A Look at the Numbers What Determines the Commercial Auto Insurance Prices

If you have a business that deals with the transportation of people or goods from point X to point Y, you should be smart enough.

Many challenges are on the road. It’s just difficult to carry out all your operations as planned.

It’s apparent that you can’t control most of these challenges you will come across. So, the best option is to go for Ontario Commercial Insurance.

Maybe the problem is that you have never known how the rates are calculated. Perhaps, that’s even the reason why you have never opted for it.

While there are a lot of challenges, you will be surprised that you can control some of the factors used to determine your commercial auto insurance prices.

Below are the factors that are used to determine your commercial auto insurance prices:  

1. Type of Your Vehicle and Its Use

Do you use a single car to help you with your business around town? Or do you use a truck to distribute goods to your clients?

It’s important to note that your commercial car insurance will vary depending on the type of car you are using and how many vehicles you are using.

Now, carriers will use the type and number of the cars you are using to determine your rates after they have assessed the risks.

For example, if you use vehicles such as trucks, trailers and other massive vehicles, then your pricing will likely be high because such vehicles are likely to cause severe damage when they get involved in an accident.

Besides, your rates will also be determined depending on the purpose of the car you are using for your operations.

2. Drivers

It’s not about just hiring drivers to work for you. After all, who will allow a careless driver to take charge of his or her business? In short, your driver’s driving history will be used to determine your commercial auto insurance rates.

DMV.org reveals that it will be your duty to collect and provide the driving license for all your drivers who will be covered under the commercial auto insurance policy.

After that has been done, carriers will take time with the driving licenses you provided to assess the likelihood of risk so that they can determine your rates. If by any chance your driver’s driving history isn’t good, then you will have to pay more.

3. Location

It might not make sense, but the truth is that driving in a city and driving in a country road is much different.

The point here is that the place where you are driving will pose some risks. That’s why carriers will use your location to determine your commercial auto insurance rates.

For example, if you come from a rural area, there are fewer chances that you will get involved in a road accident because there is no traffic jam where different drivers are trying to maneuverer their way to reach their destinations as fast as possible.

So, if you are living in a city, you will likely pay more than someone driving or carrying his or her operations in rural areas.

Bottom Line

Maybe you didn’t know how your commercial auto insurance rates are determined, now you know. If that’s what was holding you back, now you should be set to acquire your commercial auto insurance.