Commercial Auto Insurance — What It Covers & What It Costs
Covers vehicles used for business purposes — from delivery vans to company fleets.
Get Your Free Quote$1,200–$3,600/yr
Average Cost
4
Key Benefits
4
Related Coverages
Businesses that own vehicles or have employees who drive for work
Best For
Understanding Commercial Auto Insurance
Commercial auto insurance covers vehicles owned or used by a business. This includes company cars, delivery vans, trucks, service vehicles, and any vehicle used primarily for business purposes. Personal auto policies exclude business use, so if you or your employees drive for work, commercial coverage is essential.
Commercial auto policies typically offer higher liability limits than personal policies (often $1 million or more) because businesses face greater exposure in accidents. They can cover a single vehicle or an entire fleet, and they include options like hired and non-owned auto coverage for employees using their own cars for business errands.
The cost depends on factors like the number of vehicles, their types, what they carry, how far they're driven, employee driving records, and the nature of your business. Industries with higher accident risk (delivery, construction, trucking) pay more. Many businesses bundle commercial auto with a Business Owners Policy (BOP) for better rates.
Key Benefits
- Higher liability limits to protect business assets
- Covers company-owned vehicles and employee drivers
- Hired and non-owned auto coverage available
- Fleet discounts for multiple vehicles
Limitations to Know
- More expensive than personal auto insurance
- Employee driving records affect premiums
- Specialized vehicles may need additional endorsements
- Does not cover personal use of company vehicles
Frequently Asked Questions
What is commercial auto insurance?
Commercial auto insurance covers vehicles owned or used by a business. This includes company cars, delivery vans, trucks, service vehicles, and any vehicle used primarily for business purposes. Personal auto policies exclude business use, so if you or your employees drive for work, commercial coverage is essential.
How much does commercial auto insurance cost?
Commercial Auto Insurance typically costs $1,200–$3,600/yr. Your actual rate depends on factors like your driving record, location, vehicle, age, and credit score. Comparing quotes from multiple carriers is the best way to find the lowest rate.
Do I need commercial auto insurance?
Businesses that own vehicles or have employees who drive for work. Higher liability limits to protect business assets. Consider your vehicle's value, your financial situation, and whether your lender or state requires this coverage.
How does commercial auto insurance work?
Commercial auto policies typically offer higher liability limits than personal policies (often $1 million or more) because businesses face greater exposure in accidents. They can cover a single vehicle or an entire fleet, and they include options like hired and non-owned auto coverage for employees using their own cars for business errands.
Find the Best Rate for Commercial Auto Insurance
Compare quotes from 40+ carriers in minutes. Free, no-obligation quotes from licensed agents.
Get Your Free Quote