Business Insurance
Commercial Auto Insurance
Commercial auto insurance covers vehicles owned or used by your business, from a single work truck to a full fleet. It typically includes liability coverage plus physical damage protection for the vehicles themselves.
What is Commercial Auto Insurance?
Commercial auto insurance covers vehicles used for business purposes. It typically includes liability coverage for injuries or property damage your drivers cause to others, along with collision and comprehensive coverage for damage to your own vehicles.
Personal auto policies generally exclude business use, so businesses that rely on trucks, vans, or cars for work often need a commercial policy. Many contracts and job sites also require proof of commercial auto coverage before vehicles come on site.
Key Benefits
Common Uses for Commercial Auto
Work trucks and vans
Vehicles that carry crews, tools, and materials to jobs
Accident liability
A business driver causes injury or property damage
Vehicle damage
Collision, theft, or weather damage to business vehicles
Contract requirements
Clients or job sites require proof of auto coverage
What Commercial Auto Typically Covers
Typically Covered
- Liability for injuries your drivers cause others
- Third-party property damage from accidents
- Collision damage to your own vehicles
- Comprehensive losses such as theft, vandalism, and weather
- Medical payments and uninsured motorist options
- Hired and non-owned autos, with an endorsement
Typically Not Covered
- Personal vehicles without business-use coverage
- Tools and cargo inside the vehicle (inland marine)
- Wear and tear and mechanical breakdown
- Intentional damage
- Employees' own cars without hired and non-owned coverage
Coverage varies by policy and provider. Review policy terms carefully before purchasing.
How It Works
Getting covered is simple, and it is free for business owners.
Tell Us About Your Business
Answer a few questions about your operations, team, and the coverage you are looking for.
Compare Quote Options
See coverage options from providers that work with businesses like yours.
Get Covered
Choose the option that fits, get your certificates, and move forward with your work.
How Much Does Commercial Auto Cost?
Many businesses pay between $1,200 and $3,000 per vehicle per year for commercial auto coverage. Heavier trucks, higher limits, and drivers with violations push premiums up, while clean records and higher deductibles may bring them down. Contracts often require $1 million combined single limits, which affects pricing. Comparing quotes from multiple providers may help.
What Affects Your Premium
- Number and type of vehicles
- Vehicle use, mileage, and travel radius
- Driver records
- Coverage limits and deductibles
- Claims history
- State and garaging location
Who Typically Needs Commercial Auto?
Frequently Asked Questions
Often, yes. Personal auto policies generally exclude business use, and a claim from a work-related accident may be denied under a personal policy. If you regularly haul tools, materials, or crews, or drive between job sites, a commercial auto policy is typically the appropriate coverage.
Commercial auto typically covers liability for bodily injury and property damage your drivers cause to others, plus collision and comprehensive coverage for damage to your own vehicles. Policies may also include medical payments, uninsured motorist coverage, and coverage for hired or non-owned vehicles.
Not automatically. Hired and non-owned auto coverage is a common add-on that helps cover liability when employees drive personal vehicles for business tasks. If your team runs errands, makes deliveries, or drives between sites in their own cars, it is worth discussing this coverage.
Premiums vary based on the number and type of vehicles, what they are used for, driver records, coverage limits, and your location. Heavier vehicles and higher-risk uses generally cost more to insure. Comparing quotes from multiple providers may help you find a fit for your budget.
Many commercial contracts and job sites require $1 million combined single limit (CSL) auto liability. General contractors and government work sometimes require more, met through higher base limits or an umbrella policy. Check your contracts before choosing limits.
Many commercial auto policies cover permitted personal use of a business-owned vehicle, but terms vary by policy and named drivers. If owners or employees regularly drive company vehicles off the clock, confirm how your policy treats that use.
Coverage guides by industry: Contractors & TradesTrucking & TransportationLandscaping & Lawn Care
Related Coverage Options
General Liability Insurance
Covers third-party bodily injury, property damage, and advertising claims.
Learn more →Inland Marine (Tools & Equipment)
Covers tools, equipment, and materials that move between job sites.
Learn more →Commercial Umbrella Insurance
Adds liability limits above your general liability and auto policies.
Learn more →Ready to Get Commercial Auto Coverage?
Find commercial auto options that may fit your vehicles, drivers, and the work you do.