Commercial auto insurance is an essential coverage for business owners. Whether you own a trucking company or a lawn care service, there are risks that are unavoidable when you drive to different job sites. These policies apply to autos owned or used in your business and will protect your business against liability damages, collision or comprehensive physical damage loss to your autos, and medical expenses for injuries to occupants of your business autos. You might be curious about the difference between a commercial auto policy and a personal policy. The main difference is how and when you are using your vehicle. If you are using your auto for any type of business purposes, it’s time to talk to an insurance professional about a commercial auto policy.
How are the premiums for the commercial auto policy calculated?
The cost of your commercial auto policy is based on many variables. That is why the application process will include several specific questions about your business and insurance needs. Here are some factors that will affect your premiums:

Type of insurance – Do you own, lease, or rent vehicles for your business? If only owned autos are used, then a standard commercial auto policy is typically a good option. But if you lease or rent autos you need to add hired and non-owned coverage, which could increase your premiums.
Where and how much you drive – Are your company vehicles parked in a high crime area? Does your business operate in an area with extreme weather conditions or heavy traffic? How many miles do you typically commute each day? Each of these factors will influence your premiums.
Driving records and claims history – Your employees and anyone driving on behalf of your business should have a clean driving record. Someone listed on your policy with moving violations or accidents can mean paying higher rates.
Type of driving – How are the vehicles used? Do you transport people or supplies, make any deliveries, or carry any hazardous materials? All of these are more elements in calculating the cost of your policy.
Type of vehicles – Of course the kind of vehicle that is used in your operations and covered on the policy will have influence on your premiums. A semi-truck versus a typical private passenger vehicle not only have different values but also have different insurance rates.
Safety devices – Some features such as anti-lock brakes or GPS devices can help lower your costs if your vehicles are equipped with these or other safety features.
Coverage limits & deductibles – Just like with your personal auto insurance, the higher the limits the higher the rates. With deductibles, the lower the deductible the higher the rate. But before you consider lower coverages, make sure to assess the risk of leaving your business unprotected with inadequate coverage.
Where can you purchase commercial auto insurance?
The best place to start is by asking your current personal insurance agent if they offer commercial insurance options, too. They will be able to let you know what carriers they can offer you or be able to point you in another direction if needed. If you are in the Denton County areas, such as Sanger, Krum, Aubrey, or anywhere in Texas, give us a call at Sanger Insurance. We would be happy to assist you in finding the best coverage at the right rate for you and your business.