurance costs. 

What Does Business Auto Insurance Cover?

Before delving into the costs of business auto insurance (also known as commercial auto insurance), you must first be aware of what this type of insurance actually covers. Similar to a personal auto insurance policy, business auto insurance covers physical damages and liability in one specialized package that can be applied on a first-party and third-party basis. Aside from covering vehicles owned by your business, commercial auto insurance also covers rented or borrowed vehicles as well as employees who use their cars for the business. 

Covered in business auto insurance are the following:

Average Cost for Commercial Auto Insurance

In the state of North Carolina, all registered businesses are required by law to provide drivers of business vehicles with continuous liability insurance. This protects you and your employees from damage and injuries that have occurred during work hours.

As a minimum liability limit, North Carolina requires vehicle owners to get the 30/60/25 minimum. Also called the split limit, this policy separates or splits the dollar amounts payable by your insurer into three groups:

For small businesses, the monthly average cost of commercial auto insurance can range from $50 to $200 for each commercial vehicle that’s insured. Recommended median liability limits can also run between $500,000 to $1 million.

Getting a business auto insurance quote from a reliable insurer can give you an idea of how much you need to pay for the coverage you want. 

Average Commercial Auto Insurance Cost Based on Vehicle Type

Businesses are varied and use different vehicles for different purposes, so the costs can be significantly affected by the type of commercial vehicle you want to insure. Here’s a quick rundown of estimated average costs based on vehicle type:

Commercial Vehicle TypeAverage Cost
Bus $3,500
Cargo or Delivery Van$3,300–$6,200
Semi Truck$8,000–$12,500
Tractor Trailer$2,500+
Average Cost Of Commercial Auto Insurance

Factors That Affect the Cost of Commercial Auto Insurance

Aside from the type of coverage you need, other factors can affect how much you have to pay for your commercial auto insurance. These can include the following:

Cutting Down on Commercial Auto Insurance Premiums

Even though commercial auto insurance is a necessary expense to keep your business covered, there are several ways you can cut down on the payments for premiums. Armed with the right knowledge, you can make the most of your coverage while staying within your budget. 

Here are some options you can consider:

Stay Safe—Get Covered

Every year, more than 38,000 people die from crashes on US roadways. An additional 4.4 million suffer from serious injuries as a result of road crashes. These figures are more than enough reason to get commercial auto insurance since you can never be too careful on the road. This way, you can be sure that you and your employees are protected when you get involved in a vehicular accident.

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