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Compare commercial car insurance for contractors and construction companies

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Find coverage for a variety of companies and vehicles.

As a contractor or owner of a construction company, you may need coverage for a variety of vehicles and situations. The amount of coverage as well the vehicle type and weight will largely determine your premium.

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What kinds of contractors need commercial car insurance?

Because contractors often travel and haul equipment, they’ll need commercial car insurance. Examples of types construction companies include:

  • Excavation
  • Home improvement
  • Remodeling
  • Home building
  • Land clearing
  • Tree trimming and removal
  • Sprinkler installation
  • Fencing and decks
  • Stone and granite work
  • Roofing
  • Windows and siding
  • Asphalt laying
  • Welding
  • Concrete laying
  • Parking lot construction

What car insurance coverage do I need as a contractor or construction company?

Contractors need the same basic coverage as other everyday vehicles. Businesses should at least have liability coverage. However, other standard policies can greatly benefit the company during an accident.

  • Liability. Cover damage and personal injury expenses for another driver when your company is at fault in an accident.
  • Collision. Pay for your own vehicle damages after a collision. With some insurance companies, this may also include permanently attached equipment, such as bolted tool boxes or ladder racks.
  • Medical payments or personal injury. Protect yourself and your employees from costly medical bills that exceed a health insurance policy.
  • Uninsured/underinsured motorists. Get damage expenses covered when the other driver doesn’t have enough coverage for your needs.
  • Comprehensive. Pay for expenses related to non-collision accidents, such as theft, fire or weather damage. You could also find coverage for one or two specific non-collision accidents to save money.
  • Equipment insurance. You can’t work without your construction equipment. Get coverage for damages and theft while traveling to and working at a temporary site.

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What additional coverage should I consider?

As a contractor, you need your vehicles to stay up and running. Consider extra protection to help make sure that happens:

  • Roadside assistance. Pay expenses for minor repairs on the road so you can get back to work quickly. This will often cover tow truck expenses within a certain distance as well.
  • New vehicle replacement. Get the value of the vehicle paid back to you if you’re involved in a total loss accident.
  • Rental reimbursement. Gain peace of mind about getting a rental when your vehicle is out of commission. This coverage will pay for rental expenses.
  • Loan or lease gap. After a total loss accident, you may still owe money on your loan or lease. Pay off the amount, even if it exceeds the vehicle’s value.
  • Loss of income. Cover lost revenue that’s related to a construction vehicle accident.
  • Non-owned automobile. Get liability coverage for employees who use personal vehicles for business purposes.
  • Loading and unloading. Cover damages and personal injuries when moving equipment to or from a work site.
  • Motor truck cargo. If hauling equipment and materials on a heavy-duty truck, cover the value of the cargo on board.
  • Trailer insurance. Cover physical damages to a trailer you use often in your business.
  • Fleet owner package. Own multiple construction vehicles? You may be eligible for a discounted fleet owner package. These often include risk assessments to keep you and your employees safe.

What situations am I covered for?

Construction companies may have unique situations they need protection from. Those include:

  • Construction zone damages. Your business vehicles could get damaged by trimmed tree branches, loose gravel and equipment during moves. Address these situations with comprehensive coverage.
  • Trailer damages. Hauling equipment or building materials? Protect the valuable trailers you use in the process.
  • Damages to client property. Accidents are bound to happen when driving heavy-duty vehicles around a client’s home or commercial property. Get coverage for any damages your company incurs.
  • Non-owned cargo damage. Cover client-owned property like home improvement materials, furniture and granite work from damages or theft while in transit.
  • Equipment, permanent and temporary. Your vehicles may come with permanently attached equipment, such as concrete trucks. Cover that and any equipment you may need to move in your vehicles between work sites.

How much is car insurance for contractors and construction companies?

Construction companies use a variety of vehicles and equipment to get the job done. Your premium will vary, depending on several factors:

  • Coverage. You can lower your premium by opting for minimal coverage or a lower deductible. However, to make sure you have adequate protection, a lower deductible is recommended if you need to save money.
  • Vehicle type. Insurance companies will assess what the vehicle is built to do as well as its make and model.
  • Vehicle weight. The heavier the vehicle, the more expensive it is to insure. That’s because these vehicles often cause more damage and cost more to repair after an accident.
  • Location. Areas with above-average accident risk will increase your premium. This may also include the areas you typically service. In general, large cities are considered an increased risk.
  • Equipment. Cargo trucks and vans used to carry heavy equipment may increase your premium. The equipment may cause more physical damage and injuries during an accident.

Bottom line

A variety of factors influence insurance rates for a construction vehicle. Generally, vehicle size, type and coverage needs will have the biggest effect on your premium.

Compare commercial car insurance providers to find the best choice for your company.

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Sarah George

Sarah George is a writer dedicated to unraveling complicated topics, including medical journalism, philosophy and finance. She loves breaking down the tough stuff into simple terms that everyone can understand. In her free time, Sarah's usually sipping hot tea and talking through movie plots with her husband.

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