Some businesses, such as logistics, construction, delivery, or mobile service providers, require commercial vehicles for seamless operations. For your vehicles, you need indispensable commercial auto insurance Minnesota to cushion yourself from unpredictable accidents.
Commercial auto insurance will cover all bills and expenses if your company's vehicle gets into an accident. Any vehicle used for business purposes must have this insurance. This article will comprehensively discuss what you should know about commercial auto insurance, coverage limits, costs, add-ons, components, and leading companies you can purchase from.
If your automobile is involved in a collision, commercial auto insurance Minnesota will compensate all injuries or property damage expenses. It is an indispensable policy that cushions your firm from incurring severe financial repercussions after an accident.
The policy will cover you if you are the at-fault driver in an accident. It will also cover if the other motorist (who is at fault) does not have insurance coverage. All vehicles you use for business must have a commercial auto policy, whether you have one truck, tractor-trailer, or a fleet of business vehicles.
Minnesota is known for traffic congestion, which makes it a hot spot for automobile accidents. This area also tends to experience snowfall or low visibility in some months, increasing the risk of commercial vehicle collisions and other types of accidents. In 2019, through the Department of Public Safety, Minnesota reported 364 deaths linked to crash accidents. In 2020, the number rose to 394 total deaths, with motorists being 256.
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Any business operating in this state must have a specific minimum amount of insurance coverage. Here are the fundamental commercial auto insurance requirements in Minnesota:
Liability coverage–This coverage is compulsory and helps to protect your company against claims of property damage or bodily injury that your vehicles may have caused during an accident. It would be best if you have af bodily injury liability protection of $60,000 per accident and $10,000 in liability coverage for property damage per incident
Uninsured/underinsured coverage–All businesses should have a limit of $25,000 for each person and $50,000 for each accident. Although this is necessary coverage, you can reject it in writing.
Personal injury protection (PIP)–You must have a PIP coverage of $40,000 in Minnesota. It will pay for medical costs after an accident involving your commercial vehicles. Ideally, it will provide coverage regardless of who is the driver at fault.
You can include multiple components in your commercial auto insurance to ensure it is suitable for your unique risks. Here are some essential coverage options that will ensure your business, drivers, employees, and vehicles are fully protected:
Liability coverage–This is mandatory coverage and will pay for property damage or bodily injuries that may result from accidents your commercial vehicles caused
Uninsured/underinsured coverage–This will insure your business against any damages or injuries involving your business car if the motorist who caused the accident does not have sufficient cover to pay for the damages
Medical payments coverage–Will settle all medical costs of all occupants of your commercial vehicles without considering who is at fault in the accident
Collision coverage–Covers replacement or repair costs if your business car is damaged after colliding with another vehicle or object and does not necessarily consider who is at fault
Comprehensive coverage–Covers all damages due to fire, natural disasters, vandalism or theft of your company vehicles. However, this coverage excludes all collision events
Bobtail coverage–Ideal for businesses that use tractors without attaching a trailer. It will cover the vehicle even when you are not using it for work-related activities
Towing and labor coverage–This coverage will pay for all roadside assistance costs in case your business-owned vehicle breaks down on the road or gets into an accident
Loading and unloading coverage–Will cover items and equipment in transit or when loading or unloading. The policy will compensate for the repair or replacement costs if such items are damaged
Your insurance company will discuss incidents your commercial auto insurance policy will not cover. Here are some typical incidents not covered:
All intentional acts caused by you, your driver, or your employee are typically not covered. For instance, you may intentionally use your commercial vehicle to cause damage or harm; in such a case, your insurance will not chip, and you must pay for the financial consequences.
Commercial auto insurance is strictly used for accidents or damages when performing business activities. If an accident occurs when you are running a personal errand, this incident will not be covered.
An accident can occur due to overloading or carrying goods beyond your car's capacity. Some providers may choose to limit or deny your insurance coverage.
If an accident occurs while your business vehicle is driven by a driver not permitted or authorized, this insurance coverage might be denied. You must always ensure that your business vehicles are operated by permitted drivers.
In addition to the primary coverage offered by your commercial auto insurance in Minnesota, you can include extra coverage or endorsements to achieve adequate coverage for your business. Here are some add-ons that you can include:
If you use trailers owned by third parties through a trailer interchange agreement, this add-on will offer protection against all damage to those trailers while operating them.
Hired/non-owned auto liability coverage covers the medical expenses or property damage of third parties who got involved in an accident caused by an employee’s vehicle or a vehicle you hired.
This add-on increases liability limits and offers extra protection in case of expensive lawsuits or severe accidents. It comes in handy to protect your assets and minimize the risks of financial losses.
This coverage will assist your company in recovering replacement or repair costs for depreciated components of your commercial vehicle. Without considering depreciation, it will guarantee you recover the entire cost of the vehicle's parts.
If you operate a courier or moving business, you must protect clients' goods from damage, theft, or loss. This policy is fundamental if you transport high-value goods for your clients.
When your business vehicle is involved in an accident or stolen, you can rent another one while you wait for repair or replacement. Rental reimbursement coverage will compensate for the costs of acquiring a rental vehicle.
If your business vehicle cannot run due to a covered incident, this add-on will pay any lost revenue or incurred costs. This is especially beneficial for courier companies, who can suffer losses if an accident involving one of their vehicles occurs.
Consumables are specialized items like screws, brake pads, or nuts in your car. You require consumables coverage because a typical insurance policy might not cover these components. This add-on is crucial for high-value vehicles, where replacing consumables can be expensive.
Commercial auto insurance in Minnesota is $29 per month or $348 per year for a $1 million auto liability coverage. Here’s a table showing the cost of a $1 million auto liability coverage of commercial auto insurance from the best companies:
|Cost per Month||Cost per Year||Best for|
|NEXT||$13||$156||Best overall; Fast commercial auto insurance|
|CoverWallet||$18||$216||Comparing commercial auto insurance quotes online|
|The Hartford||$15||$180||Commercial auto insurance for high-risk businesses|
|Tivly||$21||$252||Comparing commercial auto insurance quotes over the phone|
|Thimble||$25||$300||Short-term coverage for project-based assignments|
|Hiscox||$27||$324||Commercial auto insurance global coverage|
Here are some factors that affect the cost of commercial auto insurance in Minnesota:
Some businesses have a higher risk profile compared to others. A construction company transporting equipment and materials is exposed to more risks than a mail delivery company. In such a case, construction firms will likely pay higher insurance premiums.
The type of vehicle you use for your business can also affect insurance costs. For instance, heavy trucks will attract higher premiums than small business vans.
An insurance company must check the driving history of all your vehicles. Drivers who have a history of violations or accidents will lead to an increase in the insurance rate.
The distance you travel daily or monthly can also affect commercial auto insurance costs. Vehicles that only operate local quotes are considered low risk compared to vehicles that travel regional routes.
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Consider working with these companies. Read some of the reviews below to know their pros, cons, and average rate for a $1 million auto liability coverage.
Issues an online proof of insurance instantly
Fastest commercial auto insurance
Great customer service and reputation
Outstanding value for money
Get a 10% discount if you buy two or more policies
Couldn't find any
NEXT operates entirely online to offer various businesses the needed coverage. Once you log in to their website, you can request online quotes, typically processed within minutes. This company has also hired agents ready to assist clients around the clock. NEXT offers policies with packages tailored for different industries, and this quality makes it ideal for small businesses. Also, it is unique as it allows users to access and share their insurance certificates online.
Best for: Best overall; Fast commercial auto insurance
Average cost: $13 per month
Our rating: 10/10
The commercial auto insurance application process is straightforward
Get comprehensive coverage within minutes
Unique benefits for all AARP members
Has an online quotation tool but you may need to speak to an agent
The Hartford has been offering the best commercial auto insurance deals for businesses. They are proactive in responding to the dynamic needs of businesses. Have a customer team always ready to assist you in purchasing and managing a policy effectively. Also, it partners with AARP and the partnership allows Hartford to provide the AARP members additional perks not available in other insurance companies. The Hartford’s website is also educative, and you can learn from its resource about insurance.
Best for: Commercial auto insurance for high-risk businesses
Average cost: $15 per month
Our rating: 10/10
You can easily compare commercial auto insurance quotes from many companies.
Zero fee cancellation is applicable
Easy-to-use online platform
Have friendly insurance rates
They are not an insurance carrier but a broker selling third-party insurance products
CoverWallet is a leading insurance broker in Minnesota. This company has joined forces with world-class providers to offer you the best deals. They have an experienced team who will connect you to a policy that best fits your needs. CoverWallet is ideal for comparison shopping and it can match your business with insurance providers offering more than 30 insurance policies. Also, it has an easy to use and intuitive platform.
Best for: Comparing commercial auto insurance quotes online
Average cost: $18 per month
Our rating: 10/10
An insurance marketplace where you can get amazing deals
Works with many providers (more than 200) to offer the best deals
Their online platform is user-friendly
You need to call to compare quotes
Tivly is a marketplace for insurance products; they have invested in a customer profile interface. This interface makes it possible to match you with the best provider. This company is famous for offering low-cost insurance policies. However, they don't offer insurance quotes on their virtual platform; you must discuss with a representative to get quotes via phone.
Best for: Comparing commercial auto insurance quotes over the phone
Average cost: $21 per month
Our rating: 9/10
Short-term insurance coverage for businesses
Offers insurance quotes on their virtual platform
Insurance products are straightforward to purchase
You can’t get assistance from their customer service team on call
Thimble offers many insurance products for all types of businesses. They have an online platform where you can select the insurance policy you want for your business and get coverage instantly. If you want commercial auto insurance, Thimble does not offer this policy directly and will advise you to seek coverage from Tivly.
Best for: Short-term coverage for project-based assignments
Average cost: $25 per month
Our rating: 9/10
Global coverage if you wish to extend to international territories
Enjoy a refund policy
Offers discounts on their commercial auto insurance policies
It does not offer coverage in some states, such as Alaska
Hiscox is a well-established provider that sells insurance products to many cities in the USA. They allow you to select your desired coverage limit and add-ons depending on the needs of your business. When you apply for their policies, you don't have to keep renewing them, as they have an automatic renewal strategy.
Best for: Commercial auto insurance global coverage
Average cost: $27 per month
Our rating: 9/10
This place is an absolute joke of a company and should be ashamed of the way they conduct business. I was hurt on the job at the end of July and it took them just shy of 7 weeks to issue out a paycheck to me. Yes the amount was back dated but still. Not many have the luxury of not receiving a paycheck for almost 2 months. To top it all off, the original adjuster marked me down for the wrong state which caused a problem from the get go, I've had 3 different adjusters now since each one can't seem to figure out the simplicity of my claim. All my paperwork which includes, my job, house, and drs visits all are from the same state and city but yet some how I have been filed under a completely different state 1500 miles away. They do not answer your phone calls or emails no matter how many you leave. I've had to escalate my frustrations to the supervisors of each of these individuals in order to even get some kind of response. I've had more communication and information given to me about my claim from the customer service representatives then the actual adjusters.......... please tell me how that works?! A serious overhaul needs to happen here in order to serve your clients the way they deserve to be taken care of. 10/10 do not recommend this company to a single soul on earth
I have never had the displeasure of working with a more incompetent and disrespectful person in my life. I’m an injured worker and the adjuster that was assigned to my case was named Carrie Furgeson. In the past 6 weeks that I’ve been injured and out of work I have only been able to get ahold of her twice, not for lack of trying. I have left countless voicemails, countless emails, and she ignores them all. When I am finally able to get ahold of her I’m greeted with terrible customer service. She is rude, she talks over me and I’m hardly able to get a word in edgewise. She spelled my name wrong on my documents even after I spelled it for her properly countless times, this caused a whole new issue with my bank. I have bill collectors from the hospital calling me demanding payment and Carrie Furgeson won’t do a single thing to help, or to get them paid. All of my documentation is in Colorado, my job is in Colorado, my address is in Colorado, all my Dr offices and appointments have been in Colorado and Carrie still managed to hold my claim because she wasn’t sure what state she needed to file it under. It’s been 6 weeks since my Injury and my company still hasn’t received the wage paperwork to fill out so they can get me my correct wages. When she’s not ignoring me she’s answering my questions with “I don’t know” well I don’t know how she got this job, because apparently she doesn’t know anything about it. She is a disgusting morose individual inside and out and I genuinely wish her the worst in all of her future endeavors. I highly recommend you don’t use this company. Please if you are a business owner and your looking into this company please don’t use them. I’m sure they have the cheapest payment and that’s why companies use them in the first place, but you will be doing your employees a grave disservice by forcing them to venture into this absolute dumpster fire of a company. I would rate 0/5 if possible but 1 was the lowest I was allowed.
Their general liability insurance purchase process is simply the best online experience I've ever had in my life!
As long as they cover your line of business, you're literally covered! best rates, best coverage, best online experience, best professionals, can't be happier that I chose them!
It really can't get any better than this... wow