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A commercial auto insurance policy in Florida can help protect your company in various ways. From being a financial safety net in the event of an accident, vandalism, or natural disaster to helping you get back on your feet with a rental vehicle, a commercial auto policy ensures that your business can continue to function as normal, regardless of what life throws your way.
Today we are going to discuss in detail what commercial auto insurance is and the magnitude of benefits that come with insuring your company’s vehicles. This way, you can make an informed decision about whether or not this type of auto insurance is right for you and your business.
When you operate a vehicle for business purposes, your insurance agency has the right to reject your claim even if you have a personal auto insurance policy, as most insurance companies require you to file that you are using your vehicle for business use. This is why protecting your corporate vehicles with a commercial auto insurance policy is crucial.
In a commercial auto insurance plan, you may be covered by the following:
The benefits of commercial auto insurance are numerous for businesses. For starters, it protects against significant financial losses from accidents involving business vehicles. These losses include repair or replacement costs, medical expenses, and legal fees.
Getting a commercial auto insurance policy for your corporate vehicles will also ensure that you are maintaining the minimum requirements for your state laws around insurance (Later on in this article we will discuss the legal requirements behind commercial auto insurance and the state of Florida). With that said, if a business owner utilizes a vehicle for their company but fails to get the proper insurance, they may be liable for fines and consequences from the state government based on their location and the laws where they reside.
Furthermore, a company auto policy can provide peace of mind for business owners and their employees, since it can be easy to become stressed out and disrupted by accidents involving company vehicles. With commercial auto insurance, a business owner can concentrate on running their company instead of worrying about unexpected losses, even in the event of an accident.
The short answer is yes, commercial auto insurance is required in Florida for companies’ vehicles. All states require commercial vehicles to meet the minimum bodily-injury insurance that personal vehicles are required to. However, some states require much more coverage than the standard for personal vehicles, which can become quite costly for business owners. The good news is that companies can get a bit of a break on premiums in Florida due to the state’s lower insurance minimums.
Here is a breakdown of the Florida minimums according to BravoPolicy.com
For individual drivers, the minimum coverage required is:
A taxi must carry higher coverage limits of:
The minimums for commercial trucking insurance are:
The vehicles owned by your business, whether they are one vehicle or a fleet, need to be protected by commercial auto insurance. The average cost of a company auto insurance policy will vary based on your needs, such as how many vehicles you are insuring, the types of vehicles, and how much coverage you opt for (partial or full coverage).
Since the premium cost is based on your specific needs and circumstances, it is challenging to pinpoint the exact cost of auto insurance for company vehicles. However, we have a good idea as to what the average plan will cost in the state of Florida.
Bravo Policy states that after conducting a few studies, based on the typical needs of business owners and various insurance companies, the average commercial auto insurance policy in Florida costs about $2,565 and $3,370 per year. On the other hand, Insureon estimated that commercial auto insurance costs $142 a month or $1,704 a year on average. But, again, this is just the average cost, meaning that your premium could be higher or lower based on your specifics.
As we briefly mentioned above and with a personal auto insurance policy, several factors can affect your premium when it comes to commercial auto insurance. We have created a list of a few examples and explanations on why these factors will affect your overall premium costs:
It is important to assess your business needs before choosing a policy for your company’s vehicles. Consider your vehicles’ type, usage, and risk level, as well as their use and maintenance. You will also want to take into account HOW much coverage you are looking for. Do you want collision and comprehensive too? What about your deductible, how much can you afford to pay out of pocket? By completing this evaluation, you will be able to determine the type of coverage you require and how much insurance you can afford.
Once you have a good understanding of your needs, it’s essential to compare policies from different insurance providers to ensure that you are getting the best value for your money.
If you are looking to save some money on your insurance plan (who isn’t?) you should look for any available discounts that could help lower your premium. You can do this by talking to an expert insurance agent, as they can help steer you in the right direction of the best rates and how you can save more on your premium.
Commercial auto insurance is an essential investment for businesses that use vehicles for their operations, as it offers protection against financial losses, ensures compliance with legal requirements, improves risk management, and provides peace of mind to business owners and employees. If you are unsure about what type of coverage you need or would like some guidance in making the final decision, reaching out to a professional agent can be dramatically helpful.
Are you looking for a reliable provider of auto insurance for your company vehicles in Florida? Our team at Del Toro Insurance is a great option to consider. We offer a range of policies that can be tailored to meet the specific needs of your business. With a reputation for providing exceptional customer service and competitive pricing, Del Toro Insurance can help you get the protection you need to care for your business and its vehicles.
Contact our agents today to get a quote and learn more about our commercial auto insurance options. We promise to steer you in the right direction!
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