Agency Owner, The Thomas G Sheehan Agency, 27 Glen Road Sandy Hook, CT 06482
It may because for the most part business vehicles tend to be driven more thus increae the risk to an insurance company. It is best to talk with your insurance professional about options available to you that meet your specific needs and concerns. Also talk to your tax professional about the advantages or disadvantages with regard to your filings.
Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
Commercial auto insurance is what generally covers a business vehicle. These policies usually cover a fleet of vehicles and the rating is done against a list of drivers. The use of the vehicle and the mileage of the vehicle are two other critical rating components. As the fleet of vehicles gets larger the amount paid by the operator starts to closely reflect the losses suffered by the insurance company until the company gets large enough that it skips the insurance company and assumes all the risk, or most of the risk themselves. This is known as self-insurance.
Personal auto policies are rated on other criteria. In some situations the policy may be less expensive than if it was on a commercial policy. Most of the time, however, because of their increased usage, the business auto policy will be more expensive.
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Personal auto policies are rated on other criteria. In some situations the policy may be less expensive than if it was on a commercial policy. Most of the time, however, because of their increased usage, the business auto policy will be more expensive.