Commercial Vehicle Insurance Cost
How Much Does Commercial Vehicle Insurance Cost?
When owning and driving vehicles is central to your business, commercial vehicle insurance rates are a major consideration. Finding average commercial vehicle insurance rates is not an easy task because there are so many variables affecting the cost of coverage. While you may find online insurance websites that provide quotes for your commercial car, bus, taxi or truck, the details of the coverage are often hidden from view.
Your premium costs are affected by many factors, including the type of vehicle your company owns and the risks involved. Low priced online quotes may not accurately reflect the coverage you need for the potentially large liability involved in commercial incidents. Find an agent in the Trusted Choice® network today to get commercial insurance quotes that are relevant to your business at a rate you can afford. These agents can shop for the best rates, find discounts, and combine multiple business policies in order to simplify your life and save you money.
Average Commercial Vehicle Insurance Rates
- Commercial car insurance cost: $1,200 to $2,400
- Commercial truck insurance cost: $800 to $2,000
- Commercial taxi insurance cost: $5,000 to $10,000
- Commercial bus insurance cost: $35,000
- Commercial tractor trailer insurance cost: $2,500+
What Determines Your Commercial Vehicle Insurance Rates?
Your commercial vehicle insurance rates will be affected by a number of factors, including the following:
- The driving records of all drivers: Insurance companies often have specific underwriting requirements, particularly for those who will be driving heavy duty trucks such as tractor trailers. Drivers with several driving violations may cost your company much higher premiums, or may prevent you from getting the insurance you need. Hire qualified, skilled, claims-free drivers to both lower your rates and reduce your risks.
- The value of your car, truck, van, taxi or limo: Many business owners consider premium rates when choosing vehicles to add to their fleet. You can research average rates by contacting a local member agent in the Trusted Choice network. Assessing the commercial auto insurance costs for a particular vehicle prior to buying can make a big difference in your annual insurance costs. Your premiums will also be affected if your truck has more features.
- The structure of your policy: If you buy each of your commercial policies separately, you will typically pay more than if you insure your commercial vehicles together under one insurance company. You can typically reduce the cost of your premiums by bundling them together for a multi-policy discount. Insurance companies also often provide bulk discounts depending on the size of your fleet.
- Driving location and distance. How far you and your employees drive impacts your commercial auto or commercial truck insurance costs. The more miles that your fleet travels, the higher your risk of being involved in an accident. Insurance companies take this into account when they calculate commercial insurance rates.
Manage Your Commercial Auto Insurance Costs
Businesses use vehicles for many different purposes. For instance, a construction company may have a company car that travels from one job site to another, as well as several commercial trucks to haul lumber and building supplies. Your commercial vehicle costs will be affected by your liabilities with regard to each of these vehicles, the potential loss in the event of an accident and other factors.
It is a good idea to do an annual review of your insurance portfolio, commercial vehicle inventory, drivers and commercial vehicle insurance rates as many things can change. You may qualify for additional discounts, for example, if your company remains claim-free. If your use of your cars, trucks or other vehicles has changed, you want to make sure you are not paying too much for coverage; by the same token, you’ll want to make sure your coverage is fully updated to match your needs and there are no coverage gaps.
One of the most important coverage types to assess on a regular basis is your company liability. Because lawsuits involving commercial vehicle accidents can result in very large judgments, making sure your commercial vehicle liability is adequate is essential. Many business owners who have one or more commercial vehicles consider purchasing a commercial umbrella policy to cover excess liability costs above what is built into a standard policy. An umbrella liability policy will increase your commercial insurance costs, but it can be a surprisingly affordable policy for the amount of protection it provides.
Find Commercial Vehicle Insurance Rates to Match Your Budget
A local independent agent in the Trusted Choice network who specializes in business insurance can help you find a commercial auto insurance policy at a cost that matches your budget. Member agents in this network partner with several different insurance companies, and can help you to compare options and prices and make an informed choice.
Your commercial insurance agent can answer any of your questions and work with you to protect your property and your employees. Contact a Trusted Choice member agent now, and get the support you need to find the right commercial vehicle insurance rates for your business.
How much does UK car insurance cost?
The average car insurance premium in the UK for comprehensive cover costs £485 a year, according to Association of British Insurers (ABI) data for the third quarter of 2017. That is the equivalent of £40.41 a month.
Get car insurance quotes from the 10 best car insurance companies in the UK. Some of them, like Aviva, offer discounts if you buy online. Aviva offers up to 20% online discount.
ABI says that in the third quarter of 2017, the average price of comprehensive motor insurance rose by 10% on the third quarter of 2016. That’s an increase four times the rate of inflation, or a total average increase of £45.
ABI says that the average premium is the highest it has ever been since it started tracking motor insurance prices in 2012.
The ABI uses data from a number of insurers but other organisations give different answers.
According to Consumer Intelligence car insurance premiums have gone down by 5.5% over the last 12 months to an average of £712 per year.
Car insurance premiums for under 25s have gone down by 11.9% due to a growing number of insurers offering telematics. However younger drivers still pay a lot more compared to people in their 50s – according to CI’s data, drivers under 25 often pay an average of £1,635 a year compared to an average £413 for over 50s.
MoneySuperMarket says the average cost of annual car insurance from March – May 2016 was £470 and Confused.com says it was £827 in the last quarter of 2017.
However, they all agree that costs have risen in the past few years. This is due to a number of factors, but includes the increase in insurance premium tax from 10% to 12%. This happened on 1 June.
MoneySuperMarket says prices soared 22.6% in the past two years and the ABI calculates today’s prices are the highest ever. Previously, the highest average was in the second quarter of 2017, when the average price stood at £479. Confused.com says that prices have increased by 8% in a year on average, equivalent to £60.
Recent research from Comparethemarket.com suggests that the average policy in the third quarter of 2017 was £740. That’s £42 more than the average at the same time in 2016, which was £698, according to comparethemarket.com.
Each company works out its average premium in a different way. This accounts for the discrepancy in figures.
It is possible to pay less than the average premium. Car insurance costs are calculated using three core factors: the car you drive, your driving experience and age, and your claims history.
We’ll look at each of these below.
Factors that affect car insurance premiums
The car you drive
Insurers set a premium based on a driver’s ‘risk’. This is the probability they will need to make a claim.
Insurance firms work out your risk using the information you give them when you get a quote. There are many factors involved in this calculation but a key one is the kind of car you drive.
The make, model, age, security, value and size of your car all affect the price of your insurance.
Some of the factors influence the chance of a claim and others the cost of a claim.
For example, sports cars are more likely to be involved in accidents so they are seen as a higher risk. And repairing a powerful car is likely to be a long and expensive process, which also adds to the cost of a premium.
Brand new cars may be mass produced and have top-of-the-range safety and security features but they have a high value when they’ve just left the dealership and will cost a lot to replace.
The cheapest cars to insure are ‘group 1’ cars. The insurance industry uses 50 groups to set pricing levels.
You can see a list of group 1 cars here. It is made up of smaller vehicles such as the Vauxhall Corsa and Seat Mii.
Group 2 cars are the second cheapest, so if you want to keep insurance costs down it’s worth checking out the models on the group 1 and 2 lists.
Cars with particularly powerful engine sizes, old or rare cars are likely to have higher insurance premiums and you may even need to buy specialist cover.
At present, there aren’t many stats available for the average cost of insurance for Tesla electric cars in the UK. However, anecdotal quotes on a Tesla forum range from £250 to £1,200 for a Tesla Model S.
Tesla owners on the forum say Admiral, LV=, NFU Mutual and Home & Legacy all cover Tesla cars and can offer rates comparable to petrol or diesel vehicles.
Your driving experience and age
Most young drivers have experienced the pain of trying to get a reasonable insurance quote. Data does show that young drivers are more likely to be involved in accidents; unfortunately, that means insurers tar all young people with the same brush.
Premiums are usually high for people around 17 and 18 years old because they haven’t had the same time as older drivers to prove they are safe behind the wheel.
The more experience you have, the cheaper your car insurance premium. That is why people aged between 40 and 70 with no claims are likely to be able to get the cheapest quotes. After 70 prices tend to rise because people’s reaction times slow with age.
Young drivers do have options to lower their premiums. Insurers will take into account advanced driving courses when calculating a quote and black box policies can bring down premiums even more.
Black box insurance involves fitting a small device to the car that tracks the owner’s driving, giving them a rating based on things like how well they brake, accelerate and corner. The driving score can then be used calculate a lower premium or reward customers with discounts.
Young people can also be listed as a named driver on a more experienced person’s car. This is what learner drivers have to do, although there are separate policies created for them by companies like Marmalade. It will cost a little to add a driver to a policy but not as much as getting them a separate policy.
Insurance costs should noticeably drop when a driver reaches around 21 years old, as long as they haven’t been involved in an accident.
History of claims
Insurers use data on previous claims to calculate your premium.
Customers can also build up a no claims bonus (NCB), which is based on the accumulative years they have not made a claim. Insurers offer discounts relating to a customer’s NCB, which vary from company to company.
The Co-op offers a 70% discount for five years or more without claims.
Unsurprisingly, if a driver makes a claim their insurer is likely to increase their premium because they believe there is a greater chance of them make subsequent claims.
However, it’s difficult to say how much car insurance goes up after a claim. If a driver is not at fault their no claims bonus may be protected.
It’s also possible to buy NCB protection as an add-on to car insurance. NCB protection allows a certain number of ‘at fault’ accidents without affecting your bonus. It doesn’t make you immune to price hikes after a claim because insurers use previous claims to calculate your premium before discounting your bonus.
Price increases after a claim can be small but will depend on a number of factors such as who was at fault and the amount of damage caused.
If you claimed more than 5 years ago you may not be required to disclose it to an insurer.
How much does it cost to add business use to car insurance?
Adding business use to your car insurance can cost as little as £20 to £50. However, this will vary depending on some of the factors discussed above such as your age; how you use your car in relation to your business; and whether you require a full policy or an add-on to your regular insurance.
More Than says its company car insurance starts at £545 per year. It offers comprehensive and third party, fire and theft cover. This is a full insurance policy, rather than an add-on. This figure is based on 10% of new quotes between September 2016 and March 2017.
To add business use to your car, you’ll need to ring your insurer to ask them about it.
Get a quote with More Than for business car insurance.
You may be able to get reimbursed by your employer if you’re using your own vehicle for commercial use.
You’ll need to insure your car for business use if you use your car as part of your job, whether that be travelling to different offices or visiting clients. This is different from company car insurance. Insurance for company cars is often covered by the company that owns the car.
It’s important not to get caught out with normal car insurance. A regular policy will generally only cover you for commuting to a single place of work. This means other things, like travelling to a training course, going to the bank for your company or attending company away days, may not be covered under a regular, private car insurance policy.
There are a couple different options when it comes to business use. Normal business use includes driving to different sites or offices and going to meetings away from your normal work destination.
Commercial travelling cover will insure you for things like delivering goods or doing door-to-door sales.
Insurance companies may offer different levels of cover, so make sure you check you’re not buying too little or too much cover for your needs.
Other car insurance costs
There are other car insurance costs that can crop up, such as charges to cancel a policy. How much it costs to cancel car insurance will depend on when you cancel and the terms and conditions of your policy.
If you change your mind within the first 14 days of your policy you’re protected under the UK’s cooling off period, although you may still have to pay for the days of cover you received and an admin fee.
After the first two weeks the cancellation fee may be higher and you might not get a full refund.
Breakdown cover is a separate policy to car insurance but many insurance providers offer it for an additional cost. It’s worth shopping around because the breakdown cover insurers offer is often provided by separate companies who may be cheaper.
Rental cars usually include car insurance in the hire costs.
Caravans may need separate insurance policies. We’ve written a guide to touring and static caravan cover here.
It is possible that the Brexit vote for the UK to leave the European Union could impact insurance costs. EU rules put a stop to gender being used to calculate insurance quotes. However, women are statistically safer drivers than men so when we leave the EU it could mean that insurers will be allowed to offer women cheaper premiums. Watch this space.
How the average costs of car insurance are calculated
ABI – Average: £485 a year – The first answer we give is from the Association of British Insurers (ABI), the trade body for insurers that was formed in 1985 and has over 250 member companies, accounting for over 90% of the UK insurance market.
It collects stats on quotes and claims from members and says its data “offers the most comprehensive coverage” of the market.
Its motor statistics cover quarterly and annual premiums, claims, distribution and fraud.
Headline figures such as the average cost of insurance are published on its site for free but you have to pay for more detailed information.
With such a large volume of data, the ABI’s average should offer a good picture of the price of insurance. However, the average is likely to include all types of policies for all age groups so it can be difficult to apply it to individual circumstances.
MoneySuperMarket – Average: £470 a year – MoneySuperMarket’s average is close to ABI’s so it’s fair to assume it also covers all types of car insurance and all drivers. It says its figure comes from “MoneySuperMarket data” for March to May 2016.
Because it acts as a comparison site for dozens of insurers it is likely to have a lot of information about quotes for UK consumers. However, it’s worth noting that not all insurers appear on their site. For example, Direct Line does not feature on comparison sites.
MoneySuperMarket says prices jumped 11.8% in 2016 compared with 2015 and compared with 2014 the change is even more significant. The average cost in spring 2014 was £390 so prices have soared 22.6% since then.
Confused.com – Average: £827 a year – Confused’s average is much higher than the others we looked at. It only provides figures for comprehensive car insurance, which may explain the difference.
The figure is part of its Car Insurance Price Index, which began in 2006 and is the most comprehensive analysis of car insurance pricing in the UK, according to Confused. It is published every three months and looks at more than four million car insurance quotes, presumably generated on Confused.com.
The index is useful because it breaks down the data by categories such as age, gender and location. For example, its most recent study says an 18-year-old pays £2,272 on average for comprehensive cover and a 66-year-old pays £460. It also says prices have increased £101 on average year on year.
Business Insurance Cost
How Much Does Business Insurance Cost?
How to Reduce Your Business Insurance Rates
If you’re just opening up shop, you are probably wondering what risks you need to cover with insurance. You will need to cover a range of risks and potential incidents, like accidents, injuries, equipment damage, theft and liability claims. Even if you have a well-established corporation, you may be wondering if the coverage you do have is right for your needs and is fairly priced. Is it possible you can get the same or better coverage elsewhere for less?
An experienced independent insurance agent can help you assess which of the many types of commercial coverage are appropriate for your business, and can look for all available discounts on your behalf. Contact an agent in the Trusted Choice network who specializes in commercial insurance to get a complete assessment of your needs. Independent agents can not only help you compare business insurance plans and prices, but can also help you get all of your business coverage from one office.
Insurance for Everyone.
Business Insurance Nearly Every Company Needs
- General liability insurance
- Property insurance
- Commercial auto insurance
- Workers compensation
- Directors and officers insurance
- Data breach coverage
- Business umbrella policy
The right coverage for your company will be some combination of coverage types, which may be offered separately, but can sometimes be packaged into a business owner’s policy, also known as a BOP, which typically gives you a cost savings as a bundled plan.
Your Business Insurance Rates Are Unique to Your Company
Each type of business coverage in your policy will provide an important and specific type of protection. You may need some or all of the recommended coverage types. You may need other types of coverage too, such as errors and omissions insurance (“E and O”), also known as professional liability insurance. Calculating your specific costs depends upon the blend of coverage you need, and how much.
For example, if you are a sole proprietor, you typically do not need to buy workers comp, so you do not need to calculate that coverage into your costs. As another example, if you transport equipment and business supplies from one location to another, you will need inland marine insurance. You may also need additional liability coverage if the materials your workers transport is hazardous, or if your employees or contractors drive big rigs that can do millions of dollars-worth of damage in an accident.
If you sell products, you will most likely need product liability insurance. If you have employees who handle money or have access to funds, you may want special protection against business fraud. Your property insurance alone may cost you a quarter of a million a year if you have big risks – such as a professional sports arena. You may pay $500 per year as a small business owner, or over $500,000 per year as a major corporation.
Every company is unique. The products and services sold, the size of the company and the risks workers face all contribute to business insurance rates.
Business Liability Insurance Costs
While there really are no average business liability insurance costs for both small and large businesses, we can consider some sample scenarios.
- A sole proprietor might pay $500 per year for general liability insurance, but a small consulting firm is likely to pay over $3,000 per year.
- A sole proprietor who hems garments out of a home office has limited liability concerns, but a landscaper may pay upwards of $15,000 annually due to increased risk.
Costs will vary considerably depending on the specific risks of the business. Professional liability insurance costs are in that same ballpark. Also called errors and omissions insurance, or E & O, this type of business liability insurance covers the “human error” risk when you give advice or offer consultation. While this coverage is typically associated with advisors such as accountants and consulting firms, many different types of small businesses carry this coverage to hedge against the risk of a law suit. Average business insurance costs for E & O coverage for small firms is typically in the range of $1,000 to $3,000 annually per million dollars of coverage.
Insurance for Everyone.
Looking for the Best Business Insurance Rates
There are many ways to package policies, get discounts, and reduce your business insurance costs. For example, small business owners can often get a combined policy that provides all the basic coverage a small business needs. Known as a “business owner’s policy” or “BOP” this type of packaged policy can make the cost of business insurance very affordable for small a small enterprise.
Be sure to work with an agent who is experienced and knowledgeable in commercial coverage when seeking business insurance quotes. If you are like many business owners, you have put your life blood into building your company. Working with an agent can help you make the best decisions and balance both your risk management and cost saving strategies.
How Independent Insurance Agents are Uniquely Able to Help Business Owners
Independent agents in the Trusted Choice network who specialize in commercial coverage have a unique capability. They can provide quotes for your company from a wide range of insurance carriers, and can help you with every aspect of your business insurance, from product liability to workers comp to commercial vehicle insurance – all out of one office. This means you don’t need to go to a range of insurance companies to get all of your needs met.
Independent agents in the Trusted Choice network are based out of 27,000 member agency locations across the US, which means there is a local agent right near your business. It also means you can work with a real person who fully understands your state’s regulations and ensure that you are in compliance.
Getting Business Insurance Estimates for Your Company
The right coverage for your risks can help with everything from concerns about property damage to the risk of cyber crime. Start by assessing the hazards involved in running your business. A knowledgeable independent agent can help you assess those risks and can provide several business insurance estimates for the appropriate coverage to protect your company.
Make sure you have adequate coverage to protect your business investment so you’ll be there to serve your customers tomorrow. Find a Trusted Choice member agent today and get the quotes and personal assistance you need to get the right business coverage for your company at an affordable rate.