Commercial Auto Insurance in Colorado

Colorado’s business landscape is as diverse as its iconic scenery. With over 600,000 small businesses operating across the state, many require commercial auto insurance to help cover their vehicles during business-related trips. If you’re among the state’s blossoming entrepreneurial community, understanding Colorado commercial auto insurance is key to putting yourself in a stable financial situation. This guide will walk you through the essentials of commercial auto insurance in the state, from who needs it to how to get it, and why Infinity Insurance Agency, Inc. is your go-to source for coverage.

What is commercial auto insurance and why is it important?

Commercial auto insurance is designed to cover vehicles used for business purposes. Unlike personal auto insurance which typically only covers vehicles used for personal trips, commercial auto insurance can extend coverage to vehicles like delivery trucks, service vans, and cars used for business-related purposes.

This type of insurance is important for several reasons. Firstly, it can help cover a business vehicle when involved in an accident where damage is caused. Secondly, it can cover bodily injury to another person or property damage to another’s vehicle or property if your business is at fault for an accident. Thirdly, many states require business vehicles to have a certain level of auto insurance, so it’s critical to have a policy to meet legal requirements.  

Getting a commercial auto insurance policy involves working with an insurance agent who can help you assess your specific needs. The process typically starts with evaluating the types of vehicles you use, how they’re used, and the risks associated with your business operations. From there, you can choose a policy that helps provide the right balance of coverage and cost.

Who needs commercial auto insurance in Colorado?

In Colorado, various types of businesses may need commercial auto insurance to help cover their vehicles. Here’s a look at some common industries where commercial auto insurance may be needed:

• Couriers: People who deliver packages or goods for a living may need insurance to cover the specific risks associated with frequent transportation. Commercial insurance policies can help cover costs associated with potential liability for accidents that couriers may face.  
• Construction: Commercial insurance coverage can be necessary for construction companies that subject their vehicles to hazardous conditions.  
• Food trucks: With frequent travel and potentially high-value equipment inside, food trucks may need insurance that can cover their valuable vehicles. 
• Contractors: Whether you’re a general contractor or a specialist such as an electrician or plumber, your work often involves traveling between job sites with tools and supplies. Commercial auto insurance can help pay for damages to a contractor’s vehicle in covered situations.  
• Carpenters: Carpenters and painters often need cars to transport their tools or finished projects. Commercial auto insurance may be important for artistic workers who use their vehicles for frequent trips.  
• Landscapers: Landscaping businesses use trucks to haul plants, soil, and equipment to various job sites, and commercial insurance can help cover these trucks if they receive damage during a covered accident.    
• HVAC technicians: HVAC technicians often drive company vehicles to service and repair heating and cooling systems. Commercial auto insurance is essential for these technicians to help cover damage to the vehicle or the company’s liability for accidents.  

Commercial auto insurance requirements in Colorado

There are specific Colorado vehicle insurance requirements for business-affiliated automobiles. Here’s a breakdown of the minimum liability coverage required:

• $25,000 bodily injury liability for each person injured in an accident
• $50,000 per accident for bodily injury liability
• $15,000 for all property damage liability

These requirements can help you pay for damages to manage the financial impacts of an accident. Additionally, vehicles that are registered with a USDOT or MC number and travel across state lines require different coverage needs by law. The Federal Motor Carrier Safety Administration generally requires a minimum combined single limit of $750,000 for large vehicles such as semi-trucks. This higher limit reflects the greater risk and potential for higher damages associated with large, interstate trucking operations.

For certain business operations like movers or towing companies, minimum limit requirements may be higher. If you have this type of business, you can call Infinity Insurance Agency, Inc. for a personalized quote.  

How much does commercial auto insurance cost in Colorado?

The cost of commercial auto insurance in Colorado can vary based on several factors. Understanding these factors can help you manage your insurance costs effectively:

• Vehicle type: The make, model, size, and use of your vehicle can impact insurance rates. Specialized vehicles or those with potentially larger repair costs may experience higher premiums.
• Business use: How your vehicle is used—whether for local deliveries, long-distance travel, or transporting high-value equipment—affects your insurance needs and costs.
• Driving history: A clean driving record generally results in lower premiums. Businesses with drivers that have a history of accidents or traffic violations may face higher costs.
• Coverage needs: The amount of coverage you choose directly impacts your premium. Policyholders with the Colorado state minimum will have less coverage but lower costs than policyholders with additional coverage.
• Profession: Policies may also change based on the industry. Businesses with workers who regularly carry expensive tools to their worksites may have to pay more for their insurance versus industries that don’t require costly materials.  

To potentially reduce your insurance costs, look for available discounts. Many insurers offer discounts for things like paying your premium in full, having a safe driving record, or bundling multiple types of insurance with the same provider.