Commercial Auto Insurance PA

Commercial Auto Insurance PA: All You Need to Know

A growing fleet of vehicles and the soaring prices have added to the commercial insurance PA industry’s growth 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, and the top 10 best insurance companies composed 42.6% of the total US market.

There are multiple commercial auto insurance options that work with independent agents, 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.

A big white truck driving behind a car in PA.

What is Commercial Insurance?

Commercial insurance protects businesses and covers them against losses resulting from damage to property, bodily injury, medical payments for employees, and it is a term commonly used to label leading business insurance in PA. At the same time, it covers general liability and employer’s liability.

Types of Commercial Auto Insurance in PA

The commercial auto policy has different forms, and it depends on your business, which one your business needs. A typical businessman probably needs more commercial insurance policy than a professional writer. It is because risks vary from business to business, and 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 put it in place.

Some other commercial insurance covers created to protect businesses are similar to public liability, employers’ liability, and professional indemnity. They are specialist commercial auto insurance covers.

  • 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 are required to have commercial auto policies with a minimum liability limit of $15,000 per person, $30,000 per accident for bodily injury, and $5,000 for property damage. Business owners are also legally required to carry medical benefits coverage that will help them pay for the medical expenses as a result of an accident.

How Much Does Commercial Auto Insurance Cost in PA?

Commercial auto insurance protects the vehicles used by the business, 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 offers a more accurate approximation of how much the businesses might be paying than commercial auto insurance as it does not include the 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 that your business owns, the value of each vehicle, and how often these vehicles are used. Your business risks will also influence how much you will have to pay for a policy.

How Coverage Limits Influence Commercial Vehicle Insurance Costs

If you want your coverage for a broader range of damage, you can pay more for your policy. The initial coverage costs are lower than the high coverage limits. For small businesses, the central limit is $1million for a commercial auto insurance policy. Commercial vehicle insurance policies may vary depending on the coverage that your business buys.

What Are Quotes for Vehicle Insurance?

A vehicle insurance quote is an estimated cost of the policy that you are going to pay. It can be calculated depending on the information you provide, such as your age, the car you use, or your driving history, and your address.

Insurance companies have their own 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, and they may vary from one company to another. It also depends on the risk you have, 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 different quotes because they have a different way of calculation or estimation.

Best Pennsylvania Commercial Vehicle Insurance for 2022

One of the great ways of finding the cheapest commercial vehicle insurance quotes online is looking around comparing coverage and other companies’ coverage and rates. In almost all states, drivers are recommended to have auto insurance commercials. However, if you have a lot of questions about insurance, you have to look around quickly.

If you are searching for cheap commercial vehicle insurance in Pennsylvania, looking around is the key. Although it has the same coverage, they could have differences depending on the insurer. So it is wise to look around and compare quotes. To do this as smoothly as possible, you can check the internet for some research on average prices from PA’s largest insurance companies. Find the cheapest insurance options for different types of drivers.

How to Get Cheap Commercial Auto Insurance in PA

Drivers who are not involved in recent accidents or violations are able to 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 precise driving data and good credit. 

Pennsylvania drivers can also buy minimum coverage of commercial vehicle insurance at a lower price. These estimates were based on average rates for 40-year-old good drivers who have minimum insurance, which is mandatory 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 for the wider coverage. 

If you have a blemished 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 years 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 offer their customers not just coverage at a reasonable price, but a customer-first experience from the quote to claim. 

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

However, the price is often an essential part of the search; it is better to compare car insurance quotes to help you with a better choice of the cheapest rate. Your shopping experience will give light to your customer service standards.

Many businesses use vehicles in their business, to transport goods for a fee and a 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, commercial auto insurance in PA offers higher policy limits than personal auto insurance. Hence, it can provide your business safe 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!

Read also: Ultimate Guide on Commercial Fleet Insurance