Commercial Electric Vehicle Insurance Policy Information
Commercial Electric Vehicle Insurance. For countless business owners, transportation plays a vital part in their overall success. Transporting products to clients, meeting with customers, driving clients to and from their locations; no matter what type of business you own, there's no doubt that you rely on transportation to some degree.
New vehicles are constantly being introduced, and a lot of business owners are making a switch to one of the latest innovation in the transportation industry: electric vehicles (EVs).
Not only can EVs help to reduce carbon emissions, but more importantly, they can help to reduce costs and improve productivity; two factors that are particularly beneficial for business owners.
Whether you've recently decided to start using electric vehicles for your business or you're thinking about making the switch sometime in the future, you want to be sure that you have the proper insurance coverage.
Just like traditional combustible engine vehicles, EVs have to be insured. Not sure what type of commercial electric vehicle insurance coverage you'll need?
Read on to find out what type of insurance business owners need to invest in for their electric vehicles.
Commercial electric vehicle insurance protects your EVs used for business from liability and physical damage lawsuits from accidents - with rates as low as $67/mo. Get a fast quote and your insurance card now.
Below are some answers to commonly asked business electric car and truck insurance questions:
- What Is Commercial Electric Vehicle Insurance?
- How Much Does Commercial Electric Vehicle Insurance Cost?
- Is There A Difference Between Conventional Business Auto And Electric Vehicle Insurance?
- Why Does Commercial Electric Vehicle Insurance Cost More?
- What Companies Offer Commercial Electric Vehicle Insurance?
- What Type Of Insurance Coverage Is Available For EVs?
- What Are The Minimum Commercial Electric Vehicle Insurance Requirements?
- What Does Commercial Electric Vehicle Insurance Cover & Pay For?
What Is Commercial Electric Vehicle Insurance?
Commercial electric vehicle insurance is a type of insurance that provides coverage for commercial electric vehicles, such as electric taxis, delivery vans, or shuttle buses. This insurance covers the costs associated with physical damage to the vehicle, liability for injury or property damage to others, and other related expenses. It can also provide coverage for theft, fire, and other types of damage.
The coverage terms and limits of commercial electric vehicle insurance vary depending on the policy, but it is typically designed to meet the specific needs of commercial electric vehicle owners.
How Much Does Commercial Electric Vehicle Insurance Cost?
The average price of a standard $1,000,000 Commercial Electric Vehicle Insurance policy for small businesses ranges from $67 to $129 per month based on location, number of vehicles and drivers, industry, driving records, experience and more.
While EVs usually cost more to insure than vehicles that are powered by combustible engines, the price difference really comes down to the company that's providing the insurance coverage. That's because rates vary from company to company.
Therefore, the best way to find out how much commercial electric vehicle insurance will cost for your business is by actually reaching out to different companies, getting price quotes, and comparing those quotes.
There are factors that will be taken into consideration that will impact the cost of coverage for the cost of covering a commercial electric vehicle. These factors can include:
- How long your business has been in operation
- How many vehicles you'll be insuring under the same policy
- The make and model of your electric vehicle
- What kind of industry you will be using your commercial electric vehicles for
- What type of coverage your policy will offer
- Where your business is located
- Your driving record
Is There A Difference Between Conventional Business Auto And Electric Vehicle Insurance?
Generally speaking, conventional commercial auto insurance and electric commercial auto insurance are the same in that they offer these policies offer the same type of protections; for instance, both types of policies protect other drivers on the road, as well as third-party property owners.
They can also feature other coverage options; for example, they can be customized to cover the cost of any damaged that your company's electric vehicle may suffer in the event that it's involved in an accident, as well as any medical care that the driver or that any passengers in the vehicle may sustain.
So how does commercial auto insurance for standard vehicles and commercial electric vehicle insurance differ? The price.
Typically, auto insurance for commercial EVs is more expensive than the cost of coverage for conventional equivalents because of to the need for special parts that aren't as common and the training and availability for servicing.
It is important to note that some insurers offer special discounts to reward businesses who buy eco-friendly vehicles.
Why Does Commercial Electric Vehicle Insurance Cost More?
Since EVs operate differently from traditional internal combustion engine (ICE) vehicles, they do create some unique issues for business auto insurers such as:
- Costs of specialized EV parts
- Expensive car and truck batteries
- Specialized mechanics needed for service
In the current time, this means commercial electric vehicle insurance policies are a little more expensive than standard ICE business insurance polices.
That being said, as more electric vehicles are manufactured, and more parts are available, along with training of services techs - the cost of business auto insurance for EVs will eventually come down.
What Companies Offer Commercial Electric Vehicle Insurance?
There are several companies that offer EV commercial insurance. Some of the more popular companies include:
- Liberty Mutual - (844) 852-0134
- State Farm
Tesla, one of the most popular manufacturers of electric vehicles, has also started offering auto insurance for EVs, but it appears for now only under personal coverage.
However, it's important to note that currently, the company only writes polices for some of their vehicles, such as all Model S, Model X, Model 3, Model Y and Roadster owners in California.
You can read more here: Tesla Insurance.
The coverage for these vehicles is offered in California for now, with plans to expand to other states. According to Tesla, they decided to start offering insurance coverage for electric vehicles, as they have such an intimate relationship with these vehicles, as they develop and manufacture them.
What Type Of Insurance Coverage Is Available For EVs?
The basic protections that commercial electric vehicle insurance policies offer the same basic coverages that policies for conventional vehicles provide including:
- Covered auto liability coverage insures your legal obligations that arise from an accident, including lawsuits and their associated costs. The limits you purchase should be high enough to handle the potentially serious injuries and loss of earnings a victim may sustain.
- Uninsured and underinsured motorists coverages protect you when you are involved in an accident caused by a driver who has no insurance or insurance with relatively low limits. The limits you select for this coverage should be the same as your liability limits.
- Physical damage coverage on vehicles directly protects your assets. Comprehensive, Specific Causes of Loss and Collision are the coverage options available. Deductibles should be as high as you can comfortably absorb to maximize the protection provided relative to the premium cost.
- Medical payments coverage and towing expense costs for private passenger vehicles are other optional coverages to consider.
To find out more about what specialized coverages might be available for commercial EVs, speak with an agent that specializes in commercial auto insurance.
What Are The Minimum Commercial Electric Vehicle Insurance Requirements?
Find your state below to see what the minimums are for EVs:
Do keep in mind business EV auto insurance limits are usually required to be higher than the state minimums listed below - either by state or federal regulations - or by contract.
|State||Minimum Required Auto Insurance Limits|
What Does Commercial Electric Vehicle Insurance Cover & Pay For?
Commercial electric vehicles may be subject to lawsuits for a variety of reasons, including accidents, property damage, and personal injury claims. Insurance can help protect these vehicles and their owners by covering the costs associated with legal claims.
Here are a few examples of situations where a commercial electric vehicle might be sued, and how insurance can help:
- Accidents: If a commercial electric vehicle is involved in an accident, the driver or the owner of the vehicle may be sued for damages. Insurance can help cover the costs of legal defense, settlements, or judgments that may result from the lawsuit.
- Property damage: If a commercial electric vehicle damages someone's property, the owner of the vehicle may be sued for the cost of repairs. Insurance can help cover the costs of legal defense, settlements, or judgments that may result from the lawsuit.
- Personal injury: If someone is injured as a result of a commercial electric vehicle, the owner of the vehicle may be sued for medical expenses, lost wages, and pain and suffering. Insurance can help cover the costs of legal defense, settlements, or judgments that may result from the lawsuit.
For example, let's say a delivery truck owned by a company is involved in an accident, and the driver of the other vehicle is injured. The injured driver files a lawsuit against the company that owns the delivery truck, seeking compensation for medical expenses and lost wages. The company's commercial vehicle insurance policy can help cover the costs of legal defense, settlements, or judgments that may result from the lawsuit.
Similarly, if a commercial electric vehicle causes damage to someone's property, the owner of the vehicle may be sued for the cost of repairs. The owner's insurance policy can help cover the costs of legal defense, settlements, or judgments that may result from the lawsuit.
In summary, commercial electric vehicle insurance can help protect vehicle owners from the financial consequences of lawsuits arising from accidents, property damage, or personal injury claims. By having insurance in place, owners can focus on their business operations while leaving the legal defense and settlement process to the insurance provider.
Commercial Electric Vehicle Insurance - The Bottom Line
There is no doubt that EVs will become more and more popular as they offer an environmentally friendlier way to drive, quieter engines and less carbon dioxide pollution.
To find out more about the specific types of commercial electric vehicle insurance coverages you'll need, and how much coverage you should carry and the related premium costs, consult with a reputable broker that is experienced in commercial business auto insurance.
Additional Resources For Small Business Insurance
Protect your company and employees with the right commercial insurance policies. Read informative articles on small business insurance coverages - and how they can help shield your company from legal liabilities.
- Small Business
- Business General Liability
- Business Interruption
- Business Liability
- Business Owners Policy (BOP)
- Certificate of Insurance
- Commercial Auto
- Commercial Crime
- Commercial Package Policy
- Commercial Property
- Commercial Umbrella
- Comprehensive General Liability
- Cyber Liability
- Directors and Officers Liability
- Employment Practices Liability
- Event Cancellation
- Fiduciary Liability
- General Liability
- Home Based Business
- Independent Contractor
- Liability Insurance Certificate
- Liability Insurance
- Ocean Marine
- Professional Liability
- Specialty Directors And Officers Liability
- Specialty Errors And Omissions
- Specialty Excess
Businesses need commercial insurance to protect their assets, employees, and customers. It helps to cover the costs of potential accidents, lawsuits, and other unforeseen events that can result in financial loss.
For example, if a customer slips and falls on a wet floor in a store, the business could be held liable for their injuries. Commercial insurance can help cover the costs of medical bills and legal fees associated with the incident.
Additionally, businesses often have valuable equipment and inventory that need to be protected from theft or damage. Commercial insurance can provide coverage for these items in the event of a disaster, such as a fire or natural disaster.
Furthermore, businesses often have employees that can be injured on the job. Workers compensation insurance can provide coverage for medical bills and lost wages for injured employees.
Overall, commercial insurance is a necessary tool for businesses to protect their assets, employees, and customers. Without it, businesses could face significant financial loss in the event of an unexpected occurrence.