How to Get the Best Commercial Auto Insurance in NJ

October 15, 2022

If you have work vehicles, you have to have commercial auto insurance. Without it, you can be left liable to cover hundreds of thousands of dollars in damages if an accident happens. But how do you get the best commercial auto insurance in New Jersey?

Let’s take a closer look at what exactly commercial auto coverage entails before diving into four ways you can ensure you’re getting the best insurance and the best rates.

What is Commercial Auto Insurance

Commercial auto insurance is very similar to personal car insurance in that they’re both designed to provide coverage for vehicles. But while personal auto insurance only covers vehicles used for personal use, commercial auto can apply to both vehicles purchased for your business and personal vehicles you use for business-related purposes. Typically, commercial auto insurance is designed to cover specific vehicle types including:

Delivery vehicles
Work vans
Dump trucks
Construction-related vehicles
Food trucks
Service utility vehicles
Box trucks
Company cars

Commercial auto coverage traditionally provides both liability and collision damage insurance options at higher coverage limits than personal vehicle insurance may offer which can be beneficial if you face a lawsuit relating to an automobile accident.

Determine Your Coverage Needs

When you’re looking into the best auto insurance coverage options for your business, the first thing you need to do is determine what your specific needs are. Commercial auto insurance options cover a much wider range of potential damage claims than personal vehicle insurance options including:

Medical payments and personal injury claims relating to an accident
Theft of vehicle or items within
Vandalism
Weather damage
Damages caused by uninsured or underinsured drivers
Trailers used with business vehicles
Rental costs
Employee vehicle coverage if the car is used for business

Each of these potential damages may be insured under different coverage types within a commercial auto policy. Liability and collision coverage options are usually a given for these policy types, so additional coverages including rental reimbursement, comprehensive coverage, personal injury protection, uninsured or underinsured motorist coverage, and medical payments coverage options may be added to your policy depending on your unique needs.

Research Your Options

When looking for the best commercial auto insurance providers in New Jersey, make sure you do your homework. Carefully research a few different insurance providers you’re considering and get a feel for how well-liked they are by individuals and businesses who use or have used their services. Also, take the time to evaluate their offerings against your predetermined coverage needs.

If you find a provider who has excellent liability coverage, but lackluster rental reimbursement options, they may work very well for your business if you rarely need to use rental transportation. Similarly, if you’re located in a bigger city like Newark and need to prioritize collision insurance, make sure you find a policy that can meet your needs.

Become Eligible for Potential Discounts

One of the best ways you can get better commercial auto insurance rates is by shopping around and comparing pricing between multiple different providers with your agent. And while you’re looking for better rates, keep in mind that there are a few things you can do ahead of time that may increase your eligibility for certain policy discounts.

Be a Safe Driver

If you’re a safe driver with no record of accidents, tickets, or other related fines or fees on your license, you can exponentially increase your chances of becoming eligible for discounts. A safe driving record shows your potential insurance provider that you are far less likely to be involved in an accident than other drivers and a lower-risk investment for them.

You can maintain your status as a safe driver by maintaining speed limits, following posted driving regulations, and avoiding multitasking while driving.

Invest in Safety Tech

Another way you can prove your safe driving commitment to insurers is by investing in technology designed to lower your risk of accidents or injuries. These can include a wide range of items such as dash-cams, anti-theft devices, airbags, steering wheel locks, and much more.

Work With an Insurance Agent

Insurance agents will be able to understand your needs, analyze the market, and communicate with providers far better than you may be able to, so working with a trusted local agent is one of the best ways to ensure you get the best coverage.

They can make the process flow much more smoothly and relieve you of potential confusion by taking care of the more complex, technical aspects of finding and comparing rates. Then, they’ll leave you with high-quality advice and recommendations that provide you with policy options that comprehensively meet your needs without breaking your budget.

Selecting Your Commercial Auto Insurance Carrier

When your insurance agent presents you with your best plan options, they will likely have a few different carriers you may choose between. Make sure to choose the plan that works best for you now, and not one you expect to grow into over the coming months.

After all, policies can be adjusted or completely changed from year to year, and you are typically under no requirement to stick with the same provider from one year to the next. Progressive may feature an option that works to meet your needs this year, while the following year Nationwide or another provider may be able to meet different demands you have.

Key Takeaways

Commercial auto insurance is a must-have for any businesses that rely on work vehicles. Finding the best insurance policy for your business may take a bit of effort, but if you work with the right insurance agent to determine your needs, research your options, and optimize yourself as a low-risk investment, it shouldn’t be too difficult.