Commercial auto insurance policies protect business owners from being liable for car accident damages to company vehicles. Policies also cover the occupants of the vehicles (drivers or clients) by providing compensation in case of accidents. So if you’re a business owner, it’s crucial to understand the ins and outs of commercial auto insurance.
While this article focuses on Progressive’s commercial auto insurance, Progressive policies may not be for everyone. It’s important to find commercial car insurance from a company that suits your budget and the vehicles you need, so our team of experts has evaluated the best auto insurance companies that offer commercial vehicle coverage.
What Does Progressive Commercial Auto Insurance Cover?
Commercial vehicle insurance from Progressive covers most of the same things that standard private car insurance policies cover: liability insurance, comprehensive insurance and more. Commercial insurance policies across many companies tend to offer the following the services:
Auto Accident Liability Coverage
Professional liability insurance in a commercial auto insurance policy may cover the cost of an accident that you caused. This can include the cost of repairs for the other party’s property or vehicle, legal costs if the other party sues or medical fees for injuries to the other driver.
For example, if your company driver rear-ends a small salon while driving to a client, your commercial auto insurance provider should be able to cover the repair fees of the salon and the driver’s injuries.
Collision Insurance & Comprehensive Coverage
Progressive commercial auto insurance has both collision and comprehensive coverage. Collision insurance will take care of your vehicle and property damages in the event of a crash, whether you are at fault or not.
Progressive’s commercial collision coverage takes care of your car if it’s damaged by something that isn’t related to a standard car accident. This can mean damages from the environment, like floods, hail and other natural disasters. Progressive’s commercial insurance can also cover damages from fire, theft, vandalism and things that collide with your vehicle incidentally, like falling trees.
Medical Payments Coverage
Commercial auto policies that cover medical costs are available to anyone involved and injured in an accident, regardless of who caused the accident. Progressive’s commercial policy covers entire medical payments and ambulance costs for your driver and the occupants in the commercial truck or car.
Uninsured Motorist Coverage
A 2021 research study conducted by the Insurance Research Council (IRC) revealed that approximately one in eight drivers were uninsured in 2019. On top of that, vehicles used for commercial purposes are also typically exposed to more harm compared to personal cars, anyway, which increases a business owner’s chances of having to file a claim against an uninsured driver.
When an uninsured motorist causes an accident involving your business vehicle, they may not be able to pay for damages. This is where a commercial auto insurance policy from Progressive comes in handy, as it covers the resulting repair costs and medical fees for both your employee and the uninsured motorist.
In some cases, the policy also covers underinsured motorists, where the driver at fault has insufficient insurance coverage.
Reasons To Get Commercial Auto Insurance
Whether you get a commercial vehicle insurance policy from Progressive or somewhere else, the coverage safeguards business assets against lawsuits and other liabilities. Commercial car coverage is also mandated in all states but Virginia and New Hampshire. Here are some other crucial reasons to get insurance coverage for vehicles in your business:
It Will Protect Your Employees
Most commercial vehicle insurance policies (including Progressive’s) will cover employees that drive the company vehicles. Personal vehicles that are used for company business and hired company cars are also covered. This ensures all-around protection for your employees.
Commercial vehicle insurance policies vary by company, so you should always consult with the insurance provider on its policy’s terms and conditions.
It Will Protect All Vehicle Types
While a general liability auto insurance policy may be used as coverage for your business vehicle, there is a limitation to the type of vehicles covered by the policy. This type of insurance is ideal for small personal vehicles like saloons, SUVs or pickup trucks.
A commercial or business owners policy, on the other hand, can be used for both small and heavy-duty vehicles, such as tow trucks, commercial trailers and dump trucks that are used in business. Furthermore, the policy offers specialized coverages, such as 24/7 claims service.
You Can Get Specialized Coverage
Commercial auto insurance policies from Progressive offer coverages specific to business vehicles, usually at no extra cost. With private auto insurance policies, these specialized coverages are considered add-ons that will cost more money.
That said, here are some specialized coverages included in many commercial auto policies:
This covers physical damage to vehicles you’ve hired, borrowed or rented for commercial use. It doesn’t often include vehicles owned by employees. Most insurance companies also require preconditions to provide this coverage. A common precondition may be that the totaled vehicle has pre-existing liability insurance and that company-owned cars have coverage against physical damage.
Lease or loan gap coverage
If your business is leasing or making loan payments on a vehicle, a commercial auto insurance policy is what you need. When the car gets totaled, this insurance coverage will pay the remaining loan balance to the bank or car dealer.
This covers the costs of temporarily using a rented vehicle when your business vehicle is damaged and out of service. In most cases, this unique coverage is included when your commercial auto insurance policy includes collision coverage.
Electronics and equipment coverage
Company vehicles often have additional equipment and electronics, such as GPS and refrigerators, to facilitate business operations. A commercial auto insurance policy covers these modifications in case of theft or damage during an accident.
Is Progressive Insurance Right for Your Business?
Progressive’s commercial auto insurance is not the company’s only selling point. Progressive has built a reputation for providing affordable coverage to high-risk motorists who may find it difficult to get similar rates (or any acceptance) from other companies. These motorists include drivers with DUIs, speeding tickets and other traffic violations that make up poor driving records.
Progressive has an overall rating of 8.6 based on research from our expert team, which is largely owed to the brand’s cheap auto insurance for certain profile drivers. Progressive’s usage-based insurance app Snapshot helps drivers lower their premiums by $156 per year, for instance. The company also provides discounts for those who pay in full, set up automatic payments, request online quotes and more.
Progressive also offers a tool on its website to help viewers figure out if it’s better to get a commercial auto policy or a personal policy for their business. To know more about the company, contact a local Progressive agent.
Other Recommendations for Auto Insurance
With numerous auto insurance carriers in the market, choosing the right one can be a challenging task. If Progressive is not the right choice for your commercial auto insurance needs, both GEICO and USAA are worth considering. You can use our comparison tool below to look at free auto insurance quotes from these two providers side by side.
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When it comes to insurance, the cost of premiums significantly impacts the choice of an insurance provider. GEICO, one of the leading insurance providers in the U.S., offers considerable discounts to offset high costs.
The company ranks highest in coverage options and offers discounts for multiple vehicles and policies. There are also huge discounts for good drivers (22%), emergency deployment (25%), military discounts (15%), membership discounts and others. For its discounts, competitive rates and commendable customer service, we ranked GEICO at 4.6 out of 5.0.
While providers like GEICO may offer military packages, USAA could be a better option for active military and veterans. As a company that is exclusively for veterans, military members and their families, it offers plenty of specialized deals.
USAA also offers competitive premiums and a range of discounts for defensive driving, safe and low-mileage drivers, families and others. Based on these factors, we gave USAA a rating of 4.6 out of 5.0.
What’s the difference between commercial auto insurance and personal auto insurance?
While commercial auto insurance and personal auto insurance overlap in several aspects, there are significant differences between them. Commercial policies often have high liability limits since business vehicles are exposed to more risks and provide coverage for vehicles not owned by the business, including employees’ personal cars when used for work.
How much is commercial auto insurance?
There is no fixed cost for commercial auto insurance. The cost of your policy depends on the vehicle type, how the vehicle is used and the driver’s record, among other factors.
How much commercial auto insurance do I need?
The minimum requirements for commercial auto insurance policies vary from state to state. This may include bodily injury coverage and property liability coverage. You can purchase the minimum coverage or include extras to receive higher claims on your policy coverage.
What does a commercial insurance policy cover?
Commercial insurance policies cover vehicles used as part of a business or corporation. Policies usually include liability coverage, collision and comprehensive insurance, and other specialized coverages like non-owners insurance and loan/lease gap coverage.
Our expert review team takes satisfaction in providing accurate and unbiased information. We identified the following rating categories based on consumer survey data and conducted extensive research to formulate rankings of the best car insurance providers.
Affordability: A variety of factors influence cost, so it can be difficult to compare quotes between providers. Our team considers auto insurance rate estimates generated by Quadrant Information Services and discount opportunities when giving this score.
Coverage: Because each consumer has unique needs, it’s essential that a car insurance company offers an array of coverage options. We take into account types of insurance available, maximum coverage limits, and add-on policies.
Industry Standing: Our team considers Better Business Bureau (BBB) ratings, financial strength, and years in business when giving this score.
Availability: Auto insurers with greater state availability and few eligibility requirements are more likely to meet consumer needs.
Customer Service: Reputable car insurance providers operate with a certain degree of care for consumers. We consider complaints filed with the National Association of Insurance Commissioners (NAIC), J.D. Power claims servicing scores, and customer feedback.
Online Experience: Insurers with easy-to-use websites and highly rated mobile apps scored best in this category.