Get Pennsylvania commercial auto insurance quotes, cost & coverage fast. PA business auto helps pay for damaged vehicles, property, bodily injury and medical expenses if you or an employee is found at fault for an accident.
PA Business Auto Insurance
It's pretty obvious that a company that has a fleet of vehicles and uses them to transport goods or perform services should have Pennsylvania commercial auto insurance. However, if you own a small company or are a sole proprietor and don't have commercial drivers, it can be hard to determine if this type of insurance is right for you. Your personal auto insurance may not cover you or any of your employees in the event of an accident, so it's essential to find out immediately if Pennsylvania commercial auto insurance is necessary.
Business auto insurance is a policy that covers any PA vehicles that are used for your business, as well as the people who drive those vehicles. It provides financial protection for you and any employees that drive for reasons related to your business if an accident or some other type of incident occurs.
While business vehicle insurance has some similarities to personal auto policies, there are notable differences in eligibility, coverages, exclusions, definitions & limits. Commercial car insurance is needed for certain type of vehicles (think heavy vehicles like tractors, dump trucks etc.). This can include cars used for business purposes as well as box trucks, food trucks, service utility trucks, etc.
Does My Business Need Pennsylvania Commercial Auto Insurance?
The best way to determine whether or not you need Pennsylvania commercial car insurance is to speak to an insurance agent or someone else who has ample knowledge of the topic. However, if the business you operate uses vehicles on a regular basis, it's a pretty safe bet that you are going to need it, no matter what size your business is.
Some professions that require Pennsylvania commercial auto insurance include the following:
- Home heating oil companies
- Delivery companies (food, packages, etc.)
- Livery drivers
- Tow truck operators
If your profession isn't listed above, don't assume that you don't need PA business auto insurance. As mentioned, if your business uses vehicles, there's a pretty good chance that you are going to need it. Also you might be contractually required to have it of a customer requires it as part of a deal.
What Does Pennsylvania Commercial Auto Insurance Cover?
You might already have some familiarity with some of the different types of business car insurance since many polices share names with personal vehicle insurance policies. Some of the most commonly used coverages in policies include:
- Collision. This covers any damages that a vehicle may receive if it is involved in an accident.
- Comprehensive. This policy covers any losses that occur if your vehicle becomes damaged in an accident that does not involve a collision, such as fire, flooding, hail, damage from a fallen tree, theft, or vandalism.
- Liability. This policy covers bodily injuries that others may sustain as a result of a vehicle that is used for your company. It also covers any expenses to replace or repair someone else's property should a business vehicle cause an accident. It is the most commonly needed - and required - Pennsylvania commercial auto insurance coverage.
- Uninsured / Underinsured Motorist. With this coverage, any injuries that are sustained or damages to your vehicle will be covered if an accident occurs with someone who does not have insurance or who does not have enough coverage to pay for the damages or injuries.
Whatever policy you choose, you should consider extending it so that it will cover any employees who may drive in order to complete tasks that are related to your PA business. For example, if you own a restaurant that delivers food, it's a wise idea to have your delivery drivers covered.
What Pennsylvania Commercial Auto Insurance Doesn't Cover
Know as exclusions, which elimiate risks for the insurer, Pennsylvania commercial auto insurance typically does not cover:
- Intentionally damage caused by the business owner or employees.
- Workers compensation.
- Employer's liability.
- Contractual liability.
- Amounts beyond the policy limits and auto value.
How Much Pennsylvania Commercial Auto Insurance Coverage Do I Need?
It can be tricky to figure out how much vehicle insurance you will need for your business. An agent that specializes in this type of insurance will be able to help you determine an appropriate amount for your specific needs. It's important to be aware that at the bare minimum, you have to make sure that you have enough coverage to comply with any insurance requirements that are set forth by Pennsylvania.
The following factors can be used to help you figure out how much coverage your business will need:
- Your business' size
- How much your assets are worth
- The amount of vehicles your company uses
- The number of people who drive for your business
- How much you will be able to afford to pay out of pocket in the event that an accident does occur
How Much Does Pennsylvania Commercial Auto Insurance Cost?
How much does Pennsylvania commercial auto insurance cost? The average price of business vehicle insurance varied widely based on certain factors. The premiums vary depending on the company and their underwriting rules, and it depends on the coverages and deductible selected. Following are some of the main factors that go into the price of a policy based on the business:
- Geographical location - The more dangerous your location is the higher premiums you will pay as there is a higher probability for claims. If you live in a highly populated urban area accidents and insurance claims happen more often and rate are higher.
- Previous insurance coverage - Continual auto insurance history can help get you a better rate.
- Vehicle types - Purchase price, theft rate, cost of repairs, accident rate and safety tests weigh heavily in car insurance cost.
- Vehicle use - A vehicle used to haul hazardous waste more of a risk than the van used to drive to a worksite.
- Miles driven annually - The less you drive, the less risk you have of being in an accident.
- Business credit history - The better credit you have, the lower your rates. Most insurers look at credit and weight it heavily.
- Coverages - The more coverage you choose with higher limits, the more it will cost you since the insurer is taking on additional risk.
- Deductibles - The deductible is your out of pocket cost before your policy kick in. Lower deductible = higher premium, and higher deductible = lower premium.
And the following factors have an effect on the price based on the acutal drivers:
- Age - Typically drivers under 25 pay more because statistically shown to be inexperienced behind the wheel, easily distracted and to crash more often. They are on of the riskiest category of drivers to insure.
- Gender - Data shows males are more likely to crash, hence men's premiums are higher.
- Marital status - Married people have been found to be less of a risk to insurers than singles, including divorced or widowed drivers.
- Years of driving experience - Inexperienced drivers pose more risk. That is why under 25 have some of the highest rates.
- Driving record - Drivers with a clean driving record qualify for better rates and can be eligible for a safe driver discount.
- Claims history - More claims = more premium. Insurers actually count frequency (how many claims in a time frame) more than severity (how large the claim was).
What Are Pennsylvania's Financial Responsibility Requirements?
According to the PA Department Of Motor Vehicles:
Pennsylvania law requires all Pennsylvania motor vehicle owners to maintain vehicle liability insurance (financial responsibility) on a currently registered vehicle. Vehicle liability insurance covers the property damage or injuries you may cause others in a crash.
All motor vehicles subject to registration such as cars, vans, motorcycles, recreational vehicles, trucks and buses must have liability insurance. You are in compliance with the law if you have liability insurance in the following amounts:
- $15,000 for injury or death of one person in an accident
- $30,000 for injury or death of more than one person in an accident
- $5,000 for damage to property of another person
Your insurance company sends you an insurance identification (ID) card valid for only the period for which coverage has been paid. Always carry your insurance ID card in your vehicle. Failure to maintain liability insurance on a registered vehicle may result in a three-month suspension of your vehicle registration privilege.
Further Reading On Business Auto Insurance
Read through helpful commercial auto insurance for small business to help you better understand polices you own or are buying.
- Business Auto Coverage Form
- Bobtail And Deadhead Coverage
- Bobtail And Physical Damage Insurance
- Bobtail Insurance vs Non-Trucking Liability
- Commercial Auto Insurance Hired And Non-Owned
- Commercial Auto Insurance vs Personal Cost
PA Business Auto Insurance Quotes
Request a Pennsylvania Commercial Auto Insurance quote in Allentown, Allison Park, Altoona, Baldwin, Bensalem, Bethel Park, Bethlehem, Bloomsburg, Carlisle, Chambersburg, Chester, Drexel Hill, Easton, Erie, Fullerton, Greensburg, Hanover, Harrisburg, Hazleton, Hermitage, Hershey, Horsham, Indiana, Johnstown, King of Prussia, Lancaster, Lansdale, Lebanon, Levittown, McKeesport, Monroeville, Murrysville, New Castle, Norristown, Philadelphia, Phoenixville, Pittsburgh, Pottstown, Pottsville, Reading, Scranton, State College, Upper Darby, West Chester, West Mifflin, Wilkes-Barre, Wilkinsburg, Williamsport, Willow Grove, York and all other cities in PA.
Pennsylvania Insurance Regulations
There are some regulations when it comes to Pennsylvania insurance that you should be aware of. We will be looking closely at both personal and commercial insurance within PA to find out what the regulations and limits are, so that whether you own a business or simply drive a car, you are able to get the insurance that is required by law. Understanding what the law requires the first step to making sure that you are compliant. Let's take a close look at these types of insurance.
PA Commercial Insurance
First, let's discuss business insurance. There are lots of different types of business insurance that you can get, but the most common one out there is what is called commercial liability or general liability insurance. This type of insurance protects you in case you are sued by someone who comes on your property and is injured or has their property damaged by something that happens on your premises. This may be something as simple as slipping on a wet floor or it might be a parking lot mishap the damages the vehicles there. However, this is not a mandatory type of insurance required by Pennsylvania law.
There are two types of insurance that are required in Pennsylvania however. These are pretty standard across most states. The first is Worker's Compensation insurance which is sort of like health insurance for anyone who is injured on the job. In addition, Pennsylvania requires that commercial vehicles that are actively being used in a business carry commercial auto insurance.
Pennsylvania Personal Insurance
You also need to know what the regulations are for personal insurance. The first type of insurance we will cover is auto insurance. In Pennsylvania, you are required to carry liability insurance for bodily injury of $15,000 per person and $30,000 per accident. In addition, property damage liability coverage is required at an amount of $5000. You are also required to carry uninsured motorist coverage at $15,000 per person and $30,000 per accident as well as underinsurance motorist coverage at $15,000 per person and $30,000 per accident. Finally, Pennsylvania requires first party benefits medical payments coverage of $5000. This is a great deal more than is required in most states.
There also some life insurance regulations that you will find under Title 40 of the state statutes. A free look period of 10 days is required for life insurance, there is a grace period on payments of 30 days and there is a guaranteed benefits and cash value law as well.
If you are looking for state specific Commercial Auto Insurance quotes, costs and information: California Commercial Auto Insurance, Colorado Commercial Auto Insurance, Delaware Commercial Auto Insurance,Florida Commercial Auto Insurance, Illinois Commercial Auto Insurance, Kentucky Commercial Auto Insurance, New Jersey Commercial Auto Insurance, New York Commercial Auto Insurance, Oregon Commercial Auto Insurance, Pennsylvania Commercial Auto Insurance, Texas Commercial Auto Insurance, Washington Commercial Auto Insurance.