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    Florida Commercial Auto Insurance

    Florida Commercial Auto Insurance

    Automobiles are costly assets. According to the Federal Highway Administration, in 2019, 93% of American households had access to at least one car. Between 2012 and 2019, the number of registered vehicles fell by more than 25 million.

    As a result, buying, maintaining, and selling them necessitates attention to detail and proper Florida commercial auto insurance coverage. Many of Florida's 2.5 million small businesses require commercial auto insurance to protect themselves from liabilities arising from various incidents involving their work vehicles.

    Personal auto policies typically do not cover vehicles used for business because they are subject to greater liability than personal vehicles. Read on to know more about the cost, coverage, and requirements of commercial auto insurance in Florida.

    Requirements For Florida Commercial Auto Insurance 

    There are many different types of commercial vehicles, so let's look at some basic requirements for everyone and some optional coverages based on your industry.

    In Florida, all drivers are required to carry:

    • $10,000 per person bodily injury coverage
    • $20,000 in bodily harm per accident
    • $10,000 for property damage

    If you drive a taxi, you must carry significantly more coverage of:

    • Per person bodily injury liability of $125,000
    • Liability for bodily injury of $250,000 per occurrence
    • Property damage liability coverage of $50,000

    Furthermore, Florida and the Federal Motor Carrier Safety Administration (FMCSA) have additional requirements for cargo and shipping vehicles. If you are only transporting goods in Florida, the following commercial trucking insurance minimums apply:

    • Minimum liability insurance for household goods is $300,000
    • For general freight, the minimum liability insurance is $750,000.
    • Oil transport liability of $1,000,000
    • Liability for hazardous materials is limited to $5,000,000.

    What Does Commercial Auto Insurance Cost In Florida?

    According to data, the maximum and minimum commercial auto insurance policies in Florida as of 2021 range from $2,565 to $3,370 per year.

    The following are the approximate annual policy costs for various commercial vehicle types:

    • Standard business car: $600 to $2400.
    • Limousine: $4000 to $10,000.
    • Cargo or delivery van: $3300 to $6200
    • Taxi: $5000 to $10,000
    • Owner-operator semi-truck: $8000 to $12,500

    Other Insurance Types

    Knowing the different types of auto insurance and their coverages is important in getting the right policy for you if you want to cover your bases and get your commercial vehicles insured. Here are some of the most common types of car insurance, how they work, and what they cover:

    Quick Statistics On Commercial Auto Insurance In Florida

    • In Florida, there are about 400,000 car accidents annually.
    • In this state, commercial vehicles are involved in about 1 out of every 10 collisions.
    • More than 10,000 occurrences of serious bodily harm in Florida each year are caused by commercial vehicle accidents.
    • The cost of car insurance is increasing. The NAIC reports that between 2017 and 2018, there was a 5 percent increase, and between 2018 and 2019, there was a 1 percent increase.
    • Every year, at least 10 million collisions go unreported, according to the NHTSA. 

    Frequently Asked Questions About Commercial Auto Insurance In Florida

    Below are some of the frequently asked questions regarding commercial auto insurance:

    1. What kind of insurance do I require if my workers use their personal automobiles for work?

    For instance, your business may be held responsible for property damage and bodily injuries stemming from a traffic collision where one of your workers was at fault if they use their own vehicles to travel to clients for business purposes.

    Business owners occasionally are unaware of their exposure. Think about these instances:

    • On the way back from lunch, your office manager makes a stop at the office supply store to pick up a few things for the office.
    • A supervisor leaves a product sample at a client's office on the way home.
    • A salesperson in his personal automobile makes a quick stop to see a customer while on vacation.

    2. Who in Florida requires commercial auto insurance?

    Whether it's the owner's personal car or a fleet of vehicles the firm owns, any Florida business that employs automobiles for work needs commercial vehicle insurance.

    You are covered by your personal auto insurance when traveling to and from work, but not when making deliveries, gathering supplies, or engaging in other activities related to your place of employment. If you cause an accident while on business, a business auto policy would protect you and your personal vehicle.

    Regardless of whether you own a single pickup truck, a food truck, a fleet of semi-trucks and tractor trailers, or anything in between, any cars you own solely for work reasons must be protected by a commercial auto policy.

    3. Will Business Use Be Covered by My Personal Auto Policy?

    Some business uses of personal vehicles are covered by the owner’s personal auto policy. In a similar vein, certain work use of your employees' automobiles is covered by their personal auto policy as well (depending on the type of business).

    Even if not specifically excluded, the way you use your car might not pose a risk the insurance provider is willing to take on under personal auto coverage. When a usage poses too much danger, the insurance provider may impose a higher premium, decline to issue coverage, or terminate policies. A commercial auto policy can be the best option in these circumstances.

    Reliable commercial or business auto insurance remains competitive in small and large enterprises. However, finding the right commercial auto policy can make a big difference in your business's future.

    To learn more about bond insurance policies, license and permit bonds, and surety bonds for your business in Texas, read through our blogs at Assured Standard and grasp what smart long-term business solutions could look like.

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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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