Commercial Auto Insurance in PA

Commercial Auto Insurance PA: All You Need to Know

A growing number of vehicles and soaring prices have added to the commercial insurance industry’s growth in PA these past years. 

According to the DMV, there were over 9 million licensed drivers in Pennsylvania in 2021. 

In the meantime, according to the NAIC report, the commercial auto insurance PA industry had noted a 40.5% billion in written premiums in 2018. Plus, the top 10 best insurance companies comprise 42.6% of the US market.

Multiple commercial auto insurance options like East Insurance Group work with independent representatives, brokers, and benefits consultants across the United States, including Pennsylvania. 

A great insurance agency comes with a 24/7 service by phone or online. It has adjustable coverages, flexible billing and payment options, adjust to commercial claims, and an unlimited travel radius. 

Commercial auto insurance policy offers general liability, physical damage, and underinsured and uninsured driver coverage for small and large commercially possessed vehicles.

How does commercial auto insurance work in PA? And how can you lower your costs?

Read on to learn everything you need to know. 

What is Commercial Insurance?

A big white truck driving behind a car in PA.

Commercial insurance protects businesses and covers them against losses resulting from damage to property, bodily injury, and medical payments for employees. It’s a term commonly used to label popular business insurance in PA

At the same time, commercial insurance covers general liability and employer liability too.

East Insurance Group offers insurance in Philadelphia, Scranton, Allentown, Reading, Levittown, Pittsburgh, and other cities in Pennsylvania. 

If you have questions or want to check the current prices, you can contact us today and get all the information you need fast and free!

Why is Commercial Auto Insurance Important?

In Pennsylvania, all vehicles must have auto liability insurance. If one of your commercial vehicles is at fault in a car accident, you could face a very expensive lawsuit. 

Without insurance, you would probably have to pay for medical costs, property damage, and lost wages. 

Also, if you don’t carry auto insurance, you could be fined $300 in Pennsylvania and even have your license suspended for 90 days. 

How Does Commercial Vehicle Insurance Work in Pennsylvania?

As mentioned above, all vehicles in Pennsylvania are required to have a minimum amount of auto liability insurance coverage. 

These requirements are:

  • Bodily injury liability: $15,000 per person / $30,000 per accident 
  • Property damage liability: $5,000 per accident
  • Medical benefits: $5,000

Furthermore, tractor-trailers, semi-trucks, and other vehicles with a Pennsylvania Department of Transportation serial number will have additional liability coverage requirements, depending on vehicle type and use. 

When Do You Need Pennsylvania Commercial Auto Insurance?

Having commercial auto insurance in PA is always useful, but there are certain situations in which this policy is especially important. Here are some of them:

  • When transporting people or goods with your vehicle
  • When your employees use a vehicle you own for business purposes
  • In case of a car accident (in which your car was used for business purposes)

How is Pennsylvania Commercial Auto Insurance Different From Personal Auto Insurance?

There are a few ways in which PA commercial auto insurance and personal auto insurance differ, including: 

  • Commercial auto insurance is sometimes more expensive than personal auto insurance.
  • Commercial auto insurance usually has higher coverage limits.
  • Commercial auto insurance only covers drivers listed on the policy.

Types of Commercial Auto Insurance in PA

Commercial auto policies have different forms, and it depends on your business which one your business needs. A typical businessman probably needs a more commercial insurance policy than a professional writer. This is because risks vary from business to business; for big companies, the risk is also more significant.

For large businesses, it is ideal to have public liability and professional indemnity. On the other hand, an employer’s liability is a vital cover for any company with one or more employees. 

However, you should be aware of the legal requirement since you might be breaking the law if you don’t have liability coverage.

Some commercial insurance protects businesses in ways similar to public liability, employer’s liability, and professional indemnity. They are specialist commercial auto insurance covers like:

  • Product liability coverage
  • Business buildings coverage
  • Business contents coverage
  • Business interruption coverage
  • IT equipment and laptop cover
  • Stock insurance
  • Tools and machinery insurance
  • Plant and machine insurance

Pennsylvania Commercial Auto Insurance Requirements

All business owners in Pennsylvania must have commercial auto policies with a minimum:

  • $15,000 per person for liability
  • $30,000 per accident for bodily injury
  • $5,000 for property damage 

Business owners are also legally required to carry medical benefits coverage to help them pay for the medical expenses due to an accident.

Read More: Compare Commercial Auto Insurance Policies in Texas

How Much Does Commercial Auto Insurance Cost in PA?

Commercial auto insurance protects the vehicles the business uses, and the cost will depend on the number of cars and how they are used.

On average, the cost of commercial auto insurance in Pennsylvania is $1,476 per year. This cost more accurately approximates how much the businesses might pay versus commercial auto insurance as it does not include the extremely high and low premiums. 

Business Risks Influence Commercial Auto Insurance Costs

The cost of commercial auto insurance can be affected by the number of vehicles your business owns, the value of each vehicle, and how often these vehicles are used. Your business risks will also influence how much you have to pay for a policy.

How Coverage Limits Influence Commercial Vehicle Insurance Costs

You can pay more for your policy if you want coverage for a broader range of damage. The initial coverage costs are lower than the high coverage limits. 

For small businesses, the central limit is $1 million for a commercial auto insurance policy. Commercial vehicle insurance policies may vary depending on your business’s coverage.

What Are Quotes for Vehicle Insurance?

A vehicle insurance quote is an estimated cost of the policy you will pay. It can be calculated depending on the information you provide, such as your age, vehicle type, driving history, and address.

Insurance companies have their way of calculating a commercial auto policy quote. Given the information you provided, the insurer will be able to provide you with quotes. The more quotes you have, the better chances you can find the cheapest commercial vehicle insurance company for you. 

Several factors can influence your auto insurance quote, depending on your risk, like a company may raise your living rates in a high-risk crime area. Even the same insurance companies look into the amount of crime in your neighborhood. However, they may still provide you with different quotes because they have different ways of calculating quotes.

Best Pennsylvania Commercial Vehicle Insurance for 2022

One of the great ways of finding the cheapest commercial vehicle insurance quotes online is by looking around and comparing coverage and rates. 

If you are searching for cheap commercial auto insurance in Pennsylvania, you can check the internet for some research on average prices from PA’s largest insurance companies. Or you can reach out to us, and we’ll help you find the right quote for free

What If I Use My Personal Vehicle for Work?

If you use your vehicle for business purposes, your personal auto policy won’t cover you in case of an accident. This is also why small businesses often purchase hired and non-owned auto insurance.

If you or your employees get into an accident while driving a personal car for work, your hired and non-owned auto insurance will cover any claims and lawsuits against your business. 

What Else Does Commercial Auto Insurance Cover?

A typical commercial auto insurance policy includes: 

  • Uninsured motorist coverage: Covers personal injuries and damages that involve a company vehicle.
  • Medical payments coverage: Covers medical expenses if employees and passengers get injured in a business-owned car.
  • Collision coverage: Covers the repairing or replacing your company vehicle if it gets damaged in an accident. 
  • Comprehensive coverage: Covers the costs of vandalism, theft, and other non-collision damages. 
  • Towing and labor coverage: Covers roadside assistance costs for company-owned vehicles. 
  • Bobtail coverage: Covers the insured vehicle in all cases, even in non-work-related situations. 

How To Get Cheap Commercial Auto Insurance in PA

Drivers who are not involved in recent accidents or violations can get more affordable commercial vehicle insurance rates for having good credit. Insurance companies are ranked based on their average coverage rates for 40-year-old men and women with good driving data and credit. 

Pennsylvania drivers can also buy minimum commercial vehicle insurance coverage at a lower price. These estimates were based on average rates for 40-year-old good drivers with minimum mandatory insurance coverage in their state. Although this coverage is not recommended as it does not cover bills resulting from an auto accident, it is still better than nothing, especially if you don’t have enough money to buy the wider coverage. 

If you have an imperfect credit history, it is important to look around to find the cheapest auto insurance rates. Poor credit history can affect auto insurance premiums more than having a DUI violation or a recent at-fault crash, but prices may vary from one insurer to another.

Getting into a minor collision, some auto insurers charge more than others. The rates will remain high for 3-5 years, so you should shop around for new insurance rates after three or five years of your at-fault crash.

Furthermore, Pennsylvania’s state minimum liability limit 15/30/5 is also called a split limit because it splits the dollar amount payable by your insurer for property damage and bodily injury into three groups:

  • $15,000 for each person injured in an accident
  • $30,000 for all people injured in an accident
  • $5,000 for all property damaged in an accident

The best commercial auto insurance companies in PA offer their customers not just coverage at a reasonable price but a customer-first experience from your quote to your claim. 

Pricing and discounts depend on the insurer’s score and are the main factors for those looking for auto insurance. Since cost is based on personal traits like age, location, vehicle, and credit history, it is vital to shop around for auto insurance quotes. 

Many businesses use vehicles to transport goods for a fee, so their business has specific liability and risk.

 As a business owner, you are at high risk for higher liability and property damage claims when transporting people or goods due to the network of work. So acquiring this coverage will protect you and your business from possible exposure to uncovered liabilities that result from a severe accident. 

At the same time, the best commercial auto insurance in PA offers higher policy limits than personal auto insurance. Hence, it can protect your business from possible lawsuits and other liabilities.

Are you still confused about commercial auto insurance in PA, or do you need some help getting a quote for your business? Contact us today and get all the information you need fast and for free!

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