Premiums for commercial auto insurance vary depending on several different factors. Commercial auto insurance provides coverage for vehicles owned or used by your business for work purposes. This means that certain facts about your business can affect how much you pay to protect your vehicles. 

Coverage Limits 

The higher amount of coverage you have, the more you will pay for commercial auto insurance. This doesn’t mean that you should skip out on coverage, however. If you have lower limits, you may have gaps in your policy. A full coverage commercial auto insurance policy may include: 

• Comprehensive Coverage: Comprehensive coverage provides compensation for damages to the commercial vehicle caused by fire, wind, hail, lightning, smoke, theft, vandalism and other incidents not including collision. 
• Collision Coverage: Collision coverage provides compensation for damages to the commercial vehicle caused by a collision with another vehicle or object. 
• Liability: Liability insurance covers bodily injury and property damage a driver may cause while operating the insured vehicle. 
• Medical Payments: Medical payments coverage provides compensation for medical bills the driver and their passengers may suffer after an accident.
• Uninsured/Underinsured Motorist: This insurance covers accidents involving another vehicle who is not carrying insurance. 

You can also add Hired and Non-Owned Auto, which covers vehicles borrowed or rented by the business. This may include employee vehicles, as well. 

Size of the Business 

As expected, larger businesses may pay more for commercial auto insurance. This is both because you may have more vehicles, but also because there are more employees who may be operating the vehicles. Also keep in mind that businesses with additional locations may pay different rates, as well. 

Employee Driving Records 

Even if employees aren’t specifically named on the policy, their driving records can still affect the cost of your insurance. The more employees you have operating vehicles, the more you may pay for commercial auto insurance. Their driving records matter, too, however. In fact, some insurers will not allow you to add employees with poor driving records to your policy. If these excluded drivers are allowed to operate the insured vehicle, they will not be covered in case of an accident. 

Value of the Vehicles 

Vehicles that are heavier generally cost more to insure, both because of the vehicle’s value and the liability related to heavier vehicles. This also applies to the higher requirements required by state laws for different vehicles.