How Much More Expensive Is Commercial Auto Insurance?

Commercial auto insurance is necessary for many businesses. If you use a vehicle or a fleet of vehicles for business purposes, then commercial auto insurance is important. However, some people have the perception that commercial auto insurance is expensive and therefore never consider it and are putting themselves and their business at extreme risk as personal insurance companies will decline claims if they discover undisclosed business usage. Luckily, ALIGNED is here to help you understand how commercial auto insurance rates are calculated and let you in on some of the industry’s top secrets for saving money on commercial auto coverage. 

Commercial Auto Insurance
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The cost of commercial auto insurance 

The cost of commercial auto insurance varies considerably. This is because insurance companies consider a wide range of factors when calculating commercial auto insurance premiums. Below is a list of factors that will likely be used to determine your commercial auto insurance rate:

  • The make, model, and year of the commercial vehicle(s) your business uses
  • The number of vehicles your business uses
  • How often and for what purposes your business vehicles are used
  • The driving records and years of driving experience of you and your employees
  • The coverages, limits, and deductibles you choose for your policy
  • The unique risks that your industry faces
  • The age and genders of you and any employees who drive your business vehicle(s)
  • The location of your vehicles when parked
  • The number of kilometres your business vehicle(s) are driven annually 

Is commercial auto insurance more expensive than personal car insurance?

In some cases commercial auto insurance is only slightly more expensive than personal car insurance and is definitely worth it if you are in fact using a personally insured vehicle for business purposes as insurance companies can and will decline claims if the vehicle usage isn’t fully disclosed and approved.  However, because liability and property damage claims may be higher when transporting people or products for compensation some commercial auto insurance products are materially more expensive, but justifiably so given the increased risk/exposure.

Mandatory commercial auto insurance coverage

If your business needs commercial auto insurance, some coverages might be mandatory depending on where you live in Canada. For example, all standard car insurance policies in Ontario must include the following: 

  • Third-party liability coverage
  • Direct compensation – property damage coverage
  • Uninsured automobile coverage
  • Accident benefits coverage 

Optional commercial auto insurance coverage

Meanwhile, businesses will also have the option of adding additional coverages to their commercial auto insurance policies. Such coverages may include:

  • Collision coverage
  • Comprehensive coverage
  • All perils coverage
  • Specified perils coverage

How to save money on commercial auto insurance

The best way to save money on commercial auto insurance is by having ALIGNED Insurance do the shopping around for you. We will contact some of the 70+ top insurance providers to obtain and compare quotes on your behalf, all in an effort to find you the best coverage at the lowest rate.  

Contact ALIGNED to learn more about the cost of commercial auto insurance.  

Want to find out how much commercial auto insurance costs? Contact ALIGNED to learn more about how insurance companies calculate premiums. One of our commercial insurance experts can even provide you with a free quote to give you an idea of how much your commercial auto insurance policy will cost. Click Here To Get A Quote or contact one of our business insurance experts for information or with any questions you may have.

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