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    California Commercial Auto Insurance

    California Commercial Auto Insurance

    Many of California's 3.9 million small companies require commercial auto insurance to protect their vehicles from accidents and other disasters. Commercial vehicles are frequently exposed to more liability than personal vehicles, so personal auto policies rarely cover them.

    More than 700,000 small business owners trust us to secure their work cars and livelihoods across the country. However, when looking for commercial auto insurance, it's important to remember that not all insurance companies are the same and offer the same coverage. 

    Read on to learn how to get California business insurance and how it can help you run a successful company. 

    Requirements For Commercial Auto In California

    California state law mandates a minimum liability coverage of $15,000 per person, $30,000 per accident for bodily injury, and $5,000 for property damage on all commercial auto plans (i.e., 15/30/5). Because of the sorts of vehicles they insure, some policies are mandated to have greater limits.

    Separate coverage criteria will apply to automobiles with a USDOT or CA state serial number. Semi-trucks and other large vehicles traveling interstate, for example, must carry a minimum combined single limit of $750,000, according to the Federal Motor Carrier Safety Administration (FMCSA).

    What Commercial Auto Insurance Covers In California

    Essentially, commercial automobile coverage protects your organization against any responsibility arising from the usage of autos in your business and any damage to the insured vehicle. 

    A commercial auto insurance policy might provide coverage for business, personal, non-owned, or hired autos based on the coverage acquired and applied to each scheduled auto. 

    As a result, autos and their associated coverages may be arranged independently. Vehicle coverage varies, and a symbol or multiple symbols identify the coverage provided to a scheduled vehicle.

    Medical Payments CoverageIf employees and passengers are harmed in a company-owned vehicle, regardless of fault, this coverage pays for medical bills.
    Comprehensive CoverageNon-collision damages such as vandalism, theft, water, or fire are covered.
    Loading And Unloading CoverageThis protects equipment and commodities from damage during transport, loading, and unloading.
    Collision CoverageThis covers the cost of repairing or replacing your work car if it is damaged in an accident, regardless of who is to blame.
    Towing And Labor CoverageFor company-owned automobiles, this covers the expense of roadside assistance.
    Bobtail CoverageWhen utilizing tractors without a trailer, this is advised. It normally covers the insured vehicle at all times, including while it is not being used for work.

    Cost Of Commercial Auto Insurance In California

    Cost Of Commercial Auto Insurance In California

    For most small business owners, commercial auto insurance will cost between $50 and $200 per month or $600 to $2,400 per year. This applies to each business vehicle they have covered.

    Commercial auto insurance rates are determined by a variety of factors. A unique combination of factors will determine your monthly commercial auto insurance cost.

    The most straightforward approach to determining the cost of your commercial auto insurance is to request quotations. You can customize your policy to your particular requirements.

    Commercial Vehicle Registration In California

    According to research, the annual average cost of commercial vehicle insurance in California is approximately $14,000. This includes coverage for liability, cargo, and physical damage for a single truck. Insurance coverage might range from less than $12,000 to over $16,000.

    Consider these rates as benchmarks. Numerous variables affect the cost of coverage, including:

    • Driving history
    • Vehicle value
    • What you haul
    • Number of trucks
    • Number of drivers,
    • Years in business

    Partial Year Registration

    Partial year registration (PYR) may be used for commercial motor vehicles not operated during a calendar year. PYR may be valid for any period between 1 and 12 months.

    Applying For The PYR

    PYR registration is allowed for commercial vehicles for a period of one to twelve months, but not longer.

    • Within 20 days of the initial operation, original registration applications must be submitted.
    • After that, renewal requests must be made before the vehicle is driven, relocated, or abandoned on the roadways.

    The full-year registration price, the vehicle licensing charge, and prorated weight fees based on the number of consecutive months the vehicle will be operated are all required for the first PYR registration in a calendar year.

    • A service fee is also charged.
    • Following registrations within the same calendar year are subject to service charges and prorated weight costs based on the number of consecutive months the vehicle will be used.

    How To Register Commercial Auto Vehicles In California

    A vehicle that needs to be registered and that is either designed, used, or maintained primarily for the transportation of property, or that is used or maintained for the transportation of people for hire, compensation, or profit. The following vehicles can be registered as either commercial or passenger vehicles:

    • Vehicles with several uses.
    • Vehicles of the passenger type transport people for hire.
    • Trucks with a camper permanently affixed to the back.
    • Station wagons

    Step 1: Fill out the Application for Title or Registration (REG 343).

    Step 2: Declaration of Gross Vehicle Weight (GVW)/Combined Gross Vehicle Weight (CGW) (REG 4008)

    Step 3: Fill out the Verification of Vehicle (REG 31)

    Quick Traffic Safety Stats In California 

    • 3,798 traffic fatalities occurred in 2018, while 3,606 did so in 2019.
    • The number of fatalities per 100 million miles traveled in 2019 is 1.06, or the Mileage Death Rate (MDR).

    Alcohol-Impaired Driving

    • Southern and central California had the highest concentration of alcohol-related fatalities and serious injuries, with Los Angeles County having the highest rate.
    • Drunk driving was the second most often mentioned safety issue, and its mentions increased from 5.6 percent in 2016 to 22.9 percent in 2017.

    Drug-Impaired Driving

    • 42% of all drivers who died in car accidents in 2018 and were tested returned positive drug tests for both legal and illicit substances.
    • Marijuana, cocaine, heroin, hallucinogens, inhalants, and methamphetamine were among the illicit drugs used by 1.4% of the nation's 12.6 million drivers in 2018.

    Occupant Protection

    • All sitting positions had a 2.4% drop in unrestrained passenger car occupant fatalities from 635 in 2018 to 620 in 2019.
    • The third-highest use percentage in the country was found to be in California, where front seat belt usage was reported to be 95.9%.

    Frequently Asked Questions  

    1. Is it a legal requirement to have commercial vehicle insurance?

    Except for New Hampshire and Virginia, every state has a requirement for commercial auto insurance. Drivers may still be liable for damages in states where it is not mandated by law. Look into your state's regulations on commercial auto insurance.

    Hired and non-owned auto insurance can cover vehicles that your company uses but does not own, including employee vehicles or leased trucks (HNOA). The law does not need this policy. However, since business use is often not covered by personal auto insurance policies, this policy is crucial for companies that depend on rented cars that need commercial auto insurance coverage.

    2. How much coverage do I need for my business vehicle?

    Each state determines what level of commercial auto insurance is necessary. That includes a certain sum for uninsured motorist coverage, property damage liability coverage, and bodily injury liability coverage.

    To satisfy state regulations, you can get the bare minimum of coverage; if you want to be able to submit larger claims under your policy, you can buy extra coverage.

    3. Should I obtain higher limitations than those mandated by law?

    Higher liability limits than what the law demands may be what you want. In general, the likelihood that you will lose in court depends on the number of your assets. You should talk to your agent, broker, insurance provider, or financial counselor about your situation.

    The most straightforward approach to determining the cost of your commercial auto insurance is to request quotations. You can customize your policy to your particular requirements. To learn more about commercial insurance for vehicles in California, visit Assured Standard today.

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    Assured Standard will protect your business with the right insurance, depending on your needs. Now more than ever, it’s crucial to have the right general liability insurance experts on your side. Protecting the future of your business starts today.
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