Commercial auto insurance is usually more expensive than a personal auto insurance policy due to the risks, the size of a business and the number of insured vehicles. If you have more people sharing a vehicle, you will likely pay more due to the increased risk. These prices also depend heavily on your location, driving record of all drivers, claims history and more.
There are also often higher limits of liability on commercial vehicles that will drive your price up.
Be careful when choosing between a personal auto insurance policy and a commercial auto insurance policy. Choosing the wrong one can leave you without coverage when you need it most. If you insure your vehicle with the wrong policy, such as insuring a personal vehicle with commercial auto insurance, you could even be dropped by your insurer.
Average Cost of Personal and Commercial Auto Insurance
For a full coverage commercial auto insurance policy, business owners may pay between $750 and $1,200 each year per vehicle. The average cost of a personal auto insurance policy is closer to $1,555 per year. This comparison can be misleading, however.
Ask your employer if you will be required to drive vehicles (even your own) for work and what is covered by their commercial auto insurance policy. If you’re unsure about how to insure your vehicle, ask an insurance agent for help.
Who Carries Commercial Auto Insurance?
Say you drive a company car provided to you by your employer. Will you be required to carry commercial auto insurance for this vehicle since you use it for work?
In short, no. Your employer should have a commercial auto insurance policy to cover commercial and company vehicles. However, you should still have an auto insurance policy in place in case you drive another vehicle or need additional coverage. A personal auto insurance policy may still help fill in the gaps left by your employer’s commercial auto insurance policy.
If you are not sure about which type of policy you need, consider your risks and speak with an insurance agent. An agent can help you navigate the differences between these two policies and guide you to the right coverage for your lifestyle and your vehicle. Also be sure to shop around, compare quotes and ask about discounts to save money on commercial auto or personal auto insurance coverage.