New or Current Resident of Burlingame, CA? Let Commercial One Insurance Service Be At Your Service
We offer many insurance options that will make your life easier. We invite you to learn more about us. We provide professional service and can make the chore of acquiring insurance a pleasure.
Chances are you’ve worked hard for your CDL- Commercial Drivers License. Your CDL is definitely not something you want to add to your insurance policy that will cost you more. Your CDL distinction does not always mean that your car insurance will go up or change in some other way. As it is with most things that are insurance related – it all depends on your individual situation. Come in and speak with us today.
Unfortunately, you do not get a decreased insurance rate due to your advanced driving distinction. You may qualify for defensive driving credit however because of your professional status. You should tell your agent about the difference as soon as you get it so they can figure out how it will affect your insurance.
Your auto insurance doesn’t need to change if you have insurance through your job and only use your own car for personal reasons.
Some drivers use their personal vehicle for commercial use. An honest conversation with your insurer will alleviate the anxiety caused by this risky behavior. What kind of business you have, how often you use your personal car for work-related activities, and how much insurance your boss has for you are the things that determine
As a commercial driver your auto insurance can get complicated. Many drivers wonder – does having a Commercial Driver’s License (CDL) lower your car insurance rates? The answer isn’t straightforward. While a CDL demonstrates advanced skills it can also increase your risk category.
In this article, we’ll break down how CDLs impact car insurance, including potential pros and cons. We’ll also provide tips to find the best coverage Let’s dive in!
How CDLs Influence Car Insurance Rates
CDLs don’t automatically lower or raise rates. But they can positively or negatively impact some key factors that determine your premiums:
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Driving record – CDL holders log more miles. More time on the road means more chances for violations. Moving violations raise rates.
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Experience – Extensive driving experience can lower premiums. But it depends on maintaining a clean record.
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Risk – Insurers may view CDL holders as higher-risk. More miles driven equals increased accident exposure.
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Vehicle use – Personal versus commercial use affects rates Premiums are higher if you use your car for work
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Coverage limits – CDL holders often opt for higher limits, which raises costs. But lower limits increase out-of-pocket risk.
As you can see, CDLs indirectly influence rates through multiple variables. The impact depends on your specific situation.
Factors That Determine Car Insurance Rates for CDL Holders
Insurance companies weigh several key factors when setting rates for CDL holders:
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CDL class – Class A CDLs for semi-trucks have the most impact. Class B for heavy straight trucks less so.
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Frequency of CDL use – Using your CDL daily affects rates more than occasional use.
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At-fault accidents – CDL holders with recent accidents pay the highest premiums.
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Major violations – DUI, reckless driving, or excessive speeding can skyrocket rates.
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Personal versus commercial auto policy – Commercial policies cost more due to higher limits.
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Credit-based insurance scores – Just like regular drivers, poor scores increase your premiums.
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Driving experience – Extensive experience can potentially lower your rates.
Knowing these factors allows you to make choices that may decrease your costs. For example, maintaining a clean driving record.
Do CDLs Ever Lower Car Insurance Rates?
It’s possible – but not guaranteed – for a CDL to lower your car insurance costs:
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CDL training discounts – Some insurers offer discounts for completing CDL certification courses.
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Good driver discounts – CDL holders with clean records may qualify for good driver price breaks.
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Prior insurance discounts – Maintaining continuous insurance coverage can earn discounts.
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Low mileage discounts – If you drive fewer than a specified number of miles per year.
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Multi-policy discounts – Bundling auto with homeowners or renters insurance saves money.
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Accident forgiveness – Waives rate hikes from your first minor accident if you have a clean record.
The key is finding an insurer that offers CDL-friendly discounts and comparing quotes. But having a CDL doesn’t guarantee lower rates.
Potential Drawbacks of a CDL for Car Insurance
There are a few potential downsides to having a CDL when it comes to auto insurance:
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Higher base rates – Some insurers classify CDLs as “high risk,” hiking base premiums.
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Surcharges for violations – Tickets or accidents can mean steep rate hikes with a CDL.
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Limited personal use – CDL policies may restrict non-commercial use for your vehicle.
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Underwriting challenges – Not all carriers write policies for CDL holders. Limited competition can increase costs.
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Policy limitations – Consumer-focused auto policies may exclude CDL holders altogether.
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Claim scrutiny – Insurers heavily investigate CDL-related accident claims which can delay payouts.
The bottom line is having a CDL can make finding affordable coverage more difficult in some cases.
Tips for CDL Holders Shopping for Car Insurance
If you hold a CDL, keep these tips in mind when looking for the best auto insurance rates:
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Compare quotes from carriers familiar with CDLs like Geico, Progressive, State Farm, and Owner’s Plan.
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Ask about discounts for CDL certification, good driving, low mileage, and prior insurance.
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Inquire about accident forgiveness to avoid rate hikes from minor collisions.
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Choose higher deductibles to lower premiums if you can afford out-of-pocket costs.
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Ask about restrictions for personal use if you only occasionally drive for work.
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Bundle auto with homeowners or renters for multi-policy discounts.
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Maintain continuous insurance and a clean driving record to minimize rate increases.
Finding competitive CDL car insurance rates takes a little extra effort. But with diligent comparison shopping, you can potentially save hundreds per year.
Does a CDL Driver Need a Commercial Auto Policy?
If you use your personal vehicle for extensive commercial driving, a commercial auto policy is a smart idea. Here are some benefits that commercial policies offer:
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Higher liability limits to protect your assets if you cause an accident.
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Coverage for transporting goods, materials, or equipment.
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Ability to list multiple drivers.
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Coverage for specialized equipment like liftgates.
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Protection for physical damage to your vehicle.
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Motor truck cargo or trailer interchange coverage.
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Ability to list your employer as an additional insured.
Just be aware that commercial auto insurance costs significantly more than a standard personal policy.
Wrap Up
Having a CDL can make shopping for car insurance tricky – rates might go up or down. But focusing on a squeaky clean driving record, shopping around for discounts, and comparing quotes helps CDL holders find affordable coverage. Remember to also consider your vehicle usage when choosing between personal and commercial policies. With a little extra diligence, you can navigate the complexities of insuring your car as a commercial driver.
Get a quote now Please select the LOB
New or Current Resident of Burlingame, CA? Let Commercial One Insurance Service Be At Your Service
We offer many insurance options that will make your life easier. We invite you to learn more about us. We provide professional service and can make the chore of acquiring insurance a pleasure.
Be Proud of Your CDL
Chances are you’ve worked hard for your CDL- Commercial Drivers License. Your CDL is definitely not something you want to add to your insurance policy that will cost you more. Your CDL distinction does not always mean that your car insurance will go up or change in some other way. As it is with most things that are insurance related – it all depends on your individual situation. Come in and speak with us today.
Unfortunately, you do not get a decreased insurance rate due to your advanced driving distinction. You may qualify for defensive driving credit however because of your professional status. You should tell your agent about the difference as soon as you get it so they can figure out how it will affect your insurance.
Your auto insurance doesn’t need to change if you have insurance through your job and only use your own car for personal reasons.
Some drivers use their personal vehicle for commercial use. An honest conversation with your insurer will alleviate the anxiety caused by this risky behavior. What kind of business you have, how often you use your personal car for work-related activities, and how much insurance your boss has for you are the things that determine
If you are in the Burlingame, CA area stop by Commercial One Insurance Service today.
How to get lower car insurance rates | 11 Ways to get cheaper car insurance
FAQ
Are trucks higher on insurance?
Why is car insurance more expensive for drivers under 21 a they drive more miles b they have more accidents c they carry more passengers?