In California – the sun state – as well as in other states and other countries, commercial vehicle insurance is a significant part of the product spectre most insurance companies offers. For most of us ordinary drivers with our personal cars and other private vehicles like motorbikes, leisure boats and recreational vehicles doesn’t offer much attention to the fact that lots of people are actually using their vehicles for a living.  If you drive a commercial vehicle (big rig, delivery truck, bus, etc.) in California you should be aware there are certain legal requirements for vehicle insurance that you must maintain.  Because commercial vehicles can often carry hazardous materials or precious cargo (such as our children) the insurance requirements for them are much higher than traditional automobile coverage.

Not all insurance companies offer commercial vehicle insurance.  Some companies that specialize in auto coverage have a separate division that handles heavy vehicle insurance underwriting.  Many times you can consult with your agent who can inform you of their coverage availability or refer you to another insurer who may be able to handle your commercial needs.

Some of the requirements for getting coverage of these larger vehicles can include specialized driver training requirements as defined by the state of CA.  Often drivers must have a special endorsement or license to drive such vehicles.  Regular inspections are usually mandatory for such vehicles as well to help maintain safety on the road.  It is not uncommon to see random inspection points setup across the state to do spot checks of commercial trucks and other vehicles.

If you have any questions about the availability of coverage or the minimum requirements necessary you should contact the state department of motor vehicles who will explain detailed coverage requirements based on the type of vehicle and for what purpose it will be used for.

Some Georgia statistics
The average auto insurance expenditure for 2003 was $758.69 per year. When compared to the rest of the United States this is very affordable. Georgia ranks right in the middle as number 25 in the contest for the most expensive car insurance. The number one position belongs to New Jersey with average expenditures of almost $1,200 per year. In cities like Detroit and New York the averages are much higher and range from $3,000 to $5,000.

Although Georgia is considered affordable there are still many ways to decrease your monthly auto insurance bill.
As any business insurance companies have costs and can only budge so much on what kind of price they can offer. 65% of the premium that you pay goes straight to claim payouts. This leaves only 35% for overhead and profit. Overhead and taxes account for 25% of your premium which leaves 10% profit. (2004 Insurance Information Institute) 10% profit however leaves plenty of room for an individual to compare quotes and shop around for a good deal and find it.

How to pay only for what you need
First and foremost do not insure yourself for damages that you can afford to pay. Insurance is wisely used only to cover damages that cannot be paid for out of your own pocket. For instance compare what higher deductibles would save you compared paying one in the case of an accident. Think about what your driving record has been like in the past three years and make a good guess as to what your record will be like in the future three years. Is it likely to change?

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