Step 1: Determine the total number of vehicles in your fleet.
This includes all vehicles that are used for business purposes, including cars, trucks, vans, and buses.
Step 2: Calculate the total number of miles driven by your fleet in the past year.
This information can be found from your odometer readings or your fuel records.
Step 3: Determine the average number of miles driven per vehicle in your fleet.
To do this, divide the total number of miles driven by the total number of vehicles in your fleet.
Step 4: Multiply the average number of miles driven per vehicle by the composite rate for your state.
The composite rate is a per-mile charge that is based on the type of vehicle and the average number of miles driven. You can find the composite rate for your state by visiting the website of your state's insurance regulator.
Step 5: Add any additional charges to the total premium.
These charges may include fees for drivers under the age of 25, drivers with a history of accidents or violations, and vehicles that are used for high-risk activities.
The total premium for your commercial auto insurance will be the sum of the composite rate and any additional charges.
Example
Let's say you have a fleet of 10 vehicles that are driven an average of 10,000 miles per year. The composite rate for your state is $1.50 per mile.
* Total miles driven: 10 vehicles x 10,000 miles = 100,000 miles
* Average miles driven per vehicle: 100,000 miles / 10 vehicles = 10,000 miles
* Composite rate premium: 10,000 miles x $1.50 per mile = $15,000
If you have no additional charges, then your total premium for commercial auto insurance will be $15,000.
