Finding the Best Price for Commercial Auto Insurance for Your Work Truck (Or Fleet of Trucks)

Build Your Business

Author: Amy Freeman | October 11, 2023

You're driving your truck or van to your next roofing jobsite, and you get into an accident. Your personal auto insurance policy will cover any liability or damage to the vehicle, right? Maybe not.

A roofer thinking about his commercial auto insurance options while sitting in his truck.
Even if you only have one vehicle, your roofing business needs commercial auto insurance.

While personal auto insurance policies offer coverage if you're using your vehicle to commute to and from work, they don't offer coverage for business use of a vehicle, according to the Insurance Information Institute (III). Whether you use a single well-traveled pickup for your roofing business or operate a whole fleet, you need to find the best price for commercial auto insurance to protect your company's vehicles.

Shopping for commercial auto insurance is similar to shopping for personal auto insurance. You want to choose a policy that offers the amount of protection you need that will cover the appropriate vehicles while working within your business' budget.

Personal vs. Commercial Auto Insurance

Commercial auto insurance is different from personal auto insurance in several ways. A significant difference is the amount of coverage you get from each type of policy. Business auto insurance policies typically offer a minimum of $500,000 in liability protection, according to the III. Coverage limits usually range from $500,000 to $1 million — considerably higher than the limits for personal policies.

With a commercial auto insurance policy, you typically have a combined limit for both liability coverage and physical damage, such as collision coverage. If you choose a policy with a limit of $500,000, that limit is for both liability and damage. With personal policies, there are usually separate limits.

How Much Auto Insurance Do You Need?

When deciding how much coverage your business needs, consider the type and number of vehicles you need to insure. Your policy can cover a single vehicle, such as your pickup truck or van, or it can cover every vehicle your business owns or leases. Be sure to choose a policy that provides coverage for any vehicle used for your business, even if your company doesn't own the car or truck, in case you need to cover workers' vehicles used for business reasons.

Choosing the Right Commercial Auto Insurance Policy

There are a few things to pay attention to when choosing the best insurance policy for your roofing business. The price of the policy's premium is important, but you don't want to skimp on the coverage you need to get a lower price.

First, think about the type of vehicles you need to protect. Are you covering a single truck, or do you want to offer coverage for your team to use their personal vehicles to haul bundles of shingles and racks of tools?

Next, consider the amount of damage protection you need. If you drive a new van in an area prone to rainstorms and falling tree branches, you might want to choose more coverage. If your vehicle is older or not worth very much, it might be more cost-effective to have less.

Also, don't forget about the accessories attached to your truck or van. If your business owns a pickup truck with a built-in toolbox, you might want to purchase insurance that also covers the contents of the toolbox, according to the State of Oregon.

Compare and Contrast

Just as you would when getting personal auto insurance, it's worthwhile to shop around and collect quotes from insurance companies that provide coverage in your state. The best price for commercial auto insurance depends on not only the dollar amount you pay, but also the protection it gets you. Compare the cost of the premium to the amount of coverage you get. It might also be a good idea to look at your deductible options. Paying out-of-pocket after an accident can reduce your premium significantly, making a policy that was previously out of reach more affordable.

Whatever you do, don't go without insurance on the vehicles you use for business. Proper insurance coverage is a must-have in any state, and the risks of going without it outweigh the gamble of not having to pay a premium.

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