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.
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).
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 Coverage | If employees and passengers are harmed in a company-owned vehicle, regardless of fault, this coverage pays for medical bills. |
| Comprehensive Coverage | Non-collision damages such as vandalism, theft, water, or fire are covered. |
| Loading And Unloading Coverage | This protects equipment and commodities from damage during transport, loading, and unloading. |
| Collision Coverage | This 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 Coverage | For company-owned automobiles, this covers the expense of roadside assistance. |
| Bobtail Coverage | When 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. |
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.
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:
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.
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 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:
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)
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.
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.
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.
