Tennessee Commercial Auto Insurance: Quotes From $47/mo

According to Statista, there were over 5.2 million licensed drivers in Tennessee. If you use vehicles in your Tennessee business, that is a lot of potential for liability. This article will examine the basics of Tennessee commercial auto insurance. Commercial auto insurance is one way businesses protect themselves from liability, bodily injury, and property damage.


What is Commercial Auto Insurance?

Commercial auto insurance is how businesses protect themselves from the costs of using a vehicle. If your business transports materials, clients or uses your vehicle in other ways, you will want this coverage. Commercial auto insurance Tennessee has requirements for liability and other protections that your policy must follow. You cannot just get a policy with any coverage that you want.


Auto Accident Statistics in Tennessee

Tenesse records its auto crash data through the Tennesse Department of Safety & Homeland Security. See the chart below for auto accident statistics during 2020.

Total vehicle accidents 175,065
Motor vehicle crashes from distracted driving 23,815
Motor vehicle accidents involving deer 6,549
Deer vehicle accidents that disabled vehicles 2,120
Total costs of road accidents Over $90 million
Non-motorists injured or killed 500
Percent of fatal crashes involving alcohol and drugs 10%


Knoxville, Tennessee

There were 11,484 auto accidents in Knox County in 2020. This is the county where Knoxville, Tennessee, resides. Your commercial auto insurance Knoxville tn can protect you from the liabilities and repair costs your vehicles may cause.


Memphis, Tennesse

Shelby County, where Memphis resides, had 35,018 auto accidents in 2020. Commercial auto insurance Memphis tn will provide coverage to protect business vehicles when they get into an unfortunate road accident.


Components Of Tennessee Commercial Auto Insurance

Commercial auto insurance companies in Tennessee will offer different coverages in your policy. Below are the components of commercial auto that insurers provide.


Collision Coverage

Your auto collision coverage will help pay for damage to your vehicle from road collisions. This coverage will apply regardless of who is at fault in the accident. Typical events covered include:

  • Colliding with another vehicle

  • Objects falling on your car

  • Hitting potholes

  • Colliding with an object, light street lamp, or mailbox

Comprehensive Coverage

Like collision coverage, this policy protects against physical damage to your vehicle. However, comprehensive coverage protects against harm from sources other than collisions. Covered events include:

  • Fire

  • Theft

  • Vandalism

  • Hitting animals

  • Weather events

Auto Liability

This policy pays costs that you are found liable for to the affected party. Your policy will include bodily injury and property damage that your business vehicles inflict on others. It will also cover legal expenses if someone sues you.


Medical Payments

Medical payment coverage helps pay for your drivers’ and passengers’ medical and funeral expenses. This policy will pay out regardless of the party at fault for the accident. A medical payment policy helps get reimbursed for medical expenses quickly. Often vehicle accident injuries can be expensive and require immediate attention. You sometimes don’t have the benefit of waiting for the best price or getting another driver’s payout.


Auto Glass Coverage

An Auto Glass policy covers damage to your vehicle’s windshield. This coverage makes repairing and replacing your windshield more manageable than other vehicle damage coverage.


Expanded Towing Coverage

While many commercial auto policies will cover some form of towing, expanding towing lets coverage for more events. This policy can help you get coverage for jump starts, towing to more places, and roadside service repairs.


Uninsured/Underinsured Motorist 

This policy will help you pay for medical costs or property damage that someone else is liable for. Suppose the other party’s insurance can not cover the damage they inflict. In that case, this policy can help you make up the difference. This coverage will also help protect situations where the other party cannot be found, like hit-and-runs. It can also protect named drivers when they are hit as a pedestrian.


Gap Insurance

Gap insurance covers your financed vehicles when you still owe money on an auto loan. When your vehicle becomes totaled, you will get a payout based on its actual cash value. This amount might be lower than the remainder of your loan amount on the car. Thanks to this policy, you won’t have to worry about paying for a vehicle you can’t use.


Hired And Non-Owned Auto Insurance (HNOA)

Commercial auto insurance policies are focused on providing liability coverage for business-owned vehicles. HNOA insurance will cover personal vehicles for employees and other vehicles used that your business doesn’t own. Coverage will include personal, leased, or rented cars used for business operations. However, this policy will not cover damages to these vehicles.


Rental Reimbursement Coverage

Helps you pay for a rental car so you can still do business after your vehicle gets into an accident. You will get coverage up to the limits of your policy.

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Tennessee Commercial Auto Insurance Requirements

Tennessee commercial auto insurance must satisfy specific requirements set by state laws. These insurance requirements are outlined below.


Auto Liability

Tennessee vehicles must have certain liability coverage limits for bodily injury and property damage.

Bodily injury per accident Total injuries per accident Property damage per accident
$25,000 $50,000 $25,000

Uninsured Motorist

Insurance companies in Tennessee are required to offer customers Unisired motorist coverage in their auto policies. However, customers can reject this coverage in writing if they choose. 


A building in Tennessee.


Deductibles in Commercial Auto Insurance

A deductible is the amount you must pay out of pocket before your insurance will kick in. The amount you pay for a deductible is variable. Insurers offer high and low deductible options for their customers. A lower deductible will mean you pay more for your policy. One way to save money on your premium is to choose a higher deductible. Commercial auto insurance will typically have deductibles for certain types of coverage that include:

  • Collision

  • Comprehensive

  • Uninsured motorist

Exclusions of Commercial Auto Insurance

Your commercial auto insurance policy will not cover every event your vehicles encounter. Some standard exclusions of commercial auto insurance are explained below.


Expected Injuries

If you or an employee use a vehicle in a way that is intended to cause damage, this will be excluded. Expected injuries include high-risk actions that are likely to lead to vehicle damage. You will only be covered for reasonable activities for your business.


Pollution

If you transport hazardous chemicals and materials with your business vehicles, you may not get coverage with commercial auto. The costs of cleaning up pollution spills and transporting hazardous materials must be supplemented by pollution insurance.


War and Terrorism

If your vehicle is injured through a significant event like war, insurrection, or rebellion by the public, this will fall outside coverage.


Racing

If your business partakes in professional or organized racing activities, you will not be covered by commercial auto insurance. The inherent risks of vehicle sporting events mean damage are more likely to occur.


Is Tennessee a No-Fault State?

No. Tennesse is an at-fault state. This means that the responsibility for the damages of auto accidents falls on the party found to be at fault. No-fault states will require that personal injury protection is required for insurance policies. Tennessee does not require personal injury protection.

Personal injury protection is also called no-fault insurance. Personal injury protection can be beneficial because it promptly makes payments. You will not have to wait for the liability claim from the other insurance company to make the payments.


Can My Tennesse Auto Insurance Be Used If I Move to Another State?

No. If you move to another state, you must buy an insurance policy in that state. One reason for this is that states have different insurance requirements. Your insurer can deny claims on your policy if they find out you have moved to another state.


Can My Vehicles Drive In Tennesee Without Insurance?

No. Tennesse law requires that all vehicle operators can provide proof of financial responsibility for any damage they might cause. If you drive in Tenessee without insurance, you may face penalties. You can have your license suspended, your registration taken and pay a fine.

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Tennessee Commercial Auto Insurance Cost

The cost of your Tennessee commercial auto insurance policy may start as low as $45 per month or $540 per year. How much you pay for insurance depends on how many vehicles you need insured and other factors. Here’s  a table showing the rates of the best companies:

Cost per Month Cost per Year Best for
NEXT $47 $564 Best overall; Fastest commercial auto insurance
CoverWallet $49 $588 Comparing rates for commercial auto insurance online
The Hartford $55 $660 Small business commercial auto insurance
Tivly $57 $684 Comparing rates for commercial auto insurance online
Thimble $62 $744 Simple insurance policies
Hiscox $66 $792 Customer support for insurance policies

Compare Cheap Commercial Auto Insurance Quotes Online

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Best Tennessee Commercial Auto Insurance Companies

We have you covered with these reviews of the best Tennesse commercial auto insurance companies. Read on to know their pros, cons, and average rate. 


NEXT Insurance

Pros 

  • Get a quote in 10 minutes

  • Handles the insurance claims of its policies

  • Transparent pricing structure 

Cons

  • Couldn’t find any

NEXT offers an entirely online process for buying commercial auto insurance. They provide excellent policy options like rental reimbursement, towing & labor, property damage, and more. You get quotes online quickly. NEXT has an excellent score with AM Best for financial security. They also have a B+ rating with the Better Business 

Best for: Best overall; Fastest commercial auto insurance

Average cost: $47 per month 

Our rating: 10/10


The Hartford Insurance

Pros

  • 200 years of industry experience

  • Offers a mobile app to track policies

  • Customize your commercial auto policy

Cons

  • The buying process isn’t as easy as other insurers.

The Hartford is an excellent choice for your Tennessee commercial auto insurance policy. They have a car insurance calculator to help you figure out your premium. You will find an abundance of different coverages like auto glass, gap insurance, and towing insurance.

Best for: Small business commercial auto insurance

Average cost: $55 per month

Our rating: 10/10 


CoverWallet Insurance

Pros

  • Different partners that offer commercial auto

  • Manage your policies from one place

  • Allows you to skip filling out a form and get help from a representative

Cons

  • Some reviews talk about delays in processing claims.

CoverWallet is a digital space to buy insurance. You can compare quotes from top carriers like Hiscox, Progressive, and Markel. While on their platform, you have access to over ten providers that you can compare costs with. CoverWallet has an A+ rating from the Better Business Bureau. 

Best for: Comparing rates for commercial auto insurance online

Average cost: $49 per month 

Our rating: 10/10


Tivly Insurance

Pros

  • Coverage for cars, cargo vans, and food trucks

  • Offers gap insurance

  • Easy to compare quotes with insurers

Cons

  • Some companies need a separate policy for dump trucks and semi-trucks

Tivly offers excellent options for commercial auto insurance with the convenience of an online platform. This company helps you narrow the field to find one that suits your business needs. Tivly have over 200 insurance partners to select from. Call now to compare quotes over the phone. 

Best for: Comparing commercial auto insurance quotes over the phone 

Average cost: $57 per month 

Our rating: 10/10


Thimble Insurance

Pros

  • Fast growing insurer

  • Get quotes quickly

  • Excellent app to track your policies and claims

Cons

  • Simpler policies than other insurers

Thimble offers simple insurance policies that are easy to understand. Their ease of use makes them an attractive option for someone who needs to get policy coverage quickly. This company boasts that 75% of its customers are first-time buyers. The Better Business Bureau gave Thimble an A+ rating.

Best for: Simple insurance policies

Average cost: $62 per month 

Our rating: 10/10 


Hiscox Insurance

Pros

  • A rating from AM Best

  • Report claims by phone, mail, or online

  • Recommended by 4.710/10 people surveyed

Cons

  • Does not allow payment through Paypal

Hiscox offers insurance that is focused on the needs of its customers. The company was founded in 1901 and has a long history of underwriting expertise. At Hiscox, you can get fully customized policies crafted with the help of their knowledgeable agents. Hiscox has an A rating from AM Best.

Best for: Customer support for insurance policies

Average cost: $66 per month 

Our rating: 10/10 

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