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How much does commercial auto insurance cost?
The cost of commercial auto insurance varies between tech businesses, based on factors like how many company cars the business owns and how frequently it uses them.
Median commercial auto insurance costs for tech businesses
According to our data, tech companies pay a median of $201 per month, or $2,415 per year, for commercial auto insurance. The median better illustrates what you can expect to pay since the average values include high and low extremes.
Your company's level of risk and other factors significantly affect the cost of coverage. Among TechInsurance customers, 12% pay less than $1,500 per year for commercial auto insurance and 52% pay between $1,500 and $3,000 per year.
Policy limits affect the cost of coverage for tech businesses
Most technology companies purchase commercial auto insurance with a generic $1 million policy limit. Businesses with more company cars may pay a higher premium for a policy with a higher limit. This is due to the risk of a car accident rising with more cars on the road.
A policy with a higher limit costs more, but provides greater compensation in the event of an accident.
Tips for saving money on commercial auto insurance
Pay your annual premium up front. When you purchase a new policy, you can choose to pay your premium in either monthly or annual installments. The annual premium often costs less than paying month by month.
Manage your risks. The fewer commercial auto insurance claims your business makes, the less your insurance premiums cost. Your business can minimize potential claims by practicing common sense with company cars. An effective company car policy might include:
- Frequent car inspections and maintenance
- Keeping records of employees' driving history
- Avoiding texts or calls to employees on the road
- Mandatory drug and alcohol tests after an accident
Liability claims can be a threat to your tech business. If you’re accused of injuring someone, damaging property, or causing other harm it could easily turn into a costly lawsuit. That’s why it's important to have the right insurance protection in place to cover a range of potential liability risks.
Learn more about insurance costs for tech businesses
View our small business insurance cost overview or find out how much you can expect to pay for common types of business insurance.
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