Commercial Auto Insurance
How Does Radius of Operation Affect Commercial Auto Rates?
Radius of operation tells your insurer how far your vehicles typically travel. Local radius (under 50 miles) is rated more favorably than long-haul or interstate operation.
How does radius of operation affect my commercial auto insurance?
Most contractor commercial auto policies ask for your typical radius of operation — local (0–50 miles), intermediate (51–200 miles), or long-haul (200+ miles). This affects your rate because exposure increases with distance traveled.
Most contractors fall into the local or intermediate category — operating within a regional service area. Accurately reporting your radius ensures you’re rated correctly. Understating radius to save money is a form of misrepresentation that can void coverage.
If your operations expand — say, you start taking jobs in a broader region — notify your insurer. A mid-policy radius adjustment is minor; an uncovered claim because you misrepresented your operation is not.
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