How much does Commercial Auto insurance cost vs. Personal Auto insurance?

How much does Commercial Auto insurance cost vs. Personal Auto insurance?

How much does Commercial Auto insurance cost vs. Personal Auto insurance?

Maybe you’re about to start your very first business, or maybe you’ve had your business going but the thought of it made you cringe – so let’s answer the question: Is commercial auto insurance more expensive than personal auto insurance and by how much?

The answer? Commercial insurance usually doesn’t cost more than personal auto insurance. In fact, I have seen situations where a commercial auto insurance quote is less expensive than a personal auto insurance quote offering similar coverage.

Factors at play.

With both types of auto insurance (business auto insurance vs. personal auto insurance), there are many factors that go into determining your rate of insurance. With commercial insurance, there are a few more factors introduced: the type of business operations, the number of drivers/employees, the age of these drivers, the number and type of vehicles, and of course the type of coverage desired. In most categories of “business” the rate of insurance is comparable to the rate of personal auto insurance. The categories that may see a higher rate are categories whose primary business are related to driving – such as a moving company, livery service, or a food truck. The other factor that may cause commercial insurance to be higher is the type of vehicle – it should go without saying that a $150,000 bucket truck is going to cost much more to insure than a $25,000 sedan.

Be honest with your insurance carrier.

At the end of the day, you want your insurance to work for you when you need it to. And being forthcoming and honest with your insurance company and your insurance agent is the best place to start. If you are misrepresenting how you are using your vehicle, you risk the potential of having your insurance claim denied by your insurance company. If you are concerned about the cost of commercial auto insurance, be honest about that with your insurance agent – and let them know what your insurance budget is. As an insurance agent we have a responsibility to recommend good comprehensive coverage at an affordable price, but with a budget in mind we can then go the extra mile and make responsible suggestions about where to start making changes when it comes to lowering the cost. While it may not be what is fully recommended, it can give you a starting point so you’re insured and as the business grows and so does the insurance budget, you can increase your coverage accordingly.

If you are interested in getting a commercial auto insurance quote, let our team at Evolve Insurance Agency help. We can quickly get started on a quote for you by calling our office at (941) 244 - 2760


When should I get commercial auto insurance quotes?

If you are unsure about when it’s time to seek out commercial insurance quotes, I would say speak with your insurance agent. In most cases, if you are on a revenue-earning endeavor and your vehicle is driven in pursuit of that endeavor, it’s likely time to start thinking about commercial auto insurance. Here are a few business pursuits that absolutely need business auto insurance:

  • Contractors who drive from jobsite to jobsite (like electricians, plumbers, landscapers, painters, etc.)
  • Sales jobs where vehicles are used for going from one sales visit to another.
  • Livery or For-Hire services (like taxi drivers, airport runners, merchandise delivery, food delivery, etc.)
  • Food Trucks, Restaurant Catering
  • Janitorial / cleaning services.


What information will be needed to get commercial auto insurance quotes?

In addition to the information required during a personal auto insurance quote, we would need to know the name of the business, the business operating address, the type of business, the FEIN number and USDOT number (USDOT numbers are not typically necessary). For certain specialty vehicles (like box trucks, bucket trucks, etc.) we may need more information about their vehicle – and in some cases may request a photo so we can accurately provide a quote.

You said I need a USDOT number for a quote, I don’t have it – do I need it?

A USDOT number is a unique number assigned to your business so safety audits and accident activity can be tracked to individual businesses. This is only required if you conduct business that involves hauling passengers or cargo over state-lines. For most locally-based businesses a USDOT number will not be necessary.

Photo by Tima Miroshnichenko from Pexels