Commercial Auto Insurance for General Contractors

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General Contractors Commercial Auto Insurance

Contractor Commercial Auto Insurance

cheapest auto insurance quotes
Do I need Commercial Auto Insurance as a Contractor?

Are you a general contractor? Do you own or are planning to buy a work van/truck where you will carry tools and equipment and drive to clients homes/job sites? Do you have employees who use your vehicles for various work related tasks?

If this is the case, you will require a commercial auto insurance policy for your vehicle. If you take a closer look at your personal auto insurance policy and application, you will see commercial use of the vehicle is not included in your policy.

Should an accident happen while you are driving to a clients house or on the job, the insurance company may reject your claim as you have breached the contract. 

This is the last thing you would want as many claims cost in excess of $10,000! 

The good news: Commercial auto insurance policies in many cases are much cheaper than standard personal auto policies. 

Over the last few years, personal insurance rates have been increasing very quickly due to claims, vehicle repair costs and fraud while commercial rates have been more stable. 

How Can I get The Best Contractor Vehicle Insurance Rate?

Shopping for commercial auto insurance is very similar to personal auto insurance in many ways. Some of the factors that affect your premium include where you live, the type of vehicle you use (light or heavy vehicle) and your driving record.

Each Insurance company will have different rates based on their own individual statistics and claims ratios. The best way to look for a good rate is to compare pricing across all commercial auto insurers. 

This is where a good commercial insurance broker can help! As brokers, we deal with many commercial insurance companies and are able to shop around for the best rate while finding the correct coverage. Most commercial auto insurance policies can only be attained via an insurance broker, online carriers usually only deal with personal car insurance. 

At Ambroziak & Rao Insurance Brokers, we know the unique requirements of general contractors and can tailor your policy to your needs. A lot of your work is on the road raising your chances of an accident by a lot! Be sure to be properly covered when your in transit. 
Insurance Tips for General Contractors
Being a contractor is not an easy job. Many things can go wrong and you want to be prepared for the worst. Below are a few tips to decrease your insurance rate as well as being prepared for the worst case.

1. Bundle In addition to a commercial auto policy, you should consider bundling up with a CGL (Commercial General Liability) policy. Many companies offer discounts when you choose to combine the two policies.
 
2. Life & Health Insurance. As an independent contractor, you have no disability, critical illness or life insurance. It’s a good idea to have those covers incase your income ever abruptly stops.

How Are Contractors Auto Insurance Policies Rated?

Below are three important factors that affect a contractors commercial auto insurnace policy.

01

Address

Just like with personal auto insurance, your address will have an impact on your commercial insurance rate. High risk areas will be more costly. 

02

Usage

Commercial auto policies are rated based on vehicle usage. Luckily, contractors get great commercial auto insurance rates!

03

Vehicle

The vehicle will have an impact on your commercial auto insurance rates.  Generally the larger the commercial vehicle the more costly the rate. 

What is required by Law?

Contractor Commercial Auto Insurance Coverage

As a general contractor, your commercial auto insurance policy will still include the standard auto insurance coverages. You will have the option to add collision and comprehensive coverage as well which cover you if the accident was your fault.

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