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What is commercial auto insurance for businesses?
What is commercial auto insurance?
Commercial vehicle insurance is a policy of physical damage and liability coverages for amounts, situations, and usage not covered by a personal auto insurance policy. This type of business insurance covers many types of commercial vehicles—from automobiles used for business purposes, including company cars, to a wide variety of commercial trucks and vehicles.
What kind of vehicles are covered by a commercial auto insurance policy?
Box trucks, food trucks, work vans and service utility trucks are just a few examples of larger commercial vehicles which will require a commercial auto insurance policy, including coverage for employees operating the vehicle and possibly the equipment inside. You may have heard of this coverage referred to as commercial auto insurance, commercial car insurance, truck insurance, or fleet insurance. While commercial vehicle insurance is most commonly associated with trucks or more recognized work vehicles, regular cars and automobiles may also require a commercial auto policy if they're used for business purposes.
Why do you need commercial vehicle insurance?
Certain business usage and vehicle types may be excluded from personal auto insurance policies. Why? Since personal auto policies were not meant for businesses, they are written and rated differently. More important to you—a business owner or manager—businesses often need the particular coverages found in a commercial auto insurance policy.
Determining whether your situation requires commercial auto coverage can still be confusing. Here's a little more information and examples of when you need commercial insurance .
What does commercial vehicle insurance cover?
Commercial vehicle insurance, like your personal auto policy, provides similar coverages such as liability, collision, comprehensive, medical payments (or personal injury protection) and uninsured motorist coverage . However, there are also differences between a commercial auto insurance policy and your personal auto policy that may include eligibility, definitions, coverages, exclusions, and limits.
What are the coverages in a commercial vehicle policy?
- Bodily injury liability coverage – pays for bodily injury or death resulting from an accident for which you are at fault and in most cases provides you with a legal defense.
- Property damage liability coverage – provides you with protection if your vehicle accidently damages another person's property and in most cases provides you with a legal defense.
- Combined single limit (CSL) – Liability policies typically offer separate limits that apply to bodily injury claims for property damage. A combined single limits policy has the same dollar amount of coverage per covered occurrence whether bodily injury or property damage, one person or several.
- Medical payments, no-fault or personal injury coverage – usually pays for the medical expenses of the driver and passengers in your vehicle incurred as a result of a covered accident regardless of fault.
- Uninsured motorist coverage – pays for your injuries and, in some circumstances, certain property damage caused by an uninsured or a hit-and-run driver. In some cases, underinsured motorist coverage is also included. This is for cases in which the at-fault driver has insufficient insurance.
- Comprehensive physical damage coverage – pays for damage to your vehicle from theft, vandalism, flood, fire, and other covered perils.
- Collision coverage – pays for damage to your vehicle when it hits or is hit by another object.
Why should I buy my commercial auto insurance from GEICO?
When you think of GEICO, you think of competitive rates and great service—two very good reasons to have your commercial auto policy with GEICO. You also want a company that has the resources to pay your claims. GEICO, a wholly-owned subsidiary of Berkshire Hathaway, Inc. , has combined assets of over $32 billion*. Learn more about GEICO's financial strength and the honors and ratings that set GEICO apart from other companies. Some of our policies are issued through National Indemnity Company (NICO) which is also a member of the Berkshire Hathaway group of insurance companies. Best of all, when you call, you'll get the same great service from GEICO. Learn more about why getting your commercial auto insurance policy with GEICO is a good move for your business.
Call (866) 509-9444 for more information about GEICO's commercial auto insurance or go online now to request a free commercial auto insurance quote .
Are the tools and materials in a commercial vehicle insurance policy?
Unattached tools and materials transported in your vehicle are not covered by commercial auto insurance.
Tools and equipment are best covered as part of a Business Owner's Policy or general liability policy.
Who is covered to drive my commercial vehicle?
Your commercial auto policy can cover employees, family members, and others as drivers.
If an unlisted driver is involved in an accident while operating any vehicle covered by this policy, coverage may be reduced to the minimum financial responsibility limits of your state.
What if I need certain liability limits for a contract?
GEICO Commercial Auto Insurance can offer higher liability limits than personal auto insurance. If a specific contract requires higher limits than you already have, call us at (866) 509-9444 .
We can also provide proof of your liability limits for your job bids and contracts as needed.
Is my trailer automatically covered by commercial vehicle insurance?
That depends on the size of the trailer and the policy issued.
- Less than 3,000* pounds gross vehicle weight: It's automatically covered for liability. If physical damage (theft or damage) coverage is requested on the trailer, the trailer must be listed on the policy regardless of the weight for the coverage to apply.
- More than 3,000* pounds of gross vehicle weight (usually more than one axle): The trailer is not covered unless it is listed on your policy.
*This may decrease to a 2,000 pounds load capacity based on the policy issued. Please read your policy in full for more information.
What other types of business insurance does GEICO offer?
GEICO can help you with the following types of insurance for businesses and freelancers:
- General liability : Covers your business property damage or bodily injury to others.
- Professional liability : Covers the services you provide in case you make an error and/or are sued.
- Business Owner's Policy : Covers merchandise and equipment, plus bodily injury to others or property damage on your premises. Also covers damage to the premises and business interruption expenses.
- Workers' compensation : Covers your employees if they're injured while working.
*Assets are combined and vary by company. Refer to our financial information page for more details.
The above is meant as general information and as general policy descriptions to help you understand the different types of coverages. These descriptions do not refer to any specific contract of insurance and they do not modify any definitions, exclusions or any other provision expressly stated in any contracts of insurance. We encourage you to speak to your insurance representative and to read your policy contract to fully understand your coverages.
Coverage is underwritten by Government Employees Insurance Company. In some cases coverage is provided through the GEICO Insurance Agency, LLC , either under an arrangement with National Indemnity Company (NICO), a Berkshire Hathaway affiliate, or with non-affiliated insurers. Some discounts, coverages, payment plans and features are not available in all states. Government Employees Insurance Co. is a subsidiary of Berkshire Hathaway Inc. GEICO: Washington, DC 20076
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We’re the #1 commercial auto insurer in America * , insuring more than 1.9 million commercial vehicles
Commercial auto insurance is liability and physical damage protection for vehicles, such as cars, trucks and vans, that are used for business. Commercial vehicles require a separate policy because they’re typically exposed to more risk than personal vehicles.
Commercial auto insurance isn’t just for industrial vehicles like semis or dump trucks. For example, businesses that use a car to run errands, carry tools or transport clients might also need a commercial auto policy.
Commercial Auto insurance from Progressive protects your business vehicles when they’re being used for work. They need their own policy because they’re typically exposed to more risk than personal vehicles.
Businesses like contractors, landscapers and truck drivers usually need a commercial auto policy. Businesses, like shops and restaurants, that use a car to run errands or transport clients might also need commercial auto insurance.
Commercial vehicles can include cars, light trucks, SUVs, vans and heavy trucks like semis and dump trucks.
Several factors can affect how much you pay for commercial auto insurance including your profession, coverage needs, vehicles and location.
But don’t worry. Progressive Commercial has customizable coverage options to keep your payments down and your business protected, including primary liability, uninsured motorist and more.
Keep your business rolling with Progressive Commercial. Call us or start a quote online today.
DISCLAIMER: Progressive Casualty Ins. Co. & affiliates
Customized coverage to match your business
Selecting commercial vehicle insurance coverage that meets your specific needs is vital to protecting your business and income. A commercial auto insurance quote typically includes:
- Physical Damage
- Medical Payments
- Uninsured Motorist
- Non-Owned Coverage
- All commercial coverages
We can also adjust your policy to reflect seasonal changes to keep your rates low and your coverage steady.
We also provide special benefits including customized coverages, competitive rates, discounts, exceptional claims service and more. Commercial Auto insurance covers:
Includes cars, light trucks, SUVs, vans and more. Business auto insurance customers enjoy advantages, including discounts and access to network shops throughout the country.
From dump trucks to tractor trailers, we have the experience you're looking for. We offer 24/7 claims service with an extensive truck repair network , discounts and more.
We cover a wide range of commercial trailers ranging from pickup truck utility trailers to large dump body trailers pulled by a tractor.
How much does commercial auto insurance cost?
In 2022, the national median monthly cost for commercial auto insurance through Progressive ranged from $172 for contractors to $175 for business auto customers. The average monthly cost was about $220. ‡‡ Most customers find their monthly premium to be closer to the median price because expensive outliers often drive up the average cost.
Several risk factors contribute to your premium, including your profession, coverage needs, vehicles, drivers, driving history and location. You can expect to pay more than the average rate if your business requires more coverage or has a history of claims.
Learn more about commercial auto insurance cost and what you can do to save on commercial auto insurance .
The best way to find out what you'll pay is to get a commercial auto insurance quote. Call us or start a quote online .
Get more for your money
It’s easy to see why we’re America’s #1 commercial auto insurer * . Our custom policies offer flexible and convenient benefits so you can focus on what matters most: your business.
Here are just a few of the many advantages of having a Progressive commercial auto policy:
- 24/7 policy service by phone or online
- Adjustable coverages, any time
- Flexible billing and payment options
- Highly trained commercial claims adjusters
- Unlimited travel radius offered in most states
- Discounts †
You can save 5% automatically by enrolling in Snapshot ProView †† , an exclusive benefit for Progressive Commercial customers. Enrollees with an established safety record can save between 8% and 20%, and businesses with three or more vehicles can gain further insight with free fleet management tools.
Do you need a commercial auto policy?
Learn the difference between personal and commercial auto insurance to find out if you need commercial vehicle insurance .
Common questions about commercial auto insurance
Get quick answers to some of the most asked questions about commercial auto insurance.
Does commercial auto insurance cover personal use?
Yes. While personal auto insurance doesn’t cover a vehicle being used for business purposes, commercial auto insurance covers your vehicle for both commercial and personal use.
What drivers are covered under commercial auto insurance?
Drivers with regular access to your commercial vehicle should be named on your policy. Additional drivers may be covered, but restrictions apply for anybody not listed on the policy.
Are tools and materials in my vehicle covered under a commercial auto policy?
It depends. Permanently attached tools and equipment are covered by a commercial auto policy, but any additional tools require inland marine coverage . You can add inland marine insurance to your general liability policy.
Do I need commercial auto insurance to drive for a rideshare company, like Lyft or Uber?
In most cases, no. Rideshare companies typically offer insurance when you’re driving for them, but it may have restrictions. To make sure you’re well protected, you can add coverage to your personal auto insurance through policy amendments called endorsements. You could also get commercial for-hire livery insurance. Learn more about your rideshare insurance options.
Do I need special insurance to deliver pizza or other goods for a fee?
Yes, most likely. Most personal auto insurance policies won’t cover losses while delivering for a fee, including pizza delivery and most other delivery services. Your claim might be denied if you don’t have commercial auto insurance and get into a work-related accident. You could also be held personally responsible for the damages. A commercial auto policy can prevent this from happening.
How much will my insurance go up if I’m involved in an accident with my commercial vehicle?
It depends. An accident doesn’t affect the rate of your current policy, but it could affect your rate at renewal. Your policy is rewritten every time it expires to reflect your current situation. Accident-related rate changes are determined by various factors, such as who was at fault, the cost of the claim, and your accident history. So, accidents are considered when determining your rate, but an increase isn’t guaranteed.
Does commercial auto insurance cover theft of personal items?
Not necessarily. A commercial auto policy covers the vehicle and any permanently attached items, such as a ladder rack or a truck bed toolbox, but it doesn’t cover the ladders and tools themselves. For the contents of your vehicle to be covered, you’d need a general liability policy with an inland marine endorsement.
Does Progressive offer commercial auto insurance in my state?
Yes. Progressive insures commercial vehicles in all 50 states . However, we don’t currently write policies in Washington D.C.
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What does commercial auto insurance cover.
- Bodily Injury Liability Coverage helps pay for the other driver’s medical expenses if you or one of your employees causes an accident.
- Property Damage Liability Coverage pays for damage that you or your employees cause to someone else’s property.
- Drive Other Car Coverage covers your business’ executive officers and their spouses if they drive vehicles that aren’t on your commercial auto insurance policy.
- Collision Coverage helps pay to fix or replace your business’ car if you hit something, like another car or pole.
- Comprehensive Coverage can help pay for car damages caused by theft, fire or natural disasters.
- Medical Payments Coverage can help pay for medical expenses for your employees and their passengers in the event of an accident, such as medical treatments and rehabilitations, dental care or funerals.
- Uninsured/Underinsured Motorist Coverage helps pay for you or your employees’ medical expenses or to fix your car if the other driver lacks enough liability coverage or is uninsured.
- Rental Car Coverage offers liability coverage while you or your employees are driving a rental vehicle for business. Many rental companies have loss damage waivers or collision damage waivers that you can sign to avoid paying for property damage to a rental car.
- Personal Injury Protection (PIP) , also known as no-fault insurance, can help cover medical expenses, lost wages or funeral costs after an accident, no matter who is at fault.
- Hired and non-owned auto insurance offers lawsuit liability coverage if you or your employees are involved in an accident with a personal , rented or leased car that was used for business errands. However, this type of commercial vehicle insurance coverage will not pay for damages to the personal, rented or leased car.
What Is Not Covered?
- Medical expenses unrelated to an accident that happened while an employee is driving a company vehicle.
- Contents inside your business vehicle that were damaged in an accident.
- Accidents that occur when an employee is driving a personal vehicle for personal reasons. You can get coverage for this with hired and non-owned auto insurance coverage.
- Repairs to a rental vehicle you or your employees were driving while waiting for your company vehicle to be fixed after an accident. If your business needs this type of coverage, you can add hired and non-owned auto insurance to your policy.
What Types of Vehicles Are Covered?
- Pickup trucks
- Service utility trucks
Do I Need Commercial Auto Insurance?
- Owns, leases or rents vehicles, such as cars and commercial trucks **
- Has employees who drive their own vehicles for business
- Has employees who operate leased, rented or owned company vehicles
- Has employees who are livery drivers
Beauty Shop Insurance
“I had our business insurance with The Hartford. I called today to add Commercial Auto and an Umbrella policy. This was handled with one call by highly efficient representatives.” – Joe K.
How Much Does Commercial Auto Insurance Cost?
- Type of business you have
- Type of vehicle your employee drives
- Driving record of your employees’
- Type of load the company vehicle is carrying
- Location of your company
- Amount of liability coverage you choose
Get a Quote for Commercial Auto Insurance Today
Choose the hartford for commercial car insurance, customized coverages, superior claims experience, expanded protections, commercial auto insurance faqs, what is the difference between commercial and personal auto insurance.
You’ll need commercial auto insurance if you or your employees are using a company vehicle for business reasons. Personal auto insurance is needed when you or your family are driving your car for personal reasons, including commuting to and from work. Commercial auto insurance usually offers higher limits and liability coverage than a personal auto insurance policy.
Who Is Covered to Drive My Commercial Vehicle?
Typically, all of your business employees with a valid license would be covered under this policy as additional insureds, as long as they’re driving a covered company vehicle.
Are Tools and Materials in My Vehicle Covered Under a Commercial Auto Policy?
Tools and materials that were inside your commercial vehicle at the time of an accident are not covered under your commercial auto insurance policy. You can get coverage for your business’ physical assets, like tools and equipment, with a Business Owner’s Policy (BOP) .
If you already have commercial auto insurance, learn about other business insurance and workers' compensation coverages we offer. Call 855-829-1683 to speak to one of our specialists. The Hartford has partnered with Via Transportation, Inc. as it expands from the U.S. into Canada, offering commercial auto ride-sharing coverage to protect its drivers and passengers. For more information about the coverage, read the policy .
For Larger Businesses Specialized commercial auto coverage meant for mid- to large-size businesses.
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More answers to frequently asked commercial auto questions.
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Last Updated: June 26, 2023 ** Gap coverage for lease and loaned vehicles not available in all states. Additional disclosures below.
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Commercial Auto Insurance 101
Commercial auto insurance is a business insurance policy that applies to autos owned by or used in your business that protects your business against liability for damages caused by accidents involving your business autos and provides certain compensation to occupants of your business autos injured in accidents. If your business owns vehicles, a commercial auto insurance policy can provide valuable financial protection to you and your employees while driving a company owned vehicle or a hired or personally-owned auto in your business operations. It's important to know that a personal automobile insurance policy usually does not cover vehicles used in the operation of your business.
What Does Commercial Auto Insurance Cover?
Commercial auto insurance typically provides coverage for: liability damages; collision or comprehensive physical damage loss to your business autos; medical expenses for injury to occupants of your business autos; and damages sustained by occupants of your business autos due to the negligence of an uninsured or underinsured motorist.
The commercial auto policy provides physical damage coverage for vehicles you own, lease, hire or use in your business and liability coverage for bodily injury and property damage caused to others by your use of the insured business vehicles.
It can include two types of physical damage coverage for your insured vehicles:
- Collision loss: damage from auto accidents.
- Comprehensive loss: damage from weather, theft and other non-collision causes.
It also includes two types of liability coverage:
- Bodily injury coverage: for accident-related injuries to others when you're at fault.
- Property damage coverage: from accident-related damage to someone else's property, such as a car or house, when you're at fault).
Do I Need Commercial Automobile Insurance?
If you own, lease, hire or use vehicles for business, you should minimally carry liability coverage. It's mandatory in most states for owned autos. In addition, businesses that move goods or people across state lines are required by federal law to have it. For larger commercial vehicles, you may need a commercial truck insurance policy.
You need commercial auto insurance for vehicles that:
- Are used for business.
- Carry a commercial license plate or tag.
- Are registered commercial.
You should also carry commercial auto coverage if you or your employees use vehicles for work-related tasks, such as:
- Driving clients to the airport;
- Going on sales calls;
- Taking packages to a shipper;
- Shopping for office supplies.
Important to know: You may be required to get additional coverage if you use vehicles for certain functions, including:
- Delivering food, products or publications;
- Acting as a chauffeur, taxi or limo service;
- Transporting flammable or hazardous materials;
- Carrying equipment;
- Towing vehicles;
- Trucking and moving freight.
How Does Commercial Auto Insurance Work?
Commercial auto insurance covers vehicles used for business and the people who drive them.
If you or a driver of your business vehicle causes an accident that injures another person or damages their property, they can file a claim on your policy and bring a lawsuit against you or the driver. Your liability insurance will cover costs to pay damages on the claim up to the policy limit. You or your business will be responsible for any amount of damages above the limit. Your liability insurance will also cover the costs to defend you or the driver of your business vehicle in an accident-related lawsuit, separate from the policy limit.
What are the Coverages Included in a Commercial Auto Insurance Policy?
Many types of coverage are available. Some of the most common coverages include:
- Collision coverage pays for accident-related damage to your insured business vehicle.
- Comprehensive coverage pays for damage to your insured business vehicle from non-collision causes such as theft, weather, vandalism or fire.
- Rental reimbursement pays for a rental vehicle, up to certain limits, after an accident causes damage to your insured business vehicle.
- Liability coverage pays injury damages to others and damage to other people's property if you are at fault, including your legal expenses if you're sued.
- Uninsured or Underinsured Motorist coverage pays for injury damages to or property damage suffered by occupants of your insured business vehicle if the accident is caused by an inadequately insured driver.
- Personal Injury Protection pays medical expenses and income loss for accident-related injury suffered by occupants of your insured business vehicles, regardless of fault.
- Medical Payments coverage pays medical or funeral expenses for accident-related injury suffered by occupants of your insured business vehicles, regardless of fault.
These coverages are available for autos you own and may be available for autos you hire or lease or for non-owned autos (autos used in your business that you don't own, hire or lease). Some of these coverages vary by state. If your autos are garaged out of state, check with your agent to ensure you have adequate coverage for the states where your insured autos will be used.
Is Personal Use Covered by a Commercial Policy?
Personal use of a business vehicle is generally covered by a commercial policy. However, certain coverage for family members is often not provided. Check with your agent to determine whether you need additional coverage for family use.
How Do I Purchase Commercial Auto Insurance?
You can purchase commercial auto insurance through an independent insurance agent. They'll take time to understand your business operations and vehicle use so they can find optimal coverage at a fair price. Your agent will also guide you through the claims process when an incident occurs.
Using one agent for all your business insurance may help ensure your business has maximum protection and you aren't paying for unnecessary duplicate coverage.
How Much Does a Policy Cost?
It depends. The price is based on factors including:
- Business size;
- Number and types of vehicles insured;
- Number of employees driving vehicles insured;
- Costs of vehicles hired;
- Business and driving risks;
- Amount of coverage.
An agent can help you find affordable coverage.
Are Premiums Tax-deductible?
Sometimes they can be deducted when a vehicle is used for business. Check with your tax expert to find out for sure.
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Commercial vehicle insurance
Protect the vehicles that drive your business.
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1 vehicle / 1 driver
Property and liability
One or multiple cars, big fleets, or trucks – no matter the kind of wheels your business relies on, you’ll likely need commercial insurance.
You can choose the level of coverage that works for you to ensure your vehicles are protected if ever an incident happens.
Third-party liability, direct compensation – property damage, accident benefits, optional coverage, collision or upset, comprehensive, specific perils, all perils other than collision or upset, enhanced coverage, good record protection, responsible driver guarantee, minor conviction rating waiver, accident rating waiver, roadside assistance, replacement cost, insurance for garage operations.
Third-party liability coverage protects you if you’re responsible for injuring someone or damaging someone’s property.
Auto insurance is mandatory in most regions of Canada. But having an insurance policy doesn’t necessarily mean you have the right coverage. For instance, if you use your vehicle for business purposes, you may be required to purchase commercial auto insurance.
Direct Compensation Property Damage (DCPD) coverage protects your vehicle, what’s in it, and the loss of use in the event of an accident where you’re not or only partially at fault. Direct compensation means you deal with your insurer directly instead suing the other driver to recover damages.
If you’ve been injured in an accident, accident benefits can financially assist you while you’re recovering, regardless of fault.
Keep your vehicle safe from theft and save on your premium.
Protect your vehicle by installing a Tag vehicle tracking and recovery system.
Collision or upset coverage protects your vehicle from damages caused by impact with another vehicle or an object such as a guardrail, or if your car flips over.
Comprehensive coverage protects your vehicle from losses other than collision or upset, such as fire, theft, vandalism, hail, flood, and more.
All perils coverage combines the protections of Collision or upset and Comprehensive. It also protects your vehicle in the event of theft by an employee who drives or uses, services or repairs the insured vehicle.
Specific risks coverage protects your vehicle from damages caused event specifically covered by your policy, such as lightening, an explosion or earthquake.
All perils other than collision or upset coverage protects your vehicle from damages caused by fire, theft, vandalism, hail, flood, and more.
Good record protection guarantees your insurance premium won’t increase at renewal as a result of up to two losses of any kind over a 5-year period. We forgive you not once, but twice, regardless of fault.
Plus, since this protection applies to individual vehicles, it can extend to all employees who drive them.
Responsible driver guarantee ensures your insurance premium won’t increase at renewal as a result of the first chargeable at-fault accident involving the insured vehicle.
Minor conviction rating waiver ensures your insurance premium won’t increase at renewal as a result of one minor moving violation within the three years before the effective date of renewal.
Accident rating waiver ensures your insurance premium won’t increase at renewal as a result of the first chargeable at-fault accident involving the insured vehicle.
Roadside assistance entitles your business to four service calls per year, per covered vehicle of 4,500 kg or less, from these options:
Vehicle towing up to 50 kilometres
Up to 10 litres of fuel delivered at no charge
All of your employees who take the wheel of a covered vehicle can count on assistance services 24 hours a day, 7 days a week should an something go wrong on the road in Canada or the United States. They just have to dial 1 844 428-2020 or go to assistance.intact.ca .
Replacement cost coverage protects the value of your vehicle if it needs to be replaced because it was stolen or damaged beyond repair. The compensation you will receive will be for the original value of the vehicle, not its depreciated value at the time of the incident.
If you look after vehicle storage, sales, maintenance and repair, we’ve got you covered, too.
Automobile dealers, repair shops, storage garages, service stations, car washes and parking lots owners – talk to a broker about your insurance options.
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Commercial Auto Insurance: Best Options for Small Businesses
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Commercial auto insurance covers vehicles used for business purposes, whether or not they’re owned by your company. The coverage is a must for small-business owners who drive to work sites or to meet clients, deliver goods, haul tools or supplies or have employees who drive their vehicles.
Commercial car insurance is separate from rideshare insurance and personal auto insurance, though you can often bundle these to save money. You may also be able to package this coverage with other types of business insurance , including general liability and commercial property insurance.
Top commercial car insurance providers
Many of the household names in consumer auto insurance also offer commercial policies. Below are some high-rated consumer car insurance companies that also offer commercial policies. NerdWallet’s business insurance ratings are based on each company’s financial strength, complaints relative to its size, digital features and customer service availability.
You can get a quote online.
You can buy other business insurance coverage, including a business owner’s policy, directly from Allstate.
Claims must be filed over the phone.
Why we like it: Allstate is among the top 10 providers of commercial car insurance by market share in the U.S., according to the Insurance Information Institute, and it earned high marks from NerdWallet for its low number of complaints filed with state regulators relative to its size. Read NerdWallet’s review of Allstate business insurance.
State Farm ranked highest in overall customer satisfaction in consumer research firm J.D. Power’s annual small-business insurance study in 2022.
Insurance agents sell virtually every type of business insurance coverage.
Limited online features for commercial insurance customers.
Why we like it: When it comes to customer satisfaction, State Farm is atop the heap. That’s a testament to the insurer’s focus on one-on-one service, with a vast nationwide network of State Farm agents who handle tasks that include providing an initial quote, purchasing a policy and filing a claim. Read NerdWallet’s review of State Farm business insurance.
Commercial auto insurance can cover dual personal and business use.
Coverage available for semitrailers.
Progressive sells other types of business insurance, but they’re policies from other insurance companies.
Why we like it: Progressive is the largest commercial auto insurer in the U.S., according to the Insurance Information Institute  Insurance Information Institute . Top 10 Writers Of Commercial Auto Insurance By Direct Premiums Written, 2021 . View all sources . It offers a range of discounts to help you lower your premium, including the option to bundle your commercial car insurance with your personal policy, as well as other types of business insurance. Read NerdWallet’s review of Progressive business insurance.
You can report a claim online.
No coverage for semitrailers.
Geico sells other types of business insurance, but they’re policies from other insurance companies.
Why we like it: Geico has been insuring automobiles for more than 70 years. The insurer offers several ways to lower your rate, including bundling commercial and personal auto insurance or combining your coverage with other business insurance. Read NerdWallet’s review of Geico business insurance.
What is commercial auto insurance?
Commercial car insurance covers vehicles used for business purposes, whether by you or an employee. Any accident-related expenses that arise from injuries, deaths or property damage are covered up to the policy limits.
Commercial auto insurance is sometimes confused with rideshare insurance, which is typically required if you’re a rideshare or delivery driver.
A commercial auto insurance policy typically includes:
Liability coverage , including bodily injury and property damage liability, to pay for injuries, deaths or property damage if a driver causes an accident while working. This coverage may also pay legal fees.
Medical payments , no-fault or personal injury protection , to pay for the medical expenses of the driver and any passengers in an accident, regardless of fault.
Uninsured motorist coverage to pay for injuries and sometimes property damage caused by an uninsured or hit-and-run driver. This coverage may also include underinsured motorist coverage if the at-fault driver doesn’t have enough car insurance coverage to cover all expenses.
Comprehensive and collision coverage to pay for vehicle damage from theft, vandalism, flood, fire and damage if a work vehicle is hit by an object or another car.
Commercial policies could include other coverage, like towing and labor, rental reimbursement and lease gap coverage, but they generally don’t cover tools or other items you’re carrying in the vehicle. A business owner’s policy — which contains commercial property insurance protections — can cover tools owned by the company, while a home or renters insurance policy covers personal belongings in the vehicle.
» MORE: Learn more about the cost of commercial car insurance
Do you need commercial auto insurance?
If you regularly use your car for work — with the exception of commuting — you’ll need a commercial auto policy. You should consider commercial car insurance even if you’re an independent contractor or self-employed full or part time.
You’ll likely need a commercial policy if you:
Drive for cash. Driving friends to a concert or grabbing food for a co-worker is covered by a personal policy, but transporting people or goods for money is not.
Log high mileage for work, such as regular visits to store locations or job sites.
Transport items for work purposes, like heavy tools or equipment.
Have employees driving on your behalf. It’s your responsibility to insure work-related driving, whether or not you own the vehicle.
If you use your car only occasionally for business, your personal policy may offer enough coverage. Check out the scenarios below to see when you may need a commercial policy and when a personal policy is sufficient.
» MORE: What small-business owners should know about commercial car insurance
How to get commercial auto insurance quotes and buy coverage
Follow these steps to get commercial auto insurance.
Decide which vehicles and drivers you need to insure. You’ll probably need U.S. Department of Transportation or vehicle identification numbers for each vehicle and driver’s license information for each driver to get quotes.
Determine how much coverage you need. Insurers typically recommend carrying $1 million in liability protection, according to the Insurance Information Institute. How much collision and comprehensive coverage you need may depend on the size of your fleet, the age of your vehicles and other factors.
Get multiple quotes. Comparing business insurance quotes can help you ensure you’re getting the coverage you need for the best price. You can get quotes online in minutes from Progressive, Allstate and Geico or from online business insurance companies.
Buy a policy. Some providers will connect you with an agent to complete your purchase. In other cases, you may be able to buy your policy online on your own.
While commercial and personal policies have similar types of coverage, there are some significant differences. Commercial auto policies are usually tax-deductible and come with higher liability limits because business vehicles need more protection. They also can cover vehicles not owned by the company, for instance if an employee drives their car for work.
The median cost of commercial auto insurance is $142 per month, according to Insureon, an online marketplace for small-business insurance. But the cost of your policy will depend on the vehicle type, the driving record of all drivers, how the vehicle is used and coverage limits, among other factors.
Most well-known insurers offer commercial auto insurance, including Geico , Progressive , State Farm , Allstate and Liberty Mutual . Because these policies are typically more expensive than those for personal auto coverage, getting several quotes is the best way to find affordable rates.
While commercial and personal policies have similar types of coverage, there are some significant differences. Commercial auto policies are usually tax-deductible and come with higher
because business vehicles need more protection. They also can cover vehicles not owned by the company, for instance if an employee drives their car for work.
Most well-known insurers offer commercial auto insurance, including
. Because these policies are typically more expensive than those for personal auto coverage, getting several quotes is the best way to find affordable rates.
Business insurance ratings methodology
NerdWallet’s business insurance ratings reward companies that offer small-business owners reliability and ease of use. Ratings are based on weighted averages of scores in several categories, including financial strength, customer complaint data, shopping experience and customer service. Learn more about how we rate small-business insurance companies .
These ratings are a guide, but insurance policy details and prices can vary widely from business to business and provider to provider. We encourage you to shop around and compare several insurance quotes.
NerdWallet does not receive compensation for any reviews. Read our editorial guidelines .
Insurer complaints methodology
NerdWallet examined complaints received by state insurance regulators and reported to the National Association of Insurance Commissioners in 2018-2021.
To assess how insurers compare to one another, the NAIC calculates a complaint index each year for each subsidiary, measuring its share of total complaints relative to its size, or share of total premiums in the industry. To evaluate a company’s complaint history, NerdWallet calculated a similar index for each insurer, weighted by market shares of each subsidiary, over the three-year period.
Our star ratings consider ratios for both general liability insurance and commercial property insurance. When an insurer sells policies that are underwritten by several different insurance companies, we consider the NAIC complaint ratios of all the underwriters.
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Understanding commercial auto policies
If you’re considering auto insurance coverage for your business, it’s important to understand the basic elements of a commercial auto policy. The more you know, the easier it is to compare coverage and make an informed choice.
Commercial auto insurance definition
Commercial auto insurance provides a variety of coverages for cars, trucks, vans and other vehicles used by your business. There are three basic parts of every commercial auto insurance policy:
- Physical damage insurance − includes collision and comprehensive coverage
- Liability insurance − includes bodily injury, property damage, uninsured motorist and underinsured motorist coverage
- Other coverage − includes medical payments, towing and labor, rental reimbursement and auto loan or lease gap coverage
What does commercial auto insurance cover?
Pays for damage to your vehicle if you hit another vehicle, another vehicle hits you or your vehicle rolls over, regardless of who is at fault. Collision coverage may be required if your vehicle is financed or leased
Pays for damage to your vehicle from causes other than an accident. Such causes may include theft, flood, vandalism, earthquakes, fire or damage from a bird or animal
Covers bodily injury to others and any property damage to another vehicle if you are at fault in an accident. Bodily injury pays others’ medical costs and lost wages, and your legal expenses if a lawsuit is brought against you due to an accident
Uninsured motorist coverage
Pays for your injuries or property damage if you’re hit by an uninsured driver or, in some states, an unidentified driver
Underinsured motorist coverage
Protects you if the at-fault driver doesn’t carry enough liability insurance to cover your bills – unless you live in a no-fault state, where each driver’s auto insurance policy responds to their own losses
Options & add-ons
Beyond these basic components, you can customize your business auto policy with the following coverages (also called endorsements):
Protects you when problems arise that are not typically handled under your commercial auto policy. This could include being locked out of your car, dead batteries and flat tires
New vehicle replacement cost coverage
Replaces your new vehicle under a total loss with a new or comparable vehicle. Also provides gap coverage for any amount you may owe that’s above your car’s actual cash value
Hired auto physical damage with loss of use coverage
Covers comprehensive and collision damage to a leased or rented vehicle, as well as any other contractual obligations to the leasing or rental company
Auto loan or lease coverage
Covers the difference between the unpaid amount on the loan or lease and the actual cash value of the vehicle, if your vehicle is a total loss after an accident
Provides towing coverage beyond what’s covered by your standard business auto policy. It also covers towing, jump starts and minor roadside repairs
Pays for a rental car up to the limits of your policy so you have transportation after an accident
Medical payments or personal injury protection coverage
Pays for medical expenses if your health care insurance – or your passengers’ – doesn’t cover the costs
Related topics & resources
Commercial Auto Insurance
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Here’s everything you need to know about Commercial Auto insurance:
What is commercial auto insurance.
Commercial auto insurance is essential to protect your business from unexpected expenses if you or your employees are involved in an accident.
Whether you have a single work truck or a small fleet of delivery vehicles, your commercial car insurance policy can provide coverage up to your policy limit for:
- Expenses for claims related to emergency care
- Medical bills
- Damage to your vehicle
- Gap coverage on financed and leased vehicles
Personal auto vs. business auto insurance
Perhaps you already have a personal auto insurance policy. Nice. But it probably won’t cover accidents that happen while you are driving for your business.
If you use your vehicle for work, you may need a business auto insurance policy if you:
- Deliver any goods, including pizza, flowers or other products
- Provide a service that involves regularly using a vehicle
- Carry equipment you use for work, such as cleaning or landscaping tools
- Go to job sites
Why is Commercial Auto insurance important?
Whether your vehicle is essential for your daily operations or something you only occasionally use for work, you need an auto insurance policy customized for your business.
You may be required by law to have commercial auto insurance
Most states require that your business-owned vehicles are insured for certain types of accidents with commercial auto coverage. The most common state requirements are liability insurance for injuries and property damage.
Some states also require uninsured/underinsured motorists coverage and medical payments coverage (also known as personal injury protection).
The types of vehicles your business is using, how they are being used and who is using them will determine the specifics of what kind of insurance you need.
Business car insurance can provide more coverage
If you’re like most business owners, the separation between work and home is probably blurred.
Even if you only have one car for all your transportation needs, you're exposed to different risks when you drive for business than you are when you drive personal reasons. You may need the more extensive coverage that is provided in a commercial auto policy.
If you have employees that operate your cars , your commercial auto insurance policy can also cover them up to the limits of the policy.
Commercial auto insurance can help you attract customers
Commercial auto insurance is essential for your customers, too. Having the right car insurance demonstrates that your business is prepared for the unexpected. You know that things don't always go exactly to plan, but your customers can be confident they'll receive the same reliable service.
Some customers might require you to have a certificate of insurance before they agree to work with you.
What does Commercial Auto cover?
Commercial auto insurance helps cover injuries and damages resulting from work-related car accidents.
Most states require commercial auto insurance for business-owned vehicles to help pay for medical expenses and property damage.
Commercial auto can help pay for:
- Medical expenses
- Collision repairs
Learn more about what commercial auto insurance covers .
How much does Commercial Auto insurance cost?
Commercial auto insurance cost can vary, depending on your insurance history, the number of vehicles you own, vehicle type and usage.
The best way to find out how much a policy will cost for your business is to get a free commercial auto insurance quote online.
Start your free instant quote online today .
Commercial Auto FAQ
Learn about commercial auto insurance with more frequently asked questions about our coverage. If you don’t find find the answers you’re looking for, our licensed insurance advisors are standing by to help.
How do I know if I need Commercial Auto insurance?
If you have vehicles that are titled to your business that you or your employees drive, you’ll need commercial auto insurance. This is required by law in almost every state.
Even if you drive a car for work that’s not titled to your business, you’ll still need to get commercial auto coverage. This is because your personal auto insurance usually won’t provide coverage if you drive your own vehicle for business reasons.
Let’s say you’re a house cleaner and you drive your personal vehicle to all the homes you clean. You might think that the regular car insurance you got when you bought the care is enough, but if you got into an accident on the way to a job you might not be covered.
You might also want to consider commercial auto insurance if you use your vehicle to:
- Tow a trailer carrying your work equipment
- Transport goods
- Help your employees get to job sites
Small businesses might sometimes ask employees to drive their own cars for a job or rent vehicles. Hired and non-owned auto insurance is a form of commercial auto coverage that helps pay for accident damages in these instances.
I use my personal vehicle for my business. Can I insure it with this policy?
Yes! If you use your personal vehicle for business purposes, we can insure it under our commercial auto policy.
For example, if you own a van that you use for personal travel, as well as your job as a painter, it would be covered under our policy when it’s used for work purposes.
It’s important to note that we’re unable to provide coverage for certain high-end vehicles and vehicles larger than standard trucks or SUVs.
Does Commercial Auto insurance cover personal use for my own vehicle?
Yes, if your vehicle is covered by our commercial auto insurance it will be protected when driven for personal or work use.
For example, if you use that vehicle for your registered business to get to job sites and you sometimes use it on the weekends to haul your fishing gear, commercial car insurance would cover your fishing trips.
Are the items that I transport with my insured vehicle covered by this policy?
A commercial auto policy will cover the vehicle used to transport items, but not the items themselves.
For example, if you have a pickup truck that you use to transport ladders and power tools, the policy would cover the truck but not the equipment.
If you’re concerned about your gear going missing you should consider purchasing tools and equipment insurance . If you regularly transport your tools in your vehicle, this coverage will help replace or repair any damaged or stolen equipment.
Can I buy Commercial Auto insurance by itself?
Yes. You can buy commercial auto by itself, but we recommend buying liability insurance along with your commercial auto insurance. General liability insurance can protect your business from certain costs including medical expenses, legal costs and more. When you buy both policies together, you also get a discount on them.
Is Commercial Auto insurance cheaper than personal car insurance?
No, commercial auto insurance is almost always more expensive than personal car insurance . Policies that cover just your own car, or your family’s couple of cars, typically offer protection against collisions, personal injuries and medical payments but they don’t take into consideration the much riskier situations dealt with by commercial auto insurance.
When you’re transporting people or goods or providing a service with your vehicle, you’re at risk for claims to be brought against you for property damage or injured parties. Commercial auto by necessity has higher liability limits, which ends up costing you more every month than you pay for your own personal vehicle.
Do you offer personal auto insurance?
No, we are solely focused on business insurance. It’s important to know that a commercial auto policy can be used to insure your personal vehicle if that vehicle is used for your registered business.
For example, if you own a truck that you use for personal travel, as well as your job as a landscaper, it would be covered under our policy when it’s used for work purposes.
What does liability coverage for an auto insurance policy mean?
Most states require that your business-owned vehicles are insured for certain types of accidents with auto liability coverage. If you’re driving and are at fault in a car accident — and are liable for the incident — liability coverage helps pay for the other person's expenses.
Auto liability coverage covers two types of incidents: bodily injury and property damage. Liability insurance under a commercial auto policy could therefore cover medical expenses that result from an at-fault accident, as well as any damage to property that got damaged in that accident.
How we can help you with Commercial Auto insurance
If you have more questions, our licensed, U.S.-based insurance advisors are ready to help.
When you’re ready to explore coverage options for your business, you can get an instant quote online and purchase business insurance within a few minutes.
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Business insurance is divided into different policies. We offer seven types so it's easy to design the coverage that fits your business.
Protect yourself from accidents that cause physical injury or damaged property.
Shield yourself from lawsuits that claim your work errors caused financial losses.
Cover medical bills and lost wages if your employees have an accident at work.
Stay on the road with coverage for dents, tows and damage to someone else’s vehicle.
Upgrade your general liability coverage to protect any gear that’s stolen, damaged or lost.
Keep your building, inventory and equipment protected from fire or water damage.
Combine general liability and commercial property into one policy to protect your business.
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What's covered by a commercial auto insurance policy.
If you have commercial auto insurance for your business, you’ll be protected from the financial burdens that come from accidents, like vehicle repairs and medical bills. Remember, a covered claim will be subject to your policy's deductibles and limits. Additionally, coverage availability and requirements vary by state.
Here are some common commercial auto insurance coverages to help you get started:
Allstate offers two liability insurance components in a commercial auto policy: bodily injury liability and property damage liability coverage. Every state requires auto liability coverage.
Let’s say your employee is driving a company vehicle and causes an accident. Bodily injury coverage helps pay for the other driver's medical bills, and property damage coverage helps pay for their car repairs.
Collision coverage helps pay to repair your company vehicle or may help pay to replace it if it's a total loss, after a covered accident.
Comprehensive coverage helps pay for your business vehicle repairs if it’s damaged in a non-collision-related event, like theft, fire, vandalism or hail. For example, if a storm rolls through and hail damages your company car, comprehensive coverage may help pay for repairs.
Uninsured/underinsured motorist coverage
If one of your employees is in an accident and an uninsured or underinsured driver is at fault, this coverage helps pay for your employee's medical bills.
Rental car coverage
If your company vehicle needs to spend some time in the shop after an accident, rental car coverage helps keep your business running with a rental vehicle.
Designed for businesses with company vehicles, this policy helps pay for repairs to your company vehicle or a driver’s medical bills if there’s an accident.
What's not covered
Not everything is covered by a standard commercial auto insurance policy. While coverages vary based on where you live, the following expenses and scenarios are typically excluded or require additional coverage options be added to your policy:
- Medical expenses that are unrelated to an accident when an employee is driving a company vehicle.
- The contents inside your business vehicle.
- Accidents that happen when an employee drives a personal vehicle for business reasons.
- Repairs to a rental vehicle you're driving while waiting for your company car to be fixed after an accident.
Do you need commercial auto insurance?
It depends on the business you’re in. Here are a few of the professions that may benefit from commercial auto insurance:
- Artisan / specialty contractors
- Doctors and Dentists
What is the risk if I don’t have commercial auto insurance?
If you don’t have commercial auto insurance for your business, you may be vulnerable to financial risk when accidents happen. That’s because typically, a personal auto policy doesn’t cover your business vehicles. Here are a few of the risks you and your business may face without commercial auto insurance:
- No liability coverage
- No coverage for any vehicle repairs
- No coverage for legal expenses
- No comprehensive coverage for unrelated damages such as theft, vandalism or hail
Why you should use Allstate for your commercial auto insurance policy
When you purchase a commercial auto insurance policy from Allstate, you’ll know you’re always up-to-date on your policy, while being treated with the respect you and your business deserve. A.M. Best. has given Allstate an A+ rating for superior 24/7/365 claims service.
How much does commercial auto insurance cost?
There are a few factors that determine the amount of your commercial auto insurance policy. These include the coverages you choose, your coverage limits (the maximum amount of money insurance will pay for a covered claim) and your deductible (the amount you pay out-of-pocket for a covered claim).
What type of vehicles are covered by commercial auto insurance?
Not all company vehicles are the same. Here are some of the most common types of business vehicles covered by commercial auto insurance:
- Pickup trucks
- Service utility trucks
Reading your policy declarations
When you purchase Allstate commercial auto insurance, you'll receive policy declarations. This document "declares" the choices you've made for your insurance policy, specific to your commercial auto coverage. Your policy declarations specify things like your deductibles and limits, as well as optional protection you may have purchased.
Take time to read through your policy declarations and reach out if you have any questions. Understanding your policy and what is and isn't covered is key to knowing what to expect in case you ever need to file a claim.
Commercial auto insurance FAQs
What is the difference between commercial and business auto insurance, what is the difference between a commercial vehicle and a private vehicle, can i use a commercial vehicle for private use, who is covered to drive my commercial vehicle, do i need business insurance to claim mileage, still need help.
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