Save big by letting three agents compete for your bus insurance!
How Much Does Bus Insurance Cost?
There are many kinds of buses. Big buses, small buses. Buses for business, buses for personal use. How much your insurance costs depends on the size of your bus and what it’s used for.
Insurance for church buses, scout buses, and other non-profit organizations is relatively cheap. If you own one of these vehicles and it fits less than 16 passengers, expect to pay as little as $1,000 per year. Maybe less.
On the other hand, if your bus is registered for commercial use, your insurance will be more costly. This applies to airport shuttles, tour buses, charter services, and motor coach companies. How much you pay depends on where you live. The average rate for some states can be as low as $4,000 per year. Other states, like New Jersey, can have premiums of more than $35,000 per year!
But those numbers are on opposite ends of the spectrum. The 50-state average for commercial 15-passenger bus insurance is $9420 per year.
What Determines Your Rate
Your insurance agent will ask about you and your business to determine your rate. He’s looking for certain things.
- Your location. As far as insurance goes, certain states are cheaper to live in than others. Bus operators who work in predominantly rural areas will see lower costs than those who work in urban areas.
- How far you drive. Any bus that drives over an interstate route must follow federal rules, which are typically stricter than state laws and require more coverage. They are therefore more expensive.
- The size of your bus. Buses that fit fewer than 16 passengers are classified differently than larger vehicles. Mini buses, bus limos, and small church buses regularly fit into this designation. It’s sometimes a smart idea to strip your bus of unused seats to help it qualify for one of those lower classifications.
- Your age. Insurance companies typically charge more for anyone under 25. If you’re older than that, you’re in luck. Your rate will be less expensive.
- Your driving history. The number of accidents you and your drivers have been in will be reflected in your price. Good drivers will obviously be offered a cheaper rate.
- The value of your vehicle. A large, new motorcoach is worth more money than an older mini bus. This will be reflected in your price.
- Your business type. Different businesses face different dangers. A charter service is very different from a party bus service. A tour bus and an airport shuttle cover different areas. There are different risks associated with transporting children versus transporting the elderly. Typically common carriers and school buses are more expensive to insure than private shuttles and personal vehicles.
The average cost of bus insurance coverages
A big way your bus insurance price is calculated is based on which coverages you get. Here we’ve given the average price of different coverages. On one end of the spectrum is insurance for private organizations like churches, scout troops, and bingo parlors with small 15-passenger buses. On the other end of the spectrum is the price for commercial charter services with big motorcoaches.
| Coverage | Average Cost |
| Primary Liability | $1000-25000 |
| Physical Damage | $750-5000 |
| Umbrella Policy | $500-3500 |
| Medical Payments | $500-10000 |
| Workers’ Comp | $1000-3000 |
How to Get A Cheaper Bus Insurance Policy
Comparison shop
Insurance companies want your business and they’ll fight for it. It’s smart to pit insurance agents against one another to compete for your policy. This way they offer you better coverage at a better price. We make this part simple. Fill out one free form and we’ll connect you with three bus insurance agents who will fight for your policy. Get started now!
Hire experienced drivers with clean driving records
Insurance companies are curious about your drivers. Do they have clean records? Do they have CDL experience? Have they ever been convicted of a crime? It’s important that you vet your drivers thoroughly ahead of time, so that you don’t hire on one who will make your insurance policy more expensive.
Pay a higher deposit up front
There are many ways to pay your premium. You can choose to pay month-to-month, but that isn’t the most affordable option. It’s cheapest to pay as much as you can at the beginning of the year. Insurance companies will give you a better deal if you do. Sometimes this can amount to as much as 20% of your overall price!
Maintain a good credit score
Insurance companies like business with good credit. It shows them that you will pay them on time. A good credit score will lead to lower costs.
Bundle your coverages
If you own a fleet of vehicles, insure them under one policy. If you require general liability insurance, bundle it with your auto liability insurance. If you need things like workers compensation and medical payments insurance, throw that in too. Insurance agencies can offer you discounts if you go through them for all your coverages.
Why Is Bus Insurance So Expensive
Compared to other types of commercial transportation, bus insurance doesn’t come cheap. And that makes sense. After all, you’re transporting very precious cargo. Your insurance policy will require things that other insurance policies don’t necessitate. This is mostly manifested in the form of medical payments insurance. If your passengers are hurt en route, this coverage will pay for their medical bills. Luckily, buses get into fewer accidents on average than most other vehicles on the road. And the best insurance is the insurance you never have to use.
