Important Factors for Commercial Car Insurance

Commercial car insurance is designed for businesses, whether they may be a single person pizza delivery service or a huge construction corporation. As you can expect, commercial insurance provides special coverage for both the drivers and the vehicles plus the shipped cargo. There is no substitute for this policy.  If you want to know what influences the rates for this coverage, check the following factors. Also, for free car insurance quotes, check our website.

  1. Vehicle types and purpose. The cost for a van will be totally different than the one for a large transport cargo truck. Commercial auto insurance policies vary greatly depending on the number and type of vehicles that are covered. Insurance companies use different classifications and statistics in order to determine rates. Trucks, tractors, and trailers that weigh more have more potential to do serious damage in an accident, and may have a harder time navigating city streets. The purpose of the vehicle will also influence the costs. The vehicle can be used for service use (transporting people and materials to worksites), residential use (delivering goods to residences) or commercial use.
  2. Assigned drivers. The driving history of your employees and associates will have a big impact on auto insurance rates. You must gather the driver’s license numbers of every person who will be covered under your policy. Then carriers will check driving and claim history to assess the insurability risk (the risk a person has to make a claim).Working with low-risk drivers will help you get better rates.
  3. The road infrastructure will also influence the insurance costs. Whether you spend more time driving on rural roads, metropolitan streets or highways will determine how much you will have to pay. Also, traffic conditions and accident statistics will determine the rates.

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