Alabama Commercial Vehicle Insurance
Get a full analysis of Alabama commercial vehicle insurance costs, coverages & companies.
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Christine Lacagnina has written thousands of insurance-based articles for TrustedChoice.com by authoring consumable, understandable content.
Find the Best Commercial Vehicle Insurance Rates & Companies in Alabama
Alabama offers a diverse range of geography, from the coastline to the mountains and rural areas. With such a varied landscape, it's no wonder that the state is a big attraction for tourists and businesses. But if you own a business in Alabama, you most likely use vehicles to conduct business. Having commercial auto insurance for your business vehicles is critical to keep your business running smoothly in case of an accident.
Luckily, an independent insurance agent in Alabama can help you find the right commercial vehicle insurance for your unique company. They'll get you set up with all the coverage required. But first, here's a deep dive into Alabama commercial vehicle insurance.
Best Commercial Vehicle Insurance Companies in Alabama
Your business deserves high-quality coverage. So, when you're ready to find the best commercial auto insurance companies in Alabama, start by referring to our list below. We've put together a few of our top recommendations for the best commercial auto insurance in Alabama for your convenience.
- Travelers: Travelers has been in the industry for quite some time and offers commercial auto insurance along with many other business and personal insurance products. The insurer has excellent AM Best and Better Business Bureau (BBB) ratings, great customer feedback, and many discount options.
- Progressive: Progressive is known for its excellent ratings and offers commercial auto insurance and many other business and personal insurance products. The insurer has superior financial strength and offers 24/7/365 customer service.
- Nationwide: Nationwide is another top-rated carrier that offers commercial auto insurance along with many other business and personal insurance products. The insurer also has excellent ratings from AM Best and the BBB and offers 24/7 claims reporting.
An Alabama independent insurance agent can help you find the right commercial vehicle insurance policy from one of these outstanding carriers. They'll help ensure your business meets all Alabama commercial vehicle regulations when it comes to insurance.
What Commercial Vehicle Insurance in Alabama Can Cover
A commercial vehicle insurance policy may include several types of coverage. An Alabama commercial auto policy may contain some or all of the following:
- Medical payments insurance: This covers expenses associated with medical treatments if a company driver or their passengers get injured in an accident while using a company vehicle for business purposes.
- Liability insurance: This covers expenses associated with property damage or bodily injury your business causes a third party with a company vehicle.
- Collision insurance: This covers expenses associated with damage to your business vehicles from a collision with another driver, regardless of fault.
- Comprehensive insurance: This covers expenses associated with damage to your business vehicles due to a non-collision event such as a flood or theft.
- Uninsured/underinsured motorists insurance: This covers expenses associated with accidents involving other drivers who don't carry enough or any car insurance of their own to pay for their portion of the expenses.
Businesses must fulfill Alabama commercial vehicle registration requirements with adequate commercial auto insurance. An independent insurance agent in Alabama knows exactly how much coverage your business needs.
How Much Commercial Vehicle Insurance Is Required in Alabama?
Alabama state law mandates certain types and amounts of commercial auto insurance for businesses with company vehicles. If your Alabama business uses company vehicles for work operations, it must be equipped with at least the following commercial auto coverage types and amounts:
- Bodily injury liability insurance: Coverage of at least $25,000 per person and $50,000 per accident of bodily injury liability insurance is required for businesses with company vehicles in Alabama.
- Property damage liability insurance: Coverage of at least $25,000 per incident of property damage liability coverage is required for businesses with company vehicles in Alabama.
Keep in mind that Alabama commercial vehicle enforcement dictates that your business must be equipped with this minimum business auto insurance to avoid penalties like fines.
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What Commercial Vehicle Insurance in Alabama Will Not Cover
Commercial auto insurance in Alabama comes with its own set of exclusions. While these may vary by policy, in general, you can expect your coverage to exclude the following:
- Other types of business property, including inventory, that's covered by commercial property insurance
- Employee injuries that are covered by a workers' compensation policy
- Accidents caused by company drivers who were intoxicated
- Any damage to company vehicles from environmental pollutants
- Any intentional harm to others or their property caused by drivers of company vehicles
Your Alabama independent insurance agent can help you locate the exclusions of your specific commercial auto insurance policy.
Average Cost of Commercial Vehicle Insurance in Alabama
You can expect the average commercial vehicle insurance policy in Alabama to cost a bit under $150 per month for many businesses. However, these costs can vary based on some or all of these factors:
- How often all company vehicles are used and where they're driven
- Your company's claims history
- The driving history of any employees who use company vehicles
- Your business's size, annual revenue, and location
- The kind of coverage included in your policy
- The type and amount of company vehicles that need insurance
An independent insurance agent in Alabama can help your business get set up with the cheapest coverage near you that gets the job done right.
Popular Questions about Alabama Commercial Vehicle Insurance
Yes, you'll need commercial auto insurance in Alabama if your business has company vehicles. Any vehicles used for business operations, such as deliveries, must be insured.
Alabama state law requires commercial auto insurance for qualifying businesses. These include any businesses that use delivery vans or other company vehicles to carry out work duties.
In Alabama, a commercial auto insurance plan must at least include bodily injury liability and property damage liability insurance. However, you can customize your business's policy as long as you satisfy these minimum requirements.
The following types and amounts of commercial auto insurance are required in Alabama:
- Bodily injury liability insurance: Coverage of at least $25,000 per person and $50,000 per accident of bodily injury liability insurance is required.
- Property damage liability insurance: Coverage of at least $25,000 per incident of property damage liability coverage is required.
Yes, your business can deduct its commercial vehicle insurance costs from its taxes. The premium rate of your business's commercial auto policy is considered a business expense that can be deducted from its annual taxes.
In Alabama, commercial auto insurance must at least cover liability in the form of bodily injury or property damage to third parties. However, your business can choose to add collision or comprehensive coverage, as well as uninsured motorist, personal injury protection or medical payments, and others.
In Alabama, commercial auto insurance costs an average of just below $150 per month. However, your business's policy rate may vary based on your company's size, annual revenue, and other factors.
Alabama independent insurance agents can pull quotes and shop and compare policies from multiple commercial vehicle insurance carriers in your area. They'll ultimately get you matched to a policy that offers the best blend of coverage and cost. Better yet, your agent can help your business file claims down the road and update your coverage as necessary.
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