Guide to Commercial Car Insurance in Louisiana (2025)

Many businesses depend on cars and other vehicles for visiting clients, making deliveries, and other business errands. When you or your employees are on the road for work in Louisiana, it can expose your business to significant liability risks. A commercial car insurance policy can help you stay covered.

Here’s what you need to know about commercial auto insurance in Louisiana, including who needs it and why, what it costs, and how to find the right policy for your needs.

Commercial car insurance requirements in Louisiana

Louisiana business owners need liability coverage for commercial vehicle use. You’ll need commercial coverage if your business owns a fleet of box trucks, you drive for a rideshare company, or you just make occasional work-related trips in your personal vehicle.

Business auto insurance is important because personal auto policies often exclude work-related activity.^[1] And even if your personal policy covers you while at work, the liability coverage may be insufficient.

Louisiana’s minimum limits for auto insurance liability include the following:^[2]

• Bodily injury liability: $15,000 per person and $30,000 per accident

• Property damage liability: $25,000 per accident

These auto insurance requirements apply to all Louisiana vehicles. But they may not be high enough to cover damages in the event of an accident. Once damages exceed the liability coverage limits on your personal policy, your business may face a lawsuit to cover the rest. It’s a good idea to purchase higher liability limits and additional coverage.

Large trucks, semitrucks, limousines, and specific business activities often require special endorsements or separate policies for full coverage.

The Federal Motor Carrier Safety Administration also requires businesses to purchase higher amounts of commercial vehicle insurance for vehicles that cross state lines. These required limits range from $750,000 to $5 million, depending on the cargo and vehicle types in your fleet.^[3]

Optional commercial auto insurance coverages

Optional coverages for commercial vehicle insurance are similar to the add-ons you’ll find in a standard personal auto policy:

• 

  Comprehensive and collision

  Comprehensive insurance covers theft, vandalism, and other damage to your vehicle while it isn’t moving. Collision insurance protects your car in an accident, regardless of fault.

• 

  Medical payments

  Medical payments coverage pays medical bills and funeral expenses for anyone in your car who incurs an injury during an accident, regardless of fault.

• 

  Uninsured/underinsured motorist (UM/UIM)

  UM/UIM coverage provides insurance for your car and bodily injury if an uninsured or underinsured motorist causes an accident.

• 

  Hired and non-owned auto (HNOA)

  Hired and non-owned auto insurance protects you while driving cars your business rents or hires out but doesn’t own, including your and your employees’ personal vehicles.

• 

  Roadside assistance

  Roadside assistance can help you if you get stranded due to a problem with your car.

• 

  Rental reimbursement

  Rental reimbursement coverage pays for renting a replacement car to drive while the shop does repairs for an approved claim.

Do you need commercial car insurance in Louisiana?

If you never drive for work or use a car for any business activity, you probably don’t need a commercial car insurance policy.

But if you use a car during any period of your active workday, you should consider a commercial auto liability insurance policy. This applies if your business owns its own car or if you or your employees frequently use personal cars on business errands.

Let’s say you’re a baker who delivers your bread to restaurants. If you or an employee has an accident while you’re making deliveries, the driver’s personal car insurance probably won’t cover the accident. And even if it does, your bakery could face a lawsuit for damages.

If you primarily use your car as a work vehicle, you should probably get a business auto policy to cover you while you’re driving.

Best commercial car insurance companies in Louisiana

The best insurer will depend on your coverage needs, as well as your fleet size, vehicle types, and more. Here are three of the best commercial auto insurers in Louisiana.

Progressive: Best for trucks and trailers

State Farm: Best for customer service

Travelers: Best for large companies and fleets

Average cost of commercial car insurance in Louisiana

Louisiana commercial car insurance costs between $260 and $1,410 per month on average, according to Insurify data. Your auto insurance company sets premiums based on the risks associated with your type of business, the number of vehicles you have, the value of your vehicles, and other factors.

The more time you spend on the road for your business, the more you’ll have to pay. Van insurance and fleet insurance, along with liability coverage for box trucks and other larger, more expensive vehicles, will demand higher premiums.

Commercial truck insurance for semitrucks and long-haul businesses sometimes requires separate, specialized liability coverage.

What business owners should know about commercial auto insurance in Louisiana

Commercial auto insurance is generally more expensive than a personal liability policy because of its higher liability coverage limits.

You should tailor your liability coverage to the risks involved in your business operations, whether you have a large fleet, work with inexperienced drivers, or put heavy mileage on your cars.

Liability coverage usually doesn’t apply to situations where you’re intoxicated, breaking the law, or using your work vehicle for personal use.

If an accident occurs, you’ll initiate a claim with your insurance company online or over the phone. To file the claim, you fill out the necessary paperwork documenting the incident. Soon after, the insurance company will review your claim and pay it out, minus your deductible, if it approves the claim.

Keep in mind that since it’s a business expense, you may be able to deduct premiums for your commercial auto insurance policy from your taxes.^[4]

How to get commercial car insurance in Louisiana

If you’ve determined that your business needs commercial auto insurance, follow these steps to buy a policy:

1. Evaluate your insurance needs. This process will be different for each business. The scope of coverage and liability limits that are right for you will depend on the frequency and purpose of your vehicle use, the number of vehicles involved, and other factors.

2. Research insurers. Take some time to learn about the companies that offer commercial auto insurance in your area. Their reputations will vary, and so will premiums, add-ons, customer service, and other attributes.

3. Compare quotes. Don’t just buy the first policy you see. Make sure you get quotes from at least three insurance companies before you purchase a business auto policy.

4. Read your declarations page and discuss your new policy with an agent. Once you’re on the verge of purchasing a business auto liability policy, inspect it thoroughly. Make sure you understand the policy terms and coverage exclusions.

5. Put your insurance cards inside your vehicle. Always drive with proof of liability coverage close at hand.

Commercial auto insurance in Louisiana FAQs