Obviously, there are different rules in Florida with regards to commercial auto insurance requirements. You can learn about this in more detail here. The same minimum coverage, $10, 000 x 2, property damage + personal injury coverage just isn’t going to cover things for those who operate large vehicles for businesses on a regular basis. The state requires individuals to be able to demonstrate financial responsibility in this regard, with the exact costs of a policy being related to a number of factors.
The four basic factors relating to commercial auto insurance in Florida
First off, there are the distances which the driver(s) will typically drive. This also includes every possible way the vehicle is being used as well. Anything that might be considered to influence or damage someone or something should be listed. For example, if you have a large truck that does nothing more than deliver flowers around your metropolitan area, you’ll need a very different style of coverage vs. the person who works for an interstate hauling business. Often times business-related materials cannot be removed from a vehicle or might have an auto that only tradesmen use – all of these things matter. Likewise, there are special considerations to keep in mind if you’re going to be transporting additional passengers as well (i.e. – like a taxi service).
Then there’s the issue of who is actually driving the automobile(s). Each individual’s driving record and personal history will likely affect pricing options, and this will begin to multiply quickly if you’re talking about a policy which insures a fleet of drivers and vehicles. Of course, this will require investigation on the part of the policy holder(s) and even more research time.
Who actually owns the vehicle being insured is also of vital importance. Regardless of who might be driving a commercial vehicle, who owns the thing is also of vital importance. Because rates are often linked to personal data like driving history or even credit scores, owners with better standing ultimately stand to receive better discounts (as you’d expect).
Lastly, there’s the make / model of each automobile and number being insured to consider. Just like with your conventional auto insurance policies, what make / model your vehicle is and what condition it is in will also influence the cost(s) of your policy. In most situations this means that newer autos and those with more recently added safety features will get the best commercial rates. Be sure to check out the specifics for your own Florida auto insurance requirements.
Why is commercial auto insurance important?
In short, you obviously want your business to be in compliance with the law, but having the correct insurance is also needed to make sure that your business can remain up and running should an accident occur. Moreover, one should consider who might be fronting the costs of dealing with an incident as well, the two biggest concerns being property damage and replacing a damaged fleet vehicle, for instance. However, by and large one’s thoughts should be in trying to make sure that (even in the even of an absolute disaster, perhaps resulting in the complete destruction of one or more vehicles) you can keep your business operating. Fully understanding the value in Florida commercial auto insurance usually leads to a policy upgrade.