Commercial Auto Insurance
Vehicle coverage for business-owned cars, trucks, and fleets.
Typical cost: $1,200 – $10,000+ per vehicle per year
What Is Commercial Auto Insurance?
Commercial auto insurance covers vehicles owned by a business or used for business purposes. Personal auto policies exclude business use, meaning any vehicle regularly used for work—from company cars to delivery trucks—needs commercial coverage.
Who Needs It
Any business that owns vehicles, has employees who drive for work, uses vehicles to transport goods, or provides transportation services needs commercial auto. This includes company cars, service vehicles, food trucks, delivery vans, and trucks.
Hired and Non-Owned Auto
If employees use personal vehicles for business or your company rents vehicles, you need hired and non-owned auto coverage. This fills gaps when business use occurs in vehicles not owned by your company.
What's covered
Liability Coverage
Covers bodily injury and property damage you cause to others in an accident.
Collision Coverage
Pays to repair or replace your vehicle after a collision regardless of fault.
Comprehensive Coverage
Covers theft, vandalism, weather damage, and other non-collision losses.
Medical Payments
Pays medical bills for driver and passengers regardless of fault.
Uninsured Motorist
Protects you if hit by a driver without adequate insurance.
Cargo Coverage
Covers goods and equipment being transported in your vehicles.
Hired/Non-Owned Auto
Covers rented vehicles and employee-owned vehicles used for business.
Pros and cons
Advantages
- Protects business assets used on the road daily
- Required coverage for most commercial operations
- Covers multiple drivers under one policy
- Hired/non-owned fills gaps for employee vehicles
- Higher liability limits available than personal auto
- Fleet discounts for multiple vehicles
Considerations
- More expensive than personal auto insurance
- Premiums based on vehicle type, driver records, and use
- MVR checks on all drivers can complicate hiring
- Business use increases exposure and premiums
- Cargo may require separate inland marine coverage
Frequently asked questions
Related coverage
Bundled coverage combining general liability and commercial property insurance.
Core business protection against third-party bodily injury and property damage claims.
Errors & omissions coverage for professionals providing advice or services.
Coverage for businesses that manufacture, distribute, or sell products.
Required coverage for employee work-related injuries and illnesses.
Protection against data breaches, cyberattacks, and digital liability.
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