Commercial Auto Insurance in Florida: Complete Guide for Business Owners
If your business uses vehicles, you need commercial auto insurance. This comprehensive guide covers everything Florida business owners need to know about protecting their vehicles and drivers.
What is Commercial Auto Insurance?
Commercial auto insurance covers vehicles used for business purposes including liability, physical damage, and medical payments.
Covers:
- Company-owned vehicles
- Leased vehicles
- Hired vehicles
- Employee-owned vehicles used for business
When You Need Commercial Auto Insurance
Required For:
- Vehicles titled to your business
- Vehicles with commercial plates
- Vehicles over 10,000 lbs
- Vehicles transporting goods/passengers for hire
- Vehicles with business signage
Also Need It If:
- Employees drive for business
- You rent vehicles for business
- Contractors use their vehicles for your business
Personal auto insurance doesn't cover business use.
Types of Commercial Auto Coverage
1. Liability Coverage (Required)
Bodily Injury Liability:
- Injuries to others in accidents you cause
- Medical expenses
- Lost wages
- Legal defense
Property Damage Liability:
- Damage to other vehicles
- Damage to property
- Legal defense
Florida Minimum: $10,000 PIP + $10,000 PDL
Recommended: $500,000/$1,000,000
2. Physical Damage Coverage
Collision:
- Damage to your vehicle in accidents
- Regardless of fault
Comprehensive:
- Theft
- Vandalism
- Weather damage
- Fire
- Animal strikes
Typical deductibles: $500 - $2,500
3. Medical Payments
Covers medical expenses for you and passengers, regardless of fault.
Typical limits: $5,000 - $25,000
4. Uninsured/Underinsured Motorist
Covers you when hit by driver with no/inadequate insurance.
Highly recommended in Florida (20% uninsured driver rate).
5. Hired and Non-Owned Auto
Hired Auto:
- Vehicles you rent/lease short-term
- Rental cars for business trips
Non-Owned Auto:
- Employee personal vehicles used for business
- Contractor vehicles
Essential if employees drive for work.
Commercial Auto Insurance Costs
Average Annual Premiums by Vehicle Type:
Sedans/Cars:
- Basic coverage: $1,200 - $2,000
- Full coverage: $2,000 - $3,500
Pickup Trucks:
- Basic coverage: $1,500 - $2,500
- Full coverage: $2,500 - $4,000
Cargo Vans:
- Basic coverage: $2,000 - $3,500
- Full coverage: $3,500 - $5,500
Box Trucks:
- Basic coverage: $3,000 - $5,000
- Full coverage: $5,000 - $8,000
Tractor Trailers:
- Basic coverage: $8,000 - $15,000
- Full coverage: $15,000 - $30,000+
Factors Affecting Cost:
1. Vehicle Type Larger, more expensive vehicles cost more.
2. Vehicle Value Higher value = higher premium.
3. Radius of Operation Local vs long-distance affects rates.
4. Cargo Type Hazardous materials = higher rates.
5. Driver Records Clean MVRs = lower rates.
6. Claims History Accident-free = discounts.
7. Annual Mileage More miles = higher premium.
8. Coverage Limits Higher limits = higher cost.
Coverage Limits Explained
Split Limits
Example: $100,000/$300,000/$50,000
- $100,000 per person (bodily injury)
- $300,000 per accident (bodily injury)
- $50,000 property damage
Combined Single Limit (CSL)
Example: $1,000,000 CSL
- $1M total per accident
- Applies to all damages combined
- More flexible than split limits
Recommended Minimums:
- Small businesses: $500,000 CSL
- Medium businesses: $1,000,000 CSL
- Large fleets: $2,000,000+ CSL
Special Coverage Needs
Delivery Vehicles
- Higher liability limits
- Cargo coverage
- Hired/non-owned auto
Contractors
- Tools and equipment coverage
- Hired auto coverage
- Higher liability limits
Food Trucks
- Specialized equipment coverage
- Spoilage coverage
- General liability add-on
Passenger Transport
- Higher liability requirements
- Medical payments coverage
- Commercial passenger endorsement
How to Save on Commercial Auto
1. Fleet Discounts (Save 10-25%)
Insure multiple vehicles together.
2. Safety Features (Save 5-15%)
- Anti-theft devices
- GPS tracking
- Dash cams
- Telematics
3. Driver Training (Save 5-10%)
Defensive driving courses for all drivers.
4. Increase Deductibles (Save 10-20%)
$1,000 vs $500 deductible = significant savings.
5. Bundle Policies (Save 15-25%)
Combine with general liability, property, workers' comp.
6. Maintain Clean MVRs (Save 10-20%)
Regular driver record checks.
7. Limit Personal Use (Save 5-10%)
Restrict vehicles to business use only.
8. Pay Annually (Save 5-10%)
Avoid monthly payment fees.
Driver Qualification Requirements
Minimum Requirements:
- Valid driver's license
- Clean driving record (typically 3 years)
- Age 21+ (some insurers require 25+)
- Pass MVR check
Red Flags:
- DUI/DWI
- Multiple at-fault accidents
- Suspended license
- Reckless driving
Best Practices:
- Annual MVR checks
- Written driver policy
- Regular training
- Documented vehicle inspections
What to Do After an Accident
Immediate Steps:
1. Ensure Safety Check for injuries, call 911 if needed.
2. Document Everything
- Photos of all vehicles
- Damage from multiple angles
- License plates
- Scene overview
3. Exchange Information
- Names and contact info
- Insurance details
- License numbers
- Witness information
4. Call Police Required if:
- Injuries occurred
- Damage exceeds $500
- Hit and run
5. Report to Insurer Call within 24 hours.
6. Don't Admit Fault Let insurance investigate.
Your Insurer Will:
- Assign adjuster
- Investigate accident
- Handle repairs
- Manage claims
- Provide rental (if covered)
Common Commercial Auto Mistakes
1. Using Personal Auto for Business
Problem: Claims denied.
Solution: Get commercial coverage.
2. Not Listing All Drivers
Problem: Unlisted driver in accident = denied claim.
Solution: List all potential drivers.
3. Inadequate Liability Limits
Problem: $10,000 won't cover serious accident.
Solution: Get at least $500,000 coverage.
4. No Hired/Non-Owned Coverage
Problem: Employee uses personal car, causes accident.
Solution: Add hired/non-owned auto coverage.
5. Not Updating Vehicle Values
Problem: Underinsured when vehicle totaled.
Solution: Review values annually.
Get Commercial Auto Insurance
Protect your business vehicles with comprehensive coverage. Our licensed agents will:
- Review your fleet and usage
- Recommend appropriate coverage
- Compare quotes from 50+ carriers
- Find the best rates for your business
Call (407) 557-3100 or get a free quote.
Information current as of February 2024. Requirements and rates vary by vehicle type and business use. Consult with a licensed agent for personalized advice.