What’s The Cost of Commercial Auto Insurance?

commercial auto insurance MA

If you own a small business, you may need to get a commercial auto insurance policy. Anyone who has a vehicle for business purposes should have a commercial auto insurance policy. This coverage can help protect you, your employees, and others on the road. Accidents can happen without warning. Even the safest drive may find themselves in a collision. If, or when, that happens, having an appropriate auto insurance policy in place can make a tremendous difference.


A commercial auto insurance policy often covers the following things:

  • Liability—this helps to cover costs associated with injuries to others and property damage that your vehicle caused.
  • Medical—With auto insurance, costs of medical treatments may be covered
  • Collision— This is coverage for your vehicle as a result of the collision with another car/object.
  • Comprehensive—this help to protect you and your vehicle from damage caused by things other than a collision. This could be a fire, vandalism, theft, or animal hitting your windshield.


Depending on what type of vehicle your company has, there could be varying amount of coverage. For example, your small business may have a single car, or you may have a fleet of trucks. Talking to your commercial insurance agent can help you determine the right coverage for your company. These are some other factors that can affect your commercial auto insurance:

  • The Type of Insurance – the type of insurance you need for your company vehicles can differ vastly. For those who own their company vehicle, then a commercial auto insurance policy is typically a good option. But for those who rent or lease, you may want to ask about Hired & Non-Owned Auto Insurance (HNOA)
  • Where you plan on driving – What neighborhoods or areas will you vehicle operate and what time of day you are using your car?
  • How much you drive – The amount you plan on driving can play a role in the cost. Driving long distances everyday versus driving locally can make a difference.
  • Driver demographics – This is the drivers, age, sex, marital status, etc.
  • Driving Record – This helps determine the amount of risk you have as a driver.
  • Claims history – Having few or no claims against you will inform the insurance company that you are a lower risk driver.
  • The Type of Driving you plan to do – what will you be transporting? How do you plan on using the vehicle. The use of the company vehicle can affect the cost.
  • Safety Devices of the vehicle – Things such as anti-lock brakes, side airbags, alarms and GPS can affect your insurance rates.
  • Coverage Limits – The amount that your insurance will help cover in damage.
  • Deductible Amount – This is the amount that you are required to pay before your commercial auto insurance coverage kicks in.


With all these factors in mind, it can be difficult to figure out the coverage you need. That’s why it’s important to call your commercial insurance agent. They understand what your business needs to thrive. Don’t let an auto insurance policy obstruct your company from excelling. One accident could cost your thousands and thousands of dollars without insurance. It could be potentially devastating for a small company. Getting insurance is another safety net for your small business.


If you have any questions, concerns, or inquiries, call Encharter at 888.754.8299! An agent can help you out!


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