Commercial Auto Insurance
How Do Commercial Auto Deductibles Work for Contractors?
Your deductible is the amount you pay out-of-pocket before insurance pays on a collision or comprehensive claim. Liability claims typically have no deductible.
How do commercial auto deductibles work?
Commercial auto deductibles apply to physical damage coverage — collision (accidents you cause) and comprehensive (theft, weather, vandalism). When you file a claim, you pay the deductible and your insurer pays the rest up to your coverage limit.
Common deductibles range from $500 to $5,000. Higher deductibles lower your premium. Many contractors with newer trucks choose $1,000 deductibles — balancing premium savings against manageable out-of-pocket exposure.
Liability coverage (bodily injury and property damage to others) has no deductible — your insurer pays from dollar one. This is the coverage that protects you when you’re at fault in an accident.
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