Driving a vehicle is common for people in many professions. Depending on the type of job you are in, you may need to obtain a commercial auto insurance plan. While this is standard for all motorists that need to drive for their job, those that are perceived to be a higher insurance risk could face a more difficult time getting coverage and then pay even higher premiums. There is a lot that needs to be understand about commercial auto insurance for high risk drivers.
What We'll Cover
- What Classifies You As a High-Risk Driver?
- Who Is Considered The Highest Risk of All?
- What Happens If I am Considered a High Risk Driver?
- Most Affordable Commercial Auto Insurance Providers for Those Considered High-risk Drivers
- Next Insurance
- State Farm
- Auto-Owners Insurance
- Old Republic
- Commercial Car Insurance Rates for High-risk Drivers by State
- What Can I Do to Reduce My Commercial Auto Insurance Costs?
What Classifies You As a High-Risk Driver?
The term "high risk driver" can be somewhat vague and difficult to define. However, when it comes to commercial auto insurance, there are various characteristics that an insurance company would perceive to be riskier. Generally, those that have a poor driving record will be considered higher risk. If you have a history of moving violations, have been cited for driving under the influence, or have been involved in a number of auto accidents, you will be considered a higher risk driver. Other factors that can influence your perceived risk include the type of vehicle that you drive, how many miles you intend to drive each year, and your location.
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Who Is Considered The Highest Risk of All?
While insurance companies will categorize drivers based on a variety of factors, lack of experience is often considered the most significant risk of all. Teenagers and young adults that are behind the wheel will not have the same experience as someone who has been driving for decades. Further, they tend to be more reckless with their driving actions. If you are a younger driver and have a history of moving violations, you may fall into the highest risk
What Happens If I am Considered a High Risk Driver?
If you are considered a high risk driver, the insurance companies will take extra precautions when it comes to providing you with insurance coverage. In some situations, an insurance company may deny coverage entirely. However, in others, they may try to compensate and offset the higher insurance risks by charging higher premiums, offering reduced levels of coverage, or requiring you to pay a higher deductible.
Even if you are considered a high risk driver, there are still many companies that could be willing to offer you a quality policy. Some of the best companies to work with when looking for commercial auto insurance for high risk drivers are as follows:
Most Affordable Commercial Auto Insurance Providers for Those Considered High-risk Drivers
Progressive Insurance continues to be a top option for high-risk commercial drivers. They offer policies that are curtailed to meet the needs of commercial drivers and have different plans based on your situation. They are known for being flexible in their underwriting to help come up with a quality plan that meets your needs.
The Next Insurance company is one of the newest and youngest insurance providers as they were not established until 2015. However, they have developed a niche in the field and have a reputation for coming up with creative insurance solutions for small businesses. This includes helping businesses and independent contractors get quality commercial auto plans, even if they are considered at higher risk.
This company is one of the top auto insurance providers in the country and they have a division that specializes in giving plans to commercial drivers. This includes offering specific commercial auto plans used by rideshare services, limos, and other services that are designed to help transport people.
AllState has continued to be a leading provider of various consumer and commercial insurance products. They offer a variety of commercial auto insurance plan options for higher risk drivers that could be used by someone to get into a quality policy. The size and reputation of the company is an advantage, but they may not be as competitive when it comes to price in some situations.
The State Farm team is known for offering many types of commercial insurance plans. Their commercial auto policies are available for a variety of job functions including transportation, shipping, and logistics. They are knowledgeable about the risk that commercial auto owners face and can give the support needed to ensure you get into an ideal policy that will meet your needs.
While this company may not be as recognizable as others, Auto-Owners Insurance is a great commercial auto insurance provider. The company has a very high AM Best rating, which will give you comfort that they have the financial resources to handle claims. They also have a low complaint rating, which is evidence of strong customer service.
The Old Republic insurance company has a solid AM Best rating and a reputation for top customer support. They will offer various solutions that you can take advantage of to properly insure your commercial vehicles. This includes plans for truck operators and rideshare contractors.
The team with Biberk has been providing commercial for more than 75 years. They are a leading provider of commercial auto insurance for high-risk drivers. BiBerk has a good reputation for service and reliability and can offer flexible auto insurance policies in markets all over the country.
The Nationwide insurance company is a popular provider of all auto insurance plans. This includes commercial plans designed for high-risk drivers. They will help you build an ideal plan based on your type of business and coverage needs. They are a large company with a reliable customer service team.
Commercial Car Insurance Rates for High-risk Drivers by State
The price you pay for commercial auto insurance if you are a high risk driver will vary based on your state and location. The cost in each state varies based on various risks including higher levels of accidents, theft, and state regulations. The typical high-risk auto insurance rates for drivers in some target states is as follows:
|California||In California, high-risk commercial auto insurance can cost up to $1,800 per year.|
|Texas||Texas commercial auto rates for high-risk drivers can range up to $2,500 per year.|
|Florida||Florida drivers can expect to spend more for commercial auto with rates ranging up to $3,000 per year.|
|New York||New York high risk drivers will spend between $2,500 and $3,500 per year for commercial auto coverage.|
|Illinois||Illinois has an average Commercial Auto Insurance cost for high-risk drivers of $2,000.|
|Kentucky||Average commercial Auto Insurance Cost for high-risk drivers in Kentucky is around $1,800.|
|Minnesota||Minnesota has an average Commercial Auto Insurance cost for high-risk drivers of $1,900.|
|Georgia||Georgia drivers will spend around $2,000 per year for commercial auto coverage if they are considered high risk.|
What Can I Do to Reduce My Commercial Auto Insurance Costs?
If you are a high-risk driver, you can quickly find that the costs for coverage add up quickly. Fortunately, there are ways that you can reduce your total costs.
One of the most important tips to follow when looking for any type of insurance plan is to shop around. Just like any other type of insurance, there are a lot of companies willing to offer high-risk commercial auto insurance. As no two companies have the same underwriting process, you could get a lower rate from one company than another. You can always get quotes from multiple companies and compare rates to get the best deal possible.
Evaluate Insurance Needs
It would also be a good idea to carefully evaluate your insurance needs. No two commercial drivers are going to have the same needs when it comes to coverage. As you are shopping for coverage, you should consider the type of coverage, the insurance limits, your deductible, and other factors. By reducing your coverage or accepting a higher deductible, it can reduce the risk to the insurance provider, which will result in lower premiums.
Check for Coverage Frequently
If you go for a period of time without any accidents or incidents, it will improve your driving history from the insurance company's perspective. Generally, insurance policies last for 6 months but can be canceled at any point by the insured. By checking rates every few months, you may find that you are less of a risk and could qualify for standard commercial auto plans that come with lower rates.
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