Like many other states, Pennsylvania requires businesses that use vehicles for commercial purposes to carry minimum amounts of auto insurance coverage. This requirement ensures that businesses are financially prepared to handle potential liabilities resulting from accidents or damages caused by their vehicles.
As a business proprietor, you must understand the significance of commercial auto insurance to safeguard your assets. Operating commercial vehicles entails inherent risks, ranging from accidents to theft or vandalism. Pennsylvania commercial auto insurance is essential for mitigating these risks and protecting your company.
Commercial auto insurance is a type of insurance designed to protect your business vehicles. It covers damage or responsibility from accidents involving your company's cars, trucks, vans, or other vehicles used for business purposes.
Commercial auto insurance safeguards your business against various events, such as collisions, theft, vandalism, and natural disasters. The coverage typically includes bodily injury and property damage liability, medical payments, comprehensive coverage, and collision coverage.
Commercial auto insurance can minimize the financial burden of vehicle repairs, medical expenses, or legal claims resulting from accidents. Additionally, it offers the benefit of ensuring uninterrupted business operations by providing prompt vehicle repair or replacement, allowing you to get back on the road quickly and efficiently.
Data collected and published by the Pennsylvania Department of Transportation (PennDOT) in 2020 showed that at least 286 auto accidents occur in a day in Pennsylvania. And at least 3 people sustain fatal injuries, and 168 sustain major and minor injuries within 24 hours. This report also showed that the majority of the accidents in Pennsylvania occur on state highways, turnpike and local roads. It also indicated that October to December is when most car crashes occur.
Here are the Pennsylvania commercial auto insurance requirements you must conform with:
Liability insurance–Pennsylvania requires commercial cars to obtain liability insurance. The minimum liability limits are $15,000 for bodily injury per person, $30,000 for bodily injury per accident, and $5,000 for property damage
First Party benefits–Pennsylvania commercial auto insurance policy must offer first-party benefits. This coverage provides medical benefits for injuries sustained by insured driver and their passengers
Uninsured and underinsured motorist coverage–This policy protects you and your passengers if a driver without insurance or with insufficient insurance hits you
Proof of insurance–In Pennsylvania. you must have evidence of insurance and present it to law enforcement or other authorized officials upon request
Commercial vehicle registration–You must register your commercial vehicles in Pennsylvania. Proof of insurance is typically required during the registration process
When it comes to Pennsylvania commercial auto insurance, there are main components you should be aware of.
Liability coverage–Liability coverage protects you financially if you cause a third party bodily harm or property damage while driving a commercial vehicle. This coverage helps cover medical expenses, property repair costs, and legal fees associated with a liability claim after you cause an auto accident. Having sufficient liability coverage is crucial for protecting your business assets and ensuring that you can meet your financial obligations in case of accidents or other incidents involving your commercial vehicle.
Collision coverage–It covers damage to your commercial car from a crash, no matter who was at fault. Collision Coverage pays for fixing or replacing your car after an accident. This insurance helps you get back the money you spent to fix your car after an accident.
Comprehensive coverage–This coverage safeguards your commercial vehicle against non-collision-related damages. It gives protection against dangers such as theft, vandalism, fire, weather damage, and falling objects. Comprehensive coverage helps repair or replace your car if it's damaged or lost due to one of the risks mentioned. It provides valuable financial protection against unforeseen events beyond your control, safeguarding your business vehicle against various risks and potential financial losses.
Medical payments coverage–This coverage pays for medical bills for you, your passengers, and anyone else hurt in an accident with a commercial car, no matter who was at fault. It covers medical bills, hospital stays, ambulance fees, and other necessary medical treatments related to the accident. Medical Payments Coverage provides financial support for immediate medical needs, ensuring that individuals involved in the accident receive timely and appropriate medical care without facing significant out-of-pocket expenses.
Property damage coverage–This policy protects you financially if your commercial vehicle damages someone else's property in an accident. Whether it's a vehicle, building, or other structures, Property Damage Coverage helps cover the costs of repairing or replacing the damaged property. This coverage provides you with peace of mind, ensuring that you can fulfill your financial obligations in case of property damage incidents, and helps protect your business from significant liability claims that may arise from such situations.
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Pennsylvania commercial auto insurance has different coverage levels based on the policy and the insurance company. Liability coverage limits usually run from $250,000 to $1 million, and property damage coverage limits can be anywhere from $50,000 to $250,000.
Here are common add-ons or optional coverages that can be added to a Pennsylvania commercial auto insurance policy. They include:
Trailer interchange coverage–Trailer interchange coverage is an important part of your Pennsylvania commercial auto insurance coverage if you often trade trailers with other businesses or people. This insurance protects the trucks while they are in your care, in your custody, or under your control. Whether you are swapping trailers with another company for a specific shipment or taking part in a trailer pool, this coverage protects you financially if accidents, theft, or other covered events damage the trailers you are briefly responsible for.
Uninsured/underinsured motorist coverage–Protects you and your business if a driver without insurance hits you. If you or your employees are injured or your vehicles are damaged, this coverage covers medical bills, property damage, and other expenditures. It makes sure that the actions of an uninsured or underinsured driver don't leave you with big bills and losses.
Hired and non-owned auto–Hired/non-owned auto coverage beyond the company-owned vehicles. It provides coverage for liability and physical damage for rented vehicles and employee-owned vehicles used for business purposes. Whether renting a car for a client meeting or using an employee's vehicle for a business assignment, this coverage protects you in case of an accident or damage while using non-owned vehicles for business.
Equipment and tool coverage–Equipment and tool coverage is an important Pennsylvania commercial auto insurance add-on if your business cars have special equipment or tools that are always attached. This protection protects your tools and equipment from being stolen, broken, or lost. This coverage pays for fixing or replacing expensive machinery, special fixtures, and other important business tools.
Umbrella liability coverage–This coverage extends your primary liability coverage. Umbrella liability coverage protects you after your usual liability limitations are exhausted in a major accident or litigation. It protects your organization from catastrophic claims like bodily injury, property damage, and legal fees exceeding your coverage. Umbrella Liability coverage protects your business from large financial liabilities and ensures its long-term stability.
Here are vehicles eligible for commercial auto insurance in Pennsylvania:
Delivery vehicles–Delivery cars should be insured if you own a delivery service or a restaurant that makes deliveries. This includes cars, vans, and trucks used to make deliveries.
Cars used for construction–If you work in the construction business, you can get insurance for your construction vehicles. Cement mixers, dump trucks, and other heavy-duty building trucks are also available.
Cabs and ridesharing vehicles–Commercial insurance plans cover cabs and ridesharing vehicles like Uber and Lyft. This ensures you have enough coverage when you're getting paid to drive people around.
Commercial trucks–If you own or run a trucking company, you can get insurance for your commercial trucks. This includes tractor-trailers, box trucks, flatbed trucks, and other big vehicles used to carry cargo over long distances.
Tow trucks–Tow truck owners can get insurance for their vehicles. If you have business car insurance, you can protect your tow trucks from being sued and get help on the road if they break down.
Food trucks–If you own or run a food truck or mobile food business, you can get insurance for your food truck. Food trucks need business car insurance to cover accidents, theft, and other risks.
Pennsylvania commercial auto insurance is $47 per month or $564 per year for a $1 million auto liability coverage. Factors that affect premiums are claims history, business history, policy limits, deductibles, and number of employees. Here’s a table showing the cost of a $1 million auto liability coverage from the best companies:
|Cost per Month||Cost per Year||Best for|
|NEXT||$26||$312||Best overall; Fastest commercial auto insurance|
|CoverWallet||$28||$336||Comparing commercial auto insurance quotes online|
|The Hartford||$31||$372||Commercial auto insurance policies with unique benefits for AARP members|
|Tivly||$35||$420||Comparing commercial auto insurance quotes over the phone|
|Thimble||$37||$444||Businesses with short-term coverage needs|
|Hiscox||$39||$468||Businesses seeking specialized coverage|
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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 is one of the best commercial auto insurance companies in Pennsylvania. They work with small businesses. Their online tool makes it easy to buy and manage policies. NEXT uses AI-driven underwriting of policies to give fast and accurate quotes. Additionally, they specialize in serving niche industries like contractors, people who work in the fitness industry, and beauty shops.
Best for: Best overall; Fastest commercial auto insurance
Average cost: $26 per month
Our rating: 10/10
Easy online access to policies and documents
Prices and rules that are easy to understand
Fast payment of claims
Some types of insurance cost more than other types
Coverwallet has great customer service and makes it easy to buy commercial car insurance online. With an easy-to-use interface and advanced technologies, they help businesses get prices and handle policies. Coverwallet gives you a lot of choices for coverage, so you can make your policy fit your needs. Their insurance experts are informed and can help you pick the right coverage for your business. Coverwallet gives commercial auto insurance in Pennsylvania that is easy to use, has personalized service, and is easier to do online.
Best for: Comparing commercial auto insurance quotes online
Average cost: $28 per month
Our rating: 10/10
A reputable and trustworthy insurance company with over two centuries of experience
Wide network of agents offering personalized assistance
Stability and trustworthiness in the insurance business
Claims team for a quick and easy answer
Have Risk management tools and resources
Customization of policies may slow application and underwriting
The Hartford is a reputable and well-established commercial auto insurance company with a long history of serving Pennsylvania businesses. The Hartford is safe because it is financially stable and has a good name. Their policies protect your business by giving you a lot of liability and property loss coverage. The Hartford also has valuable risk management tools to help people control risks and losses. The Hartford's auto insurance is great if you want consistency, a wide range of coverage, and risk management tools.
Best for: Established businesses, industry expertise
Average cost: $31 per month
Our rating: 10/10
It's easy to buy insurance over the internet
Simple control and writing up of policies
Fast help and great customer service
You need to call to compare quotes
Tivly is an insurance broker that works with reputable insurance companies such as The Hartford, Gallagher, Liberty Mutual, and Progressive. Work with this company because it will take you to the best commercial auto insurance company that best matches your needs and business profile. Call now to compare quotes over the phone.
Best for: Comparing commercial auto insurance quotes over the phone
Average cost: $35 per month
Our rating: 9/10
On-demand coverage for customizable project durations
Easy online application
Online policy management makes changes simple
Coverage for one day, week, or month
Customer service is excellent
You can’t reach customer service by calling
Thimble stands out in insurance because it offers coverage on-demand, which is an innovative idea. With Thimble, you can buy insurance on an hourly, daily, or monthly basis. Thimble is a great choice for businesses that value ease and flexibility because their mobile app is easy to use and lets you get coverage right away. Thimble does not provide commercial auto insurance, however customers are referred Tivly to get coverage.
Best for: Businesses with short-term coverage needs
Average cost: $37 per month
Our rating: 9/10
Policies that are tailored to specific risks and liabilities
Insurance options for different kinds of businesses
Claims are handled quickly and in a proactive way
Strong name and track record in the insurance business
Coverage options may be limited for enterprises with unique needs
Hiscox offers commercial car insurance for businesses in Pennsylvania. Hiscox has a wide range of coverage options to meet the unique needs of businesses. Their main areas of expertise are risk management and customized insurance options. Throughout the insurance process, dedicated underwriters and claims workers are there to help each person. Hiscox has reliable coverage, knowledge, and a strong commitment to meeting your business's needs.
Best for: Businesses seeking specialized coverage
Average cost: $39 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