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April 29, 2024
Facil Insurance

Commercial Auto Insurance

Operating a business often involves the use of vehicles. Whether for delivering goods, transporting employees or providing services, commercial vehicles are vital to many businesses. Commercial auto insurance can help provide essential financial protection for your organization.  

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Understanding Commercial Auto Insurance 

Commercial auto insurance is designed to help cover vehicles used for business purposes. Unlike personal auto insurance, which covers your vehicle for personal use only, commercial auto insurance covers the unique risks associated with the business use of a vehicle. This could include transporting goods or people, towing a trailer used for business or employees driving a company car. 

Who Needs Commercial Auto Insurance?  

In Arizona, if your business uses vehicles, regardless of size or type, you are required to have commercial auto insurance, including bodily injury and property damage liability coverage that meets the state’s minimum requirements. If your company uses certain types of heavy trucks, you may be required to purchase additional commercial auto liability insurance coverage.  

Your agent can help determine how best to insure your business against the risks and perils associated with using vehicles for business purposes.  

How Much Does Commercial Auto Insurance in Arizona Cost? 

Numerous factors can influence the cost of commercial auto insurance, including the following: 

  • Industry and profession—Higher-risk professions, such as specialty trade contractors who travel frequently for work, typically pay more for commercial auto insurance.  
  • Vehicle type and value—The insured vehicle’s size, potential repair and replacement costs significantly impact your commercial auto insurance rates.  
  • Coverage choices and policy limits—Commercial auto insurance is highly customizable, and the policies and endorsements you choose can trigger higher premiums. A policy providing liability coverage typically costs less than a policy that includes comprehensive and collision insurance coverage.  
  • Driving history—Employees who will drive company vehicles and who have at-fault accidents or moving violations on their driving record can cause higher commercial auto insurance rates. Your insurer may run motor vehicle reports on employees who drive company vehicles.  

It’s essential to shop around for appropriate commercial auto insurance coverage. Your agent can help your company compare quotes to get favorable rates.  

Contact Us 

Contact Facil Insurance LLC in Phoenix, Arizona, to learn more about your commercial auto insurance options and get a personalized quote.  

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information. 

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