Do I Need Commercial Auto Insurance in Arizona?

Arizona may be famous for its breathtaking National Parks and desert beauty, but this state is also a hotbed for small businesses. In fact, according to the Statistics of U.S. Businesses provided by the Census, Arizona is home to over 650,000 small businesses which accounts for 99.5% of the state's total businesses. The Grand Canyon State is ripe for business opportunities thanks to limited regulations, low taxes, and a growing labor market. Running a small business in Arizona requires equal parts responsibility and hard work. As a business owner, it is up to you to ensure compliance with all state regulations, including commercial car insurance. If you’ve ever Googled ‘commercial auto insurance Arizona options’, and felt overwhelmed by your options Access Insurance Agency of Arizona, LLC (Access) is here to help!

How does commercial auto insurance work?

Whether you run a small car detailing business in Glendale or operate a landscaping business in Phoenix, you and your employees may not be covered under a personal auto policy if you use your vehicle to carry out essential business operations. Generally, any commercial use of your vehicle, whether it be delivering products or transportation between job sites will require a commercial auto insurance policy. This type of coverage usually offers a wider umbrella of protection and can include a higher liability limit. In Arizona, it is suggested that any business that owns and operates vehicles for work purposes carry commercial car insurance. No matter if you own a fleet of vans or a simple sedan, if you use your vehicle to conduct work, commercial auto coverage can be beneficial. Purchasing a commercial auto policy can ease the financial burden of paying out of pocket for repairs or damages caused by an accident involving your vehicle. Fortunately, there are a variety of commercial coverage policies available to suit your specific needs.

Who needs commercial auto insurance?

You may be surprised to learn that many businesses can benefit from commercial auto insurance. From cosmetologists to landscapers, if you are utilizing a vehicle for work purposes you should explore the possibility of commercial coverage. Some of the most common industries that require commercial insurance include:

Landscaping
Courier services
Pool maintenance
HVAC and cleaning
Catering
Event planning

Vehicles that are commonly included under commercial insurance policies include:

Full-size vans
Food trucks
Tow trucks
Cargo vans
Straight trucks
Flatbed trucks

Remember, even if you are driving a personal vehicle for work purposes you may not be covered under your personal auto policy.

Is commercial auto insurance required in Arizona?

Arizona requires all moto vehicles that operate on roads in the state to obtain a minimum of liability insurance through a company that is authorized to do business in the state. This coverage can extend to vehicles ranging from the owner's personal car to a fleet of vehicles owned by the business. Commercial auto insurance can help cover medical expenses and/or property damage costs if an employee or business owner is in an accident while operating a company vehicle.

No matter where you live in Arizona, from Phoenix to Flagstaff, the state minimum requirements for commercial auto insurance are listed as a split limit of 25/50/15. This means you must obtain a $25,000 bodily injury liability for one person, $50,000 for more than one person, and a $15,000 property damage liability. These are the established limits that your policy will pay up to. However, it is important to note that depending on the type of vehicle you are looking to insure, or your type of business, you may be required to carry higher limits

What does commercial auto insurance cover?

Thankfully, commercial auto insurance is not one-size-fits-all. Depending on the nature of your business and the vehicles you wish to insure, you may opt for a wider umbrella of coverage or stick to the minimum requirements. Popular commercial auto insurance coverages can include but are not limited to:

Bodily injury liability - can help cover the other drivers' medical expenses if you or an employee get into an accident.
Property damage liability - can help cover the payment for damages caused to someone else’s property by an accident with your work vehicle.
Collison coverage - can help pay to fix or replace your work vehicle if you collide with another object such as a tree or pole.
Comprehensive coverage - can help cover damages caused to your work vehicle by vandalism, theft, or natural disasters.
Medical payments coverage - may help offset the cost of medical expenses for your employees and any other passengers after an accident and include services such as rehab, dental care, or funerals.
Uninsured/Underinsured motorist coverage - may help cover you or your employee's medical expenses or repair your car after an accident with another driver who does not have or lacks sufficient liability coverage.

What does commercial auto insurance cost in Arizona?

Many factors can play a role in the cost of commercial auto insurance in Arizona. According to Elemental Risk Management, a commercial car insurance policy in the Grand Canyon State can run anywhere from $800 to $2,000 per vehicle per year. Furthermore, many factors influence your coverage costs such as:

Your profession - often professions that require the use of tools and frequent travel to job sites will have higher premiums.
Your driving radius and frequency - businesses that require longer commutes and more frequent travel will usually have higher coverage rates.
Your vehicle size - usually larger vehicles that carry equipment will have higher premiums.
Your business location - generally businesses located in bigger cities will have higher premiums.
Driving history - any drivers within your business with an accumulation of accidents or violations could lead to higher rates.
Coverage needs - depending on your business needs you may require more coverage which will generally lead to a higher premium.

Factors to consider when choosing a policy

Before you get ready to search for ‘commercial auto insurance Phoenix’ you should take time to consider your business's unique needs, risks, and challenges. Work with a licensed agency such as Access to evaluate coverage limits and deductibles and make the right choice for your company. After all, a one-woman flower shop will most likely require different commercial auto coverage than a multi-vehicle landscaping company.

Where can I get commercial auto insurance in Arizona?

Your business vehicles play an important role in its success, so why leave yourself vulnerable? Commercial auto coverage can help cover expenses incurred if you or your employee is in an accident.

Ready to explore your commercial auto insurance options in Arizona? Access Insurance Agency of Arizona is proud to serve the Arizona community and can be reached by phone at 713-773-1680 or one of our local offices in:

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