Guide to Commercial Car Insurance in Arizona (2025)

If you own a business in Arizona and have company vehicles, you may need commercial auto insurance. Personal auto policies usually don’t cover accidents that happen while working, which can leave you with costly out-of-pocket expenses.

Here’s what you should know about Arizona’s commercial auto insurance requirements, optional coverages, and how to find a policy.

Commercial car insurance requirements in Arizona

All drivers need auto insurance, but if you drive specifically for work, you may need a commercial car insurance policy. That’s because your personal auto insurance policy typically won’t cover any accidents that happen when you’re driving for business-related tasks.^[1]

Arizona state law requires all drivers to meet the following coverage requirements:^[2]

• $25,000 in bodily injury liability per person

• $50,000 in bodily injury liability per accident

• $15,000 in property damage liability

But higher limits typically apply depending on the vehicle type and use. For example, trucks hauling freight, vehicles for hire, and limousines may be subject to stricter requirements under state or federal regulations.^[3] Meeting these minimum requirements ensures you stay compliant with Arizona law and protects you from costly out-of-pocket expenses if an accident occurs.

Optional commercial auto insurance coverages

Beyond the state’s liability requirements, many Arizona businesses choose additional protection to safeguard their operations. Common optional vehicle coverages include:

• 

  Comprehensive insurance

  Also known as “other than collision” coverage, this covers theft, vandalism, damage from natural disasters, and fallen objects like trees or branches.

• 

  Collision insurance

  Collision coverage pays for damages resulting from a collision with another car or object. It can also cover pothole damage.

• 

  Personal injury protection (PIP)

  PIP insurance covers medical expenses for you and your passengers after an accident. It may also cover lost wages or funeral expenses.

• 

  Uninsured/underinsured motorist

  Uninsured/underinsured motorist coverage protects you if a driver who has no insurance or who lacks sufficient insurance hits you.

• 

  Hired and non-owned auto (HNOA)

  This covers your personal vehicle if you use it for business purposes, like client meetings or deliveries.

• 

  Roadside assistance

  Roadside assistance provides help for breakdowns, flat tires, and towing.

• 

  Rental reimbursement

  This coverage pays for a rental car while your commercial vehicle is being repaired after a covered loss.

Do you need commercial car insurance in Arizona?

If you drive a vehicle for your business, you’ll likely need a commercial auto policy. This includes if you operate a company vehicle, use your personal car to deliver goods or transport clients, or run a business that depends on driving.

For example, a florist who owns a delivery van and a landscaper with multiple trucks both need commercial insurance. Rideshare, taxi, and delivery drivers also fall under special requirements.

On the other hand, if you use your car to commute to and from your job or occasionally run an errand, your personal auto insurance may be sufficient.

Best commercial car insurance companies in Arizona

Choosing business insurance coverage in Arizona involves weighing things like coverage, cost, claims support, and customer service. To make the decision easier, we’ve rounded up three of the best commercial insurance companies in Arizona.

State Farm: Best for flexible coverage

Nationwide: Best for telematics program

Travelers: Best for add-on coverage

Average cost of commercial car insurance in Arizona

In Arizona, drivers pay an average monthly rate between $190 and $1,040, which is below the national average. But many different factors can affect the cost of commercial auto insurance, so your actual monthly rate could be higher or lower.

Some businesses have more risk factors than others, so the type of business you run affects how much you pay for auto insurance. Your location, the driving records of your employees, and the vehicle types also play a role.

For example, if you own a construction company with many different types of vehicles, you’ll likely need more coverage and have a higher premium. If you run a catering business and have only one van, you won’t need as much insurance.

What business owners should know about commercial auto insurance in Arizona

Commercial auto insurance policies tend to have higher premiums than personal policies because business vehicles usually face greater risks. For example, business vehicles tend to spend more time on the road and have higher liability.

As you’re shopping around for coverage, you should consider your fleet size and how often you use your vehicles. It’s also important to be aware of common exclusions, like personal use beyond policy limits or unlisted drivers. Understanding these details ensures your vehicle insurance policy fits your business needs.

How to get commercial car insurance in Arizona

Here are the steps you’ll take to find commercial auto insurance in Arizona:

1. Assess your coverage needs. Think about how you use your vehicles, how many drivers you have, and what level of auto liability protection makes sense for your business.

2. Gather your documents. Insurers will ask for information like your business license, vehicle identification numbers (VINs), driver records, and estimated annual mileage.

3. Customize your policy. Customize your policy with optional coverages, like hired and non-owner auto or cargo protection, if they apply to your business.

4. Compare quotes. Reach out to multiple insurers to compare coverages, limits, and pricing. This helps you find the best fit for your budget and business needs.

5. Continue to review your policy. Once you choose a policy, keep proof of insurance in each work vehicle and review your coverage annually as your business grows.

Commercial auto insurance in Arizona FAQs