Reader’s Question:

Why is a commercial vehicle insurance quote higher than typical vehicle insurance quotes?

Henry

New York, NY

The main difference between a commercial vehicle and a regular vehicle that raises a commercial vehicle insurance quote is RISK. A commercial vehicle insurance quote is higher than typical vehicle insurance because there is more risk involved in a commercial vehicle. A commercial vehicle is used for business operations, usually for goods delivery or personnel transport, so it is often on the road and possibly used by several drivers. Such being the case, a commercial vehicle is potentially more likely to get into accidents. Since they may carry valuable products, they may also be more likely targets of theft. A regular personal vehicle, on the other hand, is relatively used less often; usually simply to drive to and from work. So a regular personal vehicle carries less potential risk.

Another reason why a commercial vehicle insurance quote tends to be higher is because this type of insurance is usually designed to cover a number of cars. Unless it’s a really small home-based business, most car insurance companies expect a fleet of at least three cars that need coverage.

When considering the level of coverage for commercial vehicle insurance, it is often advised that business owners take into account possible lawsuits against their business that may result if any of their company vehicles cause an accident. This factor also raises a commercial vehicle insurance quote.