And, importantly, the driving records of those who operate the vehicles also factor into your policy’s rates. After all, drivers with tarnished records are more likely to have accidents in the future. Additionally, companies with a longer history of losses or insurance claims are likely to pay more than other businesses for commercial auto insurance. Therefore, if you have a driver on your commercial auto policy who has a tarnished record, you are putting yourself on the line for added cost risks that could drive up your rates.  

For the insurance company, each of these factors add up to how likely your company is to file an insurance claim. If you have drivers on the policy with bad driving records, the insurance company is likely to charge more since the drivers may file a claim due to their history. 

What Will Commercial Auto Insurance Cost? 
All commercial auto insurance policies vary in price. A ballpark estimate provided by HowMuch.Net places the average price between $900 and $1,200 per year. Again, however, based on many factors, including the amount of coverage you buy, your precise premiums will vary. You must buy at least the coverage that is required of you by law, and in forty-nine states, commercial auto insurance is mandatory. 

Heavier vehicles and vehicles that carry hazardous materials will cost more to insure because of the unique risk these vehicles pose to other people. States generally require businesses with these kinds of vehicles to carry a higher amount of liability insurance, as well. 

How Can I Save On My Rates? 
Though, of course, some factors that influence your commercial auto insurance costs are beyond your control, there are many other practical ways that you can work positively influence your rates. 

Consider the following when working to keep your rates favorable: 

1. Conduct background checks on all drivers. This is important both for saving money and making sure that you’re putting drivers on the road that you can trust behind the wheel. When considering prospective hires, ask for a driving record. Periodically re-check these records to see if a driver has received any significant driving charges. 

2. Add protection to the vehicles such as anti-theft locks. Lowering the likelihood of filing a claim can save money on commercial auto insurance. 

3. Ask about bundling. Some insurance companies have opportunities to bundle your commercial auto insurance policy with other insurance benefits. 

4. Ask about discounts. Most commercial auto policies come with many of the same discounts as private policies. 

5. Avoid claims when possible. Sometimes, the cost of repairing damage is less than the cost of your deductible. In this case, it may be best to simply repair the damage out of pocket. 

While you can choose lower amounts of coverage in order to reduce your rates, you should only do so on the advice of your insurance agent. You must carry all coverage that is legally required of you, but you are highly encouraged to purchase more substantial coverage and optional benefits. The more coverage you have, the better your company will be able to withstand the ramifications of vehicle accidents and countless other hazards.