How Much Is Commercial Auto Insurance? (2025)

Commercial auto insurance protects company-owned vehicles and the employees who drive them. The exact costs can vary depending on the vehicle type, coverage limits, employee driving records, and other risk factors.

Here’s what you need to know about commercial auto insurance, including average costs, rate factors, and ways to lower your premiums.

Average cost of commercial auto insurance

Commercial auto insurance provides coverage for any vehicles your business owns. It covers property damage or medical costs if an employee has an accident while driving a company-owned vehicle.^[1]

On average, business auto insurance costs range between $220 and $1,200 per month, based on Insurify data. This range is pretty wide because a variety of factors can affect your premiums, like your industry and driving history.^[2] Plus, different types of vehicles — like cars, trucks, vans, and box trucks — have different insurance costs. Policy pricing also depends on your company’s business practices and insurance needs.

For example, a catering company that operates multiple vans to transport food and other equipment may have higher premiums due to the frequent driving and heavier vehicle loads. In comparison, a landscaping company with a single truck that travels locally may pay less for coverage.

The table below outlines commercial auto cost ranges by state.

State	Average Monthly Cost Range
Alaska	$130–$700
Alabama	$160–$860
Arizona	$190–$1,040
Arkansas	$220–$1,190
California	$260–$1,400
Colorado	$240–$1,310
Connecticut	$350–$1,910
Delaware	$270–$1,500
Florida	$250–$1,370
Georgia	$290–$1,590
Hawaii	$140–$760
Idaho	$130–$720
Illinois	$190–$1,020
Indiana	$160–$860
Iowa	$130–$720
Kansas	$180–$960
Kentucky	$230–$1,270
Louisiana	$260–$1,410
Maine	$170–$910
Maryland	$360–$1,990
Massachusetts	$180–$990
Michigan	$270–$1,470
Minnesota	$210–$1,130
Mississippi	$180–$980
Missouri	$210–$1,170
Montana	$170–$950
North Carolina	$100–$560
North Dakota	$140–$780
Nebraska	$180–$970
Nevada	$310–$1,680
New Hampshire	$120–$630
New Jersey	$250–$1,340
New Mexico	$170–$920
New York	$320–$1,770
Ohio	$140–$780
Oklahoma	$200–$1,110
Oregon	$180–$960
Pennsylvania	$190–$1,030
Rhode Island	$250–$1,360
South Carolina	$290–$1,570
South Dakota	$150–$810
Tennessee	$160–$890
Texas	$260–$1,420
Utah	$180–$1,010
Vermont	$170–$900
Virginia	$220–$1,180
Washington	$200–$1,080
Washington, D.C.	$380–$2,050
Wisconsin	$140–$780
West Virginia	$180–$960
Wyoming	$130–$690

Factors that affect commercial auto insurance rates

Business auto insurance rates depend on a variety of risk factors, and no two companies will charge the same premiums. Insurers consider your business type, fleet size, and coverage needs to determine your insurance premiums. Here’s a look at the factors that can influence your rates.

Fleet size

Your fleet size plays a significant role in determining your vehicle insurance costs. Insuring one vehicle is generally less expensive than insuring multiple vehicles. A large fleet presents more opportunities for accidents and filing claims, which means the risk to your insurance company is higher.

Some insurers may offer bundled insurance coverage for fleets and provide discounts for insuring multiple vehicles. These policies can help you reduce your costs while keeping all your business vehicles covered under one plan.

Types and levels of coverage

Your coverage type and amount of insurance coverage can also affect your premiums. Most commercial auto policies include auto liability coverage, collision, comprehensive, and medical payments coverage, with the option to add roadside assistance or an umbrella policy.

Higher coverage limits will likely increase your premiums, while choosing higher deductibles could reduce your costs. It’s important to tailor your coverage levels to your company’s specific needs, as businesses with more risk exposure need broader coverage.

Driving history and location

Your employees’ driving records also affect your commercial auto insurance premiums. Employees with clean driving histories are less risky to insure, while having accidents or speeding tickets in your history can increase your premiums.

Your company’s location also matters. Businesses in busy urban areas often face higher insurance costs than those in less congested areas. Your location can also affect the availability of coverage.

Types of vehicles

The types of vehicles your business operates can also influence your insurance pricing. Smaller vehicles are typically less expensive to insure than heavy-duty trucks. For example, a box truck insurance policy may cost more than coverage for a standard van due to the potential for higher repair costs.

Type of business

Different industries also have different levels of risk. For instance, construction companies that operate heavy trucks and transport materials tend to be riskier than florists who use passenger vans for local deliveries. The number of employees driving company vehicles also affects your premiums, as more drivers mean more exposure to accidents and potential claims.

Cheapest commercial auto insurance companies

When you’re shopping for commercial auto insurance, you want to find low premiums that still meet your business’s coverage needs. The most affordable companies offer competitive pricing along with protection like property damage liability coverage and collision coverage.

The table below outlines several of the cheapest auto insurance companies with the lowest average rates for personal auto policies. Though these rates aren’t specifically for commercial coverage, the insurers likely offer affordable commercial coverage as well.

Insurance Company	Average Cost: Liability Only	Average Cost: Full Coverage
Allstate	$73	$137
Farmers	$110	$214
GEICO	$94	$138
Nationwide	$95	$179
Progressive	$101	$175
State Farm	$56	$110
The Hartford	$166	$245
Travelers	$99	$186
USAA	$52	$98

How to save on your commercial auto insurance policy

With the right strategies, it’s possible to lower your commercial auto insurance costs. Here are the best tips that can help you earn more affordable insurance rates:

• 

  Bundle policies

  Combine your commercial auto insurance with other business policies, like general liability or a business owners policy, to qualify for multi-policy discounts.

• 

  Increase your deductible

  Choosing a higher deductible can lower your monthly premiums, but make sure your business can afford the out-of-pocket cost in the event of a claim.

• 

  Maintain good driving records

  Encourage your employees to adopt safe driving practices to avoid accidents and traffic violations.

• 

  Install safety devices

  Adding safety devices — like GPS trackers, anti-theft systems, and dash cameras — could help you qualify for a discount.

• 

  Compare multiple quotes

  The quote process can be tedious, but exploring your fleet vehicle coverage options and requesting multiple auto insurance quotes can help you find affordable rates while also evaluating each insurer’s industry reputation.

Average cost of commercial auto insurance FAQs