Rating Factors for Commercial Auto Insurance

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rating factors for commercial auto insurance

Comparing the rating factors for commercial auto insurance to your personal auto policy is truly apples and oranges.   We are often asked why commercial auto insurance is so expensive, compared to a personal auto policy.  The answer, as with all things insurance, is a little complicated.  Commercial auto insurance takes into account many different factors to determine what premium is appropriate for the risk.

Some of the rating factors for commercial auto insurance include:

  • Radius of operations
  • GCWR/GVW of the vehicles
  • Vehicle usage such as delivery or service
  • Equipment and accessories attached to the vehicle
  • Value of the vehicles
  • Driver age
  • Driver history (tickets & accidents)
  • Prior loss history.

Some of these rating factors make a large difference in the premium, such as the radius of operation and GVW.   Surprisingly, vehicle value is usually a minor factor and affects only the physical damage rate.   Some commercial auto insurers use a flat rate for drivers over a certain age, often 25 years, and surcharge younger drivers.  Driver history may be a pass or fail factor, with no surcharge for minor moving violations.  Prior commercial auto insurance claims is also usually a pass or fail factor, although some insurance carriers may surcharge for certain claims.

In the last few years we have seen several commercial auto insurance carriers develop unique rating models that evaluate the business D&B score and, sometimes, the credit score of the business owner.  Progressive and Mercury, for example, use an individual credit score when pricing a commercial auto policy.  Hartford, Acuity, Nationwide and Liberty Mutual typically review the Dun & Bradstreet report before offering a quote.

Get the Best Price for Nevada Commercial Auto Insurance

At Safeguard Insurance, we offer Nevada commercial auto insurance with several A+ rated providers such as Progressive, Hartford, Travelers, Mercury, Nationwide, Acuity and BHHC.  We can offer you several quotes to compare with various limits of coverage and deductibles.   Whether you are a construction company with light trucks, a distributor with delivery vehicles or an over-the-road trucker with an 80k GVW tractor, we have the right commercial auto insurance products at the right price.

Contact Safeguard Insurance for a no-obligation quote on Nevada commercial auto insurance.

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