Guide to Commercial Car Insurance in Colorado (2025)

Small businesses play a crucial role in Colorado: More than 700,000 small businesses operate in the Centennial State, employing nearly half of the state’s workforce.^[1]

If you run a small business in the state that uses a car, truck, or van for your work — or are getting ready to launch your own company — you’ll need a commercial auto policy. Having one will allow you to meet state and federal guidelines and protect your business assets.

Here’s what you should know about the requirements for commercial car insurance in Colorado, what to expect in terms of cost, and how to find the best insurance coverage.

Commercial car insurance requirements in Colorado

Whether you have a side hustle delivering groceries or run a business with a fleet of trucks, any business or person using a vehicle for company purposes will need a commercial auto policy that meets Colorado’s insurance minimums.^[3]

Colorado’s insurance requirements for businesses are the same as its requirements for personal use policies.^[4] As a business owner, you’ll need a commercial auto policy that meets these minimum requirements:

• $25,000 in bodily injury liability coverage per person

• $50,000 in bodily injury liability coverage per accident

• $15,000 in property damage liability coverage

Some Colorado businesses will need additional coverage. If you have vehicles that seat 15 or more passengers, own box trucks, or have other vehicles that transport goods or hazardous materials, you’ll need policies that satisfy these Federal Motor Carrier Safety Administration (FMCSA) regulations:^[5]

• Freight vehicles: $750,000 to $5 million of bodily injury, property damage, and environmental restoration coverage; $300,000 for non-hazardous freight vehicles weighing less than 10,001 pounds

• Passenger vehicles: $5 million of bodily injury, property damage, and environmental restoration coverage; $1.5 million for drivers who operate vehicles that seat only 15 or fewer passengers

Optional commercial auto insurance coverages

Liability coverage is the only form of commercial vehicle insurance that the state requires. But you may need additional coverage to protect your business. The following coverages could be appealing based on your circumstances:

• 

  Collision coverage

  Collision insurance pays for damages to your business vehicle if you’re in an accident. You may need collision coverage if you financed your vehicle.

• 

  Comprehensive coverage

  If a tree falls and damages your windshield, a thief steals your business vehicle, or another non-collision incident occurs, comprehensive insurance pays to repair or replace the vehicle.

• 

  Medical payments coverage

  Medical payments insurance pays for medical expenses for you and your passengers if you’re hurt in an accident.

• 

  Uninsured/underinsured motorist coverage

  Colorado has a much higher-than-usual percentage of uninsured drivers, so business owners should consider adding uninsured/underinsured motorist protection to their policies. This insurance helps cover your vehicle when a driver who is uninsured or lacks adequate insurance causes an accident.

• 

  Hired and non-owned auto (HNOA)

  If you rent, lease, or borrow a car for work — or if an employee uses their personal vehicle for business use — HNOA covers auto accidents that occur.

• 

  Roadside assistance

  If your vehicle breaks down or has a flat tire or a dead battery, roadside assistance can pay for towing or emergency assistance.

• 

  Rental reimbursement

  Rental reimbursement will cover the cost of renting a vehicle if your business car or truck is in the repair shop after an accident.

• 

  Cargo or equipment coverage

  This form of commercial auto insurance covers your tools, cargo, or materials if they’re stolen or damaged during transport.

• 

  Gap coverage

  If you finance a business vehicle with an auto loan or lease, you may need gap insurance. It pays the difference between what you owe on your loan and the vehicle’s value if it’s stolen or if the insurance company finds that it’s unrepairable after an accident.

Do you need commercial car insurance in Colorado?

In Colorado, you likely need a commercial car insurance policy if you fit into any of the following categories:

• You drive clients or employees.

• You deliver food, goods, or equipment.

• You drive a vehicle that’s titled under your business.

• You have employees who drive company cars.

You may not need a commercial auto policy in the following scenarios:

• You commute to and from work in your personal vehicle but don’t use it for business purposes (your personal auto insurance policy is likely sufficient).

• You run occasional errands for your boss in your own vehicle (you’ll likely have coverage through your employer’s HNOA policy).

• Your business is home-based and doesn’t require vehicle use.

Best commercial car insurance companies in Colorado

Here, you’ll find three of the best commercial car insurance companies in Colorado based on their coverage options, discounts, and customer service. Compare these insurers to find one that could be right for you.

Progressive: Best for discounts

Farmers: Best for new business vehicles

Colorado Farm Bureau Insurance Company: Best for coverage add-ons

Average cost of commercial car insurance in Colorado

In Colorado, you’ll pay anywhere from $240 to $1,310 per month for commercial auto coverage. Commercial car insurance policies vary widely based on the following factors:

• Business type: High-risk businesses, such as those in the trucking or construction industries, are more likely to file claims, so they pay more for coverage.

• Driving history: People with clean driving records will pay less for insurance.

• Typical vehicle use: Vehicles that haul expensive cargo or equipment will have much higher premiums.

• Location: Your location and ZIP code also affect your premiums. Areas with higher rates of accidents and crime will have a higher cost.

What business owners should know about commercial auto insurance in Colorado

In Colorado, as in other states, commercial auto policies are usually more expensive because business owners opt for higher liability coverage limits and because of higher business-specific risks.

Key considerations include:

• Risk: Your fleet size, driving frequency, mileage range, and cargo will affect what coverage you need and your cost.

• Typical exclusions: Most policies exclude vehicles used for personal use, unscheduled drivers, or intentional damage. If you’re concerned about repair costs for your vehicles after an accident, you’ll also need comprehensive and collision insurance, as a basic commercial auto liability policy excludes damages to your vehicle.

• Claims process: As a business owner, time is precious. You want an insurer that handles claims quickly and efficiently, so look for a company that has nearby agents and responsive customer support.

• Tax implications: Although commercial auto premiums can be expensive, your premiums may be tax-deductible, helping to offset the cost.

How to get commercial car insurance in Colorado

To purchase commercial auto insurance in Colorado, follow these steps:

1. Assess your business needs. Think about how you use your vehicles, how many drivers you have, and any other unique risks, such as transporting specialized equipment.

2. Gather information. You’ll need your vehicles’ odometer readings, vehicle identification numbers (VINs), and business registration documents.

3. Shop around. Get quotes from several companies, including both national and regional insurers.

4. Ask about discounts. Talk to your agent about potential discounts for your business to reduce your premiums.

5. Finalize your coverage. Double-check your policy coverage options, limits, and endorsements before signing your policy and paying your first premium.

Commercial auto insurance in Colorado FAQs