Does Having a CDL Lower Your Car Insurance Rates?

Obtaining a commercial driver’s license (CDL) requires rigorous training, testing, and demonstrating responsible driving skills. So it would make sense that having a CDL would lower your personal auto insurance rates, right? Unfortunately, that’s not necessarily the case.

While a clean driving record and professional driver status can positively impact car insurance costs in some cases, simply having a CDL does not guarantee you lower premiums.

This article will explore how car insurance companies view CDL holders, what factors impact your rates, and ways to get discounts as a commercial driver.

Do CDLs Lower Auto Insurance Rates?

In general, having a CDL on its own does not directly lower your personal car insurance costs with most insurance companies.

There are a few key reasons for this:

• Personal vs. commercial auto insurance – Your CDL only applies to operating commercial vehicles. It does not have a direct impact on risk factors that determine your personal auto policy rates, like your driving record, vehicle type, credit score, and other factors.

• Varying state regulations – Laws regarding how insurance companies can use your CDL status vary in each state. Some states prohibit using a CDL for risk-rating, while others allow it. This creates inconsistencies nationwide.

• Individual insurance company guidelines – Each insurer has its own guidelines for how different variables like CDL status influence your rates. Many don’t consider your CDL when calculating your personal auto premium.

So while the advanced training and skills required to get a CDL could imply lower risk, insurance companies simply don’t correlate CDL status with decreased chances of accidents the way you might expect.

When Can Having a CDL Lead to Lower Rates?

The main way your CDL can lower your personal car insurance premium is if you maintain a clean driving record over a long period. Avoiding traffic violations, accidents, and claims as a professional driver may qualify you for a safe driver discount with some insurers.

Here are some scenarios where having a CDL could contribute to lower insurance rates:

• You’ve held your CDL for many years with a perfect driving history. This may make you eligible for a safe driver discount of up to 30% with select insurers.

• You take advanced defensive driving courses to maintain your CDL status. Completing extra training may qualify you for a discount.

• You use your personal vehicle minimally. Driving fewer miles can qualify you for lower mileage discounts.

• You bundle commercial policies with a personal policy. Having multiple policies with one insurer may score you a multi-policy discount.

However, you’ll need to ask insurers directly about discounts related to your CDL to see if you actually qualify. Don’t assume a CDL alone will automatically reduce your costs.

Why Don’t CDLs Directly Lower Personal Insurance Rates?

It’s understandable to think that having a CDL would equate to lower car insurance simply because of the intensive training and skill required to obtain one. However, actuarial data that insurance companies rely on to set rates doesn’t support this assumption.

There are some key reasons why CDL status isn’t directly correlated with decreased personal auto insurance premiums:

Regulatory restrictions – Some states prohibit using a policyholder’s CDL status when determining risk for personal auto policies. In California, for example, having a CDL cannot impact your rates.

Data limitations – Most claims databases don’t specifically track whether the driver involved in an accident had a CDL. Limited statistical data makes it difficult for insurance companies to connect CDLs with reduced accident frequency.

Inconsistent driving exposure – While driving commercial vehicles requires extensive skill, some CDL holders drive personal vehicles infrequently. Their auto policy risk exposure is low regardless of CDL status.

Varying motor carrier safety – The trucking companies that employ CDL holders have vastly different safety records. A CDL itself does not guarantee you work for a safety-focused company.

Individual factors outweigh CDL – Variables like your driving history, age, location, and credit rating have a much greater statistical impact on your personal auto policy rates than simply having a specialized license.

So without definitive data showing reduced claims frequency among CDL holders specifically, insurers take a cautious approach to factoring CDLs into rate calculations.

How Insurance Companies View CDL Drivers

Insurance providers have mixed perspectives on insuring CDL holders’ personal vehicles. Here are some key considerations:

Clean driving records – Most insurers agree that maintaining a long history of violation- and accident-free driving – which is required for many commercial driving jobs – can qualify you for lower premiums. This is true whether you have a CDL or not.

Responsible driving traits – Possessing the advanced skills and training needed to operate large commercial vehicles may indicate an overall safer driver. But without driving history data, it’s hard to quantify.

High mileage – Drivers who log a lot of miles for work may be perceived as higher risk due to increased time on the road. However, some insurers offer discounts for drivers who verify lower personal mileage.

Regulatory compliance – Adhering to strict regulations, vehicle inspections, and medical requirements for commercial licenses implies responsible behavior. But this may not extend to personal vehicle use.

Claims potential – Accidents in large commercial trucks have greater damage potential. But this is irrelevant to personal policies covering private passenger vehicles.

Insurance companies focus heavily on individual driving backgrounds, rather than making generalizations about CDL holders as a group when rating personal auto policies. Maintaining a clean driving history is the key to maximizing savings.

How to Get Discounts on Car Insurance with a CDL

Drivers with a commercial license can leverage their safe driving skills and experience to get discounted car insurance rates. Here are some ways to save:

• Ask about a safe driver discount – Mention your long record of violation- and accident-free driving to see if you qualify for lower premiums.

• Take defensive driving courses – Extra training can position you for discounts. Also maintain any state-required courses for keeping your CDL current.

• Inquire about low mileage discounts – Driving fewer miles for non-business purposes can qualify you for lower rates with some insurers. Confirm your eligibility.

• Bundle insurance policies – Insure personal vehicles on the same policy as any commercial coverage to potentially save up to 15% or more.

• Check professional associations – Memberships in trucking/transportation associations may offer access to group insurance discounts.

• Raise deductibles – Accepting higher out-of-pocket costs in the event of a claim can substantially reduce your premiums.

• Maintain good credit – A score of 760+ may qualify you for the best insurance rates.

Getting quotes from multiple carriers and comparing rates is key. Eligibility for CDL-related discounts varies, so find an insurer that rewards your safe driving background with lower premiums.

How CDL Status Impacts Car Insurance by State

Laws regarding using CDL status in auto insurance pricing vary by state. Here are some common approaches:

• States that allow rating based on CDL – Ohio, Louisiana, Alabama, and some other states let insurers incorporate your CDL when determining your car insurance risk profile and rates. Having a CDL may potentially impact your premiums positively or negatively in these states depending on the insurer.

• States that prohibit rating based on CDL – California, Massachusetts, Pennsylvania, and several other states prohibit insurers from using your CDL status – whether you have one or not – to determine your personal auto insurance rates. CDL status cannot impact your premiums.

• States with no clear laws – Some states like Texas and Florida don’t have definitive laws allowing or prohibiting use of CDLs in rate-setting. Insurer guidelines dictate the influence on rates.

• States requiring verification of CDL use – New York requires drivers to confirm they do not use personal vehicles for commercial purposes before insurers can incorporate CDL status into pricing.

So in addition to individual insurance company practices, your state laws significantly impact whether having a CDL matters when determining your personal auto policy rates. Shop around to find an insurer that offers a fair rate.

Case Study: How a CDL Impacts Insurance Costs

Let’s look at a case study to see how getting a CDL could impact average car insurance premiums:

Driver Profile

• 27 years old
• Located in Houston, TX
• Drives a 2015 Toyota Camry
• Had a speeding ticket 2 years ago
• Average credit score

Previous Average Annual Premium

• $2,250 per year

This driver pays slightly higher rates than average due to a recent speeding violation on record.

Getting a CDL

The driver goes through training and testing to obtain a Class A commercial driver’s license. He begins driving trucks locally for a transportation company.

However, he still owns his personal Camry and drives it occasionally outside of work hours.

New Average Annual Premium

• $2,200 per year

By maintaining a clean driving record, his new CDL status could