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Pennsylvania Commercial Auto Insurance (QUOTES, COST & COVERAGE)

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.

Pennsylvania Commercial 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 РThe 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 РContinual auto insurance history can help get you a better rate.
Vehicle types РPurchase price, theft rate, cost of repairs, accident rate and safety tests weigh heavily in car insurance cost.
Vehicle use РA vehicle used to haul hazardous waste more of a risk than the van used to drive to a worksite.
Miles driven annually РThe less you drive, the less risk you have of being in an accident.
Business credit history РThe better credit you have, the lower your rates. Most insurers look at credit and weight it heavily.
Coverages РThe more coverage you choose with higher limits, the more it will cost you since the insurer is taking on additional risk.
Deductibles РThe 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 РTypically 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 РMarried people have been found to be less of a risk to insurers than singles, including divorced or widowed drivers.
Years of driving experience РInexperienced drivers pose more risk. That is why under 25 have some of the highest rates.
Driving record РDrivers with a clean driving record qualify for better rates and can be eligible for a safe driver discount.
Claims history РMore 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:

Financial responsibility (commonly known as PA auto insurance) is required on all vehicles operated or parked on Pennsylvania roadways. You must carry evidence of financial responsibility in your vehicle at all times and it must be provided as specified below when:

Requested by law enforcement.
Renewing vehicle registration.
The vehicle is involved in a traffic collision.

Insurance companies in Pennsylvania are required by law (Pennsylvania Vehicle Code (CVC) §16058) to electronically report private-use vehicle insurance information to the Department of Motor Vehicles (DMV). Electronic reporting of insurance information and programming changes that took effect in 2006, allow DMV to monitor insurance coverage and take appropriate actions through vehicle suspension as required by law. PA law enforcement and court personnel have electronic access to insurance status on DMV records.

What Are the Minimum Liability Insurance Requirements for Private Passenger Vehicles?

Pennsylvania Insurance Code §11580.1b says:

$15,000 for injury/death to one person.
$30,000 for injury/death to more than one person.
$5,000 for damage to property.

Liability insurance compensates a person other than the policy holder for personal injury or property damage. Comprehensive or collision insurance does not meet vehicle financial responsibility requirements.

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

Related articles:

Cargo Insurance For Household Goods Movers
Truckers General Liability Insurance
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.

The Pennsylvania Department of Insurance

The PA Dept. of Insurance is the regulatory agency behind the insurance rules for the state of Pennsylvania. If you want to understand these rules, then this is definitely the agency that you need to focus on. Let’s start with limits within the state.

Pennsylvania Minimum Insurance Limits
For auto insurance, Pennsylvania requires $15,000 per person and $30,000 per accident.
For life insurance, there are certain regulations in place to determine how someone is able to get or offer life insurance, but there are no limits listed.
For¬†commercial insurance, insurance agents may offer broker or casualty insurance as well as covered property insurance, covered causes of loss, specified perils and open perils along with a number of coverage forms like builder’s risk, legal liability, building ordinance, glass, peak season, inflation guard and peak element.
PA Insurance Regulations

As for regular insurance regulations there are a lot of things that Pennsylvania provides that you can look up. For example, there are deadlines for the insurer to pay the claim or deny it, deadlines for submitting paperwork to prove a loss for insurance reimbursement, specific information your insurance company is required to give you and regulations on what information you have to provide to your insurance company.

One of the Pennsylvania regulations calls for you to be treated by your insurance company in good faith. This means that your insurer must be considered of your needs and must communicate completely and honestly with you about your policy and everything that you need to know about it in order to make a good decision. In turn, you are legally obligated to be honest and cooperative with your insurance company when it comes to your claim.

You should also be aware that your insurance company is required to offer prompt, honest and complete communications. The company and all of its representatives must respond to your communications within 15 calendar days with a complete response based upon the facts that are known.

Finally, be aware that your insurance company is required to have a fair claims process. Unless it is specified in your policy, you do not have to use the forms that are provided to you by your insurance provider in order to make a claim. You can create a list of losses on your own if you need to. In addition, insurers are not able to ask for unreasonable proof of loss. If you provide photographic evidence or video of items that you lost, insurers are not able to ask you to provide additional information.

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