Commercial Auto Insurance in Alabama

Hicks & Associates Insurance Market provides commercial auto insurance solutions to businesses across Alabama, Florida, Georgia, Mississippi, and Tennessee.

Get a Quote for Commercial Auto Insurance in Alabama


What is Commercial Auto Insurance?

Commercial Auto Insurance is specifically designed to protect businesses that rely on vehicles for their operations. Whether you have a single delivery van or a fleet of trucks, having the right Commercial Auto Insurance policy may safeguard your company’s finances in the event of an accident.

Do Businesses Need Commercial Auto Insurance in Alabama?

While Commercial Auto Insurance is not mandatory in Alabama for all businesses that utilize vehicles, it’s strongly recommended. Here’s why:

  • Financial Protection: Accidents happen, and even a minor fender bender may result in significant repair costs and potential liability claims. Commercial Auto Insurance may help cover these expenses, protecting your business from financial setbacks.
  • Vehicle repairs: Whether your business vehicle is involved in a minor fender bender or a major collision, the repairs may be costly. Commercial Auto Insurance may help cover the costs to get your vehicle back on the road, minimizing downtime and lost productivity for your business.
  • Medical bills: If someone is injured in an accident caused by your business vehicle, you could be held liable for their medical expenses. Commercial Auto Insurance may help cover these costs, preventing your business from facing a significant financial burden.
  • Legal fees: In the event of a lawsuit arising from an accident, legal fees may quickly add up. Commercial Auto Insurance may provide coverage for legal defense costs, helping you protect your business assets.
  • Compliance with the Law: In Alabama, having Commercial Auto Insurance is required by law for most business vehicles. Operating a vehicle without the proper insurance could result in financial penalties and leave your business exposed in the event of an accident.
  • Peace of Mind: Knowing your business vehicles are insured provides peace of mind, allowing you to focus on running your business without worrying about the financial consequences of an accident.
Commercial Auto Insurance Alabama

Get a Quote

Share your details with us, and we’ll craft a personalized quote tailored to your needs.


Commercial Auto Insurance Alabama

What Does Commercial Auto Insurance in Alabama Typically Cover?

Commercial Auto Insurance policies generally include several types of coverage tailored to the needs of businesses:

  • Liability Coverage: This may cover bodily injury and property damage caused to others in an accident your business vehicle is responsible for. In Alabama, all Commercial Auto Insurance policies are required to have minimum liability limits of $25,000 per person/$50,000 per accident for bodily injury and $25,000 per accident for property damage (written as 25/50/25). However, depending on the type of vehicles you operate and the level of risk associated with your business, you may want to consider purchasing higher liability limits.
  • Comprehensive Coverage: This may cover damage to your vehicle caused by events other than collisions, such as theft, vandalism, fire, or weather events. Comprehensive coverage may provide valuable peace of mind, knowing your vehicles are protected against a wider range of potential threats.
  • Collision Coverage: This may cover damage to your own vehicle if it collides with another object. This may be a valuable coverage option, especially for expensive vehicles used for business purposes.
  • Medical Payments Coverage: May cover medical expenses for you and your passengers resulting from a vehicle accident, regardless of who is at fault.
  • Uninsured/Underinsured Motorist Coverage: This may provide coverage for injuries or damages sustained by you or your employees in an accident caused by a driver with no insurance or inadequate insurance. Uninsured motorist coverage may be crucial in Alabama, where a significant percentage of drivers may be uninsured or underinsured.
  • Hired and Non-Owned Auto Insurance: May cover vehicles that your business uses but does not own, such as rented or employee-owned vehicles used for business purposes.
  • Cargo Coverage: May protect against loss or damage to goods being transported by your business vehicles.

What are the Additional Coverages to Consider for Your Commercial Auto Insurance in Alabama?

Depending on the specific nature of your business operation and the type of vehicles you use, you may want to consider additional coverages for a more comprehensive risk management approach:

  • Motor Truck Cargo Insurance: This may cover the value of the goods or merchandise you transport in your commercial vehicles in the event of an accident, theft, or fire.
  • Uninsured/Underinsured Motorist Coverage: This may provide coverage if you are in an accident caused by a driver with no insurance or inadequate insurance to cover your damages.
  • Non-Owned and Hired Auto Coverage: This may provide coverage for liability if you rent vehicles or use employee-owned vehicles for business purposes.
  • Hired and Non-Owned Auto (HNOA) Coverage: This is an optional coverage that may be added to a Commercial Auto Insurance policy. HNOA coverage may provide protection if your employees use their own vehicles for business purposes or if you rent vehicles for short-term business needs.

The cost of Commercial Auto Insurance in Alabama varies depending on several factors, including:

  • The type of vehicles you operate: Larger trucks, specialized vehicles, and vehicles used for high-risk activities will typically have higher premiums than smaller cars or vans.
  • The number of vehicles you own: The more vehicles you have, the higher your premium is likely to be.
  • The annual mileage your vehicles travel: Businesses with vehicles that travel a high number of miles each year may pay more for insurance.
  • Your driving record: A history of accidents or traffic violations may significantly increase your premium.
  • The driving record of your employees: A history of accidents or traffic violations among your drivers may significantly impact your premium costs. Implementing a safe driving program for employees may help mitigate this risk.
  • The type and amount of coverage you choose: The specific coverages you select and the limits of liability will affect your premium cost.
  • Your claims history: A history of prior claims may result in higher premiums.
Hicks & Associates Insurance Market

How Can Your Alabama Business Get a Commercial Auto Insurance Quote?

At Hicks & Associates Insurance Market, we understand that keeping your Alabama business moving forward is crucial. Commercial Auto Insurance is a vital tool for protecting your investment in vehicles, safeguarding your employees, and ensuring your business continuity in the event of an accident.

Reach out to one of our knowledgeable agents at Hicks & Associates Insurance for a quick Commercial Auto quote. We are committed to delivering exceptional service and supporting the success of Alabama businesses.

Contact Us

Get a fast quote or answers to your questions. Message us today!

Send us a Message!