That cause and effect relationship is easy to understand.

Why is commercial auto insurance more expensive. As a general rule using your car for business in the ways suggested above means that you will almost certainly rack up a significantly higher mileage than you would for personal use. Confused commercial van and vehicle insurance. Ad When It Comes to Auto Insurance We Have Plenty of Options to Choose from.

Ad Come Direct To Direct Line For A Car Insurance Quote You Cant Get Anywhere Else. If you have to cover many miles the insurer will see you as having a greater risk of an accident and so charge you a higher premium for example. Unfortunately commercial auto insurance is more expensive than personal auto insurance.

Insurance companies take this into account when they calculate commercial insurance rates. Confused commercial van and vehicle insurance. Personal cost would be driving without an adequate insurance policy and relying on your own finances to cover your damage.

Relying on commercial auto insurance vs personal cost alone is not recommended. Ad Keep your business on the road. In fact in many jurisdictions it is actually illegal.

As such the liability limits need to go up which puts you at an increased level of coverage. Smaller vehicles with smaller engines are statistically less likely to be involved in a car accident which means that insurance for these cars is often significantly cheaper than the equivalent level of cover for larger cars with more powerful engines. How far you and your employees drive impacts your commercial auto or commercial truck insurance costs.

There are many reasons for this including the inclusion of multiple vehicles that are sometimes for specialty uses the need for multiple and changing drivers in these vehicles and the need to fully cover liability risks. By default commercial insurance is more expensive because the insurance provider has to factor in more risks and cover a higher number of claim opportunities. This is the case because the liability risks are different when a car is out on the road for business purposes.