How new vehicles may impact your commercial fleet insurance

When you shop for a vehicle for your company, you probably weigh the pros and cons of features and price. Make sure you also consider how a new vehicle impacts your commercial auto insurance policy.

Things to understand about the cost of fleet insurance before you buy your next company car or truck:

• The more expensive the vehicle, the higher the premiums. Buying used vehicles can help keep your insurance rates down.
• Passenger vehicles typically cost less to insure than commercial trucks.
• Lighter-weight trucks cost less to insure on a commercial fleet policy.

Here’s how the truck classes break down:

• Light trucks, up to 10,000 pounds. Panel vans, pick-ups, parcel vans, refrigerated trucks and flatbed trucks.
• Medium trucks, 10,001 to 20,000 pounds. Mid-size refrigerated trucks, stake bed and box trucks.
• Heavy duty and extra heavy duty trucks, 20,001 to 45,000 + pounds. Beverage trucks, farm trucks and grain trucks.

The trailer class includes:

• Small service or utility trailers, flatbed trailers, refrigerated and specialty trailers. Commercial truck insurance premiums increase proportionately with the size and weight of the trailer.
• The intended use of the vehicle also impacts the cost of commercial fleet insurance. Service-oriented vehicles, such as a plumbing truck or a van used by an HVAC contractor, are the least expensive to insure. Retail-use vehicles are next, such as florist or dry cleaning vans. Finally, trucks and vans that deliver goods to other businesses cost the most to insure.