When conducting business in a vehicle in the state of Colorado, you’re going to need a commercial policy to not only remain protected but to stay legal. Commercial auto insurance in Colorado can come in many different forms and protect your company’s fleet and finances while on the road.
While Colorado commercial auto insurance is an expense, the alternative is even costlier. Failing to have the proper coverages in place can lead to the denial of a claim, legal issues, and being left with costly medical and property damage expenses you aren’t protected for.
The good news is that commercial auto insurance policies are not only tax-deductible in many cases, but you can also cut costs when approaching coverage the right way. But remember, this type of insurance isn’t just for large corporations, anyone conducting business needs this policy when operating a vehicle.
So, while it might be easy for you to shrug this off as only necessary for larger fleets, even small businesses, and contractors will find there are several instances in which commercial auto coverage is necessary. Learn more about this type of business insurance, how your business is protected, and how to cut costs when enrolling.
Who Needs Commercial Auto Insurance in Colorado?
If you are operating a vehicle for commercial reasons in Colorado, you’re going to need commercial auto insurance coverage. This includes vehicles used personally, but are used for commercial means. Commercial auto insurance in Colorado helps you avoid coverage gaps and protect your business. Here are some examples of how:
- Delivering goods in a commercial van or truck.
- A vehicle being driven by a contractor on its way to an appointment.
- Goods are transported by 18-wheelers and hotshot drivers.
- A salesman who uses a company car
It’s easy to think that commercial car insurance only applies to large vehicles and companies, but there are several smaller examples that also require coverage. This could be a Realtor driving clients to a showing, contractors conducting business, e-commerce business owners delivering an order, etc.
The size of your business is less important than you conducting business in the first place. If you’re driving a vehicle for a commercial reason, you’ll need to have commercial auto insurance in Colorado. Otherwise, any incidents that occur during this time can open up your business to substantial expenses to restore not only your own losses but also the losses of other parties that are involved.
How Commercial Auto Insurance Protects Colorado Businesses
Colorado commercial auto insurance policies come in many different forms. Not all of them are required, but you’ll need to have liability coverage no matter who you are. All drivers in The Centennial State will need to have a liability policy to remain legal.
Other policies can help you protect your business in many different ways, but liability coverage remains a state requirement as part of your business’s financial responsibility to other drivers on the road. Let’s break down this important coverage further below.
Commercial auto policies are most important in terms of their liability coverage. This is because not only is it mandatory, but it restores another party’s losses for both property damage and bodily injury. Here are the minimum amounts of coverage required, according to Colorado law:
- $15,000 per accident for property damage
- $25,000 per person for bodily injury
- $50,000 per accident for bodily injury
Property damage coverage restores property damage for the party affected by the accident. Bodily injury coverage covers the costs of physical injury that occurs as a result of an accident. This means coverage for medical expenses, funeral costs, lost wages, and possibly other damages.
If you’re looking to get more coverage, you can raise your policy limits accordingly. While you’ll pay more in monthly premiums, the end result can help you avoid a large financial loss for your company.
Not that while these minimums apply to commercial auto insurance policies, commercial truck insurance has its own set of minimums. To explore them, you can view the minimums your fleet will need to abide by operating in Colorado below.
The Cost of Commercial Auto Insurance Rates in Colorado
Find the cost of commercial auto insurance in Colorado means looking at several different variables. Some of them include the amount of coverage you enroll in, where your business is located, your company’s claim history, and more.
There are many things that go into the decision of carriers to set your premiums, but it all goes down to look at the amount of risk you pose as a client. If you are in a risker industry, or location, and more likely to file a claim, expect higher rates.
Of course, the opposite is also true if you’re looking for cheaper rates, as well. Because every business has unique requirements in Colorado rates may differ significantly. Additionally, each carrier will look at risks differently, which can also show differing prices for coverage.
To protect your business without breaking the bank, obtaining cheap commercial auto insurance is crucial. But it’s always best to shop around. By doing so, you can find a variety of coverages and compare the prices among carriers.
Even when looking at the same exact coverage, you’ll notice that prices can vary greatly simply because carriers will view your risks differently. Freedom Insurance Group is well-equipped to help you find the right coverage at an affordable price by partnering with several top-rated insurers.
Additional Coverages for Colorado Commercial Auto Insurance
Colorado commercial auto Insurance won’t cover everything under a singular policy. Fortunately, there are many other coverages available that can help you protect your fleet against a variety of risks. Different scenarios require different insurance products, which is why business owners are offered a range of options. Explore these coverages below:
Comprehensive auto insurance offers protection for unforeseen incidents that can cause damage to your vehicle outside of an accident. For instance, if your business’s van is vandalized or destroyed by a wildfire, you would need to pay a deductible out of pocket before receiving reimbursement for your losses, but you would be covered.
Fire and Theft With Combined Additional Coverage (CAC)
A more restricted version of comprehensive coverage, fire and theft with CAC is an option you can choose, safeguarding your business’s vehicles from particular perils like fire damage, theft, windstorms, and flooding. It’s an excellent choice for companies seeking to save on costs while maintaining protection.
Collision coverage protects your business’s vehicles from physical damage following an accident with another vehicle, object, or overturning. Liability coverage covers another party, whereas, collision is there to restore your fleet.
To purchase collision coverage, businesses must first have comprehensive coverage or fire and theft with CAC. Like comprehensive coverage, a deductible must be paid before receiving reimbursement.
Underinsured/Uninsured Motorist Coverage
If your company’s vehicle is involved in an accident and the other driver is at fault but uninsured or underinsured, your business may be forced to cover the losses. That is, without the proper coverage in place. Underinsured and uninsured motorist coverage offers protection against such situations, helping you restore your losses without damaging your bottom line.
Medical Payments Coverage
Injuries to employees and passengers can result in significant costs, but medical payments coverage provides protection that covers medical expenses after an accident. With rising medical costs, this is a coverage growing in importance for business owners.
Roadside Assistance and Expanded Towing Coverage
Having a breakdown in the mountains is about as bad as it gets. Roadside assistance is a service that helps you when your business vehicle experiences a minor breakdown while on the road. An extended towing policy extends the coverage provided by roadside assistance and may include towing your vehicle as well as minor repairs.
Gap insurance coverage assists the business in paying off the difference owed, preventing it from being burdened with a remaining loan balance that no longer serves its interests.
If a business vehicle is stolen or totaled and the remaining loan balance is greater than the vehicle’s value, it can become a significant issue. Your business must still pay off the loan and acquire another vehicle to continue its operations.
No matter how your business needs to be protected, we have options for you. Freedom Insurance Group prides itself on providing companies with a customized approach to protection at the lowest price possible. To see your options and how to save money, contact one of our experts today.
Colorado Truck Insurance
Operating a commercial truck is a bit different than a sprinter or car and as you can imagine, their needs are different too. Furthermore, Colorado truck insurance is also mandatory with the ramifications for failing to maintain coverage detrimental to your company.
Even if you only conduct business within CO, there are specific coverages you’re going to need to abide by. Then there are additional considerations you may wish to consider that can help cover your business from liability issues and even cover your operation and finances.
Here are the state minimums required of fleets of trucks must adhere to when operating trucks in Colorado. Note, what you are hauling will also come into play:
- $10,000 worth of cargo insurance for household goods movies in-state and interstate contract carriers.
- $300,000 worth of liability coverage when hauling household goods.
- $750,000 worth of liability coverage for carrying general freight.
- $1,000,000 worth of liability coverage for trucks carrying oil and related products.
- $5,000,000 worth of liability coverage for hauling anything registered as hazmat materials.
When it comes to hauling things outside of the state of Colorado, additional requirements and minimums will apply in accordance with the standards laid out by the Federal Motor Carrier Safety Administration (FMCSA). Speak with a licensed insurance agent to better understand what these requirements are for your industry.
Understanding the different coverages available through truck insurance is critical for protecting your business. Multi-million dollar settlements and judgments can become a major issue for you and your company without the right coverages in place.
Luckily, beyond the minimums required of your business, there are also optional coverages available to help you minimize these threats. Not all will apply, but by taking the time to assess your risks and manage them, you can find affordable coverage that helps your company avoid costly payouts after an accident:
Business owners should note that while this list is a great overview of the additional coverage options available, it is not comprehensive. There are many additional endorsements that may also be available and perfect for your business.
Furthermore, while trailers may be protected by general liability, some require additional protection depending on usage and weight. For a better understanding of available policies and how they fit your company’s needs, talk to an insurance agent.
How to Compare Commercial Auto Insurance Rates in Colorado
If you’re looking for commercial auto insurance in Colorado online, we can help. Here at Freedom Insurance Group, we understand that time is money, so we’ve created our online business insurance quote tool that can provide you with a quick, accurate quote for your coverage.
But if you’re looking for a more in-depth approach, our agents are also available. Our licensed agents are here to help you maximize your coverage while minimizing your costs. We understand the challenges business owners face and are here to help.
Commercial auto insurance in Colorado should protect your business interests and it can’t if you’re overpaying. Compare coverages with our experts, find the right coverage, and enroll in the cheapest policy that’s right for you. Contact us today!