Guide to Commercial Car Insurance in New Jersey (2025)
NJM, State Farm, and USAA are some of the best insurers offering commercial auto coverage to New Jersey business owners.
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Written bySarah Sharkey
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7+ years writing insurance and personal finance content
Contributor to top media, including USA Today
A passionate personal finance advocate, Sarah’s writing has graced the pages of many of the personal finance and insurance industries’ top web publications.
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Edited bySara Getman
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Sara Getman is an Associate Editor at Insurify and has been with the company since 2022. Prior to joining Insurify, Sara completed her undergraduate degree in English Literature at Simmons University in Boston. At Simmons, she was the Editor-in-Chief for Sidelines Magazine (a literary and art publication), and wrote creative non-fiction.
Outside of work, Sara is an avid reader, and loves rock climbing, yoga, and crocheting.
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Table of contents
When operating a vehicle for business purposes in New Jersey, it’s critical to have the appropriate auto insurance. In many cases, this means you’ll need a commercial car insurance policy, which comes with significantly higher liability limits than a minimum-coverage personal policy.
Here’s what you need to know about buying commercial car insurance in New Jersey, including insurance requirements.
Quick Facts
Recent legislation increased the minimum liability requirement for commercial vehicles with gross weight ratings of 26,001 pounds or more to $1.5 million.
For commercial vehicles with gross weight ratings between 10,001 and 26,001, the minimum liability coverage requirement is $300,000.
The cost of commercial insurance in New Jersey ranges from $250 to $1,340 per month depending on the kind and number of vehicles you need insurance for.
Commercial car insurance requirements in New Jersey
When you use a vehicle primarily for business purposes, you’ll need to carry a commercial car insurance policy.
Business owners need to purchase commercial auto insurance for any company vehicles. This might include fleets of trucks, buses, vans, or even a single delivery sedan. Additionally, self-employed drivers who use their vehicles to transport passengers may need commercial auto insurance in New Jersey.
If you occasionally use your personal vehicle for business activities, you may or may not need commercial auto insurance. Reach out to the insurance company that issued your personal auto insurance policy to determine if its coverage is sufficient for your limited business uses.[1]
Recently, the Garden State passed a new law changing the insurance rules for the state and increasing the commercial automobile liability coverage requirements.
As of July 1, 2024, commercial vehicles with gross weight ratings of 26,001 pounds or more and cabs must carry at least $1.5 million in liability coverage. For commercial vehicles with gross weight ratings between 10,001 and 26,001, the minimum liability coverage requirement is $300,000.[2]
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Optional commercial auto insurance coverages
Bodily injury liability coverage and property damage liability coverage only help you pay for damages and injuries you or your employees cause to others. But this type of coverage won’t help pay for repairs to your vehicle.
Beyond bodily injury and property damage coverage, you can purchase add-on policies to better protect your wallet against potential risks. Some of these optional coverage types include:[1]
Comprehensive
After a covered event causes damage to your vehicle, like a natural disaster or theft, comprehensive coverage helps pay to repair or replace your vehicle.
Collision
If an accident leads to vehicle damage, collision coverage helps you repair or replace your own vehicle.
Medical payments or personal injury protection (PIP)
Medical payments or personal injury protection may reimburse you for medical bills related to injuries you or your passengers receive in an accident.
Uninsured/underinsured motorist
If a driver without insurance causes damage to your vehicle or injures you, UM/UIM coverage can help cover the difference and pay for your repair costs or medical bills.
Hired and non-owned auto
If you use personal vehicles occasionally for work purposes, you might need HNOA coverage in addition to your personal auto insurance policy.
Roadside assistance
Roadside assistance coverage can help you get back on the road after a breakdown. Roadside assistance is especially helpful for flat tires, dead batteries, and towing.
Rental car reimbursement
After an accident, rental car reimbursement can help you pay for a rental car to get around while your vehicle is in the shop.
Best commercial car insurance companies in New Jersey
The best commercial car insurance company for you varies based on your situation. But across the insurance market, some auto insurance companies tend to offer better solutions than others.
Based on rating factors like coverage options, pricing, relevant discounts, customer service, claims satisfaction, scores from rating organizations, and more, the following companies represent some of the best choices for commercial car insurance in New Jersey.
NJM: Best for customer satisfaction
customer satisfaction
NJ Manufacturers
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NJM is a regional insurance company with a reputation for customer satisfaction in the insurance market. The insurer boasts the highest customer satisfaction rating in the 2025 J.D. Power U.S. Auto Insurance Study, an excellent Trustpilot rating, and very few complaints with the National Association of Insurance Commissioners (NAIC). The positive feedback from customers could make NJM the right fit for drivers seeking a hassle-free experience.
Pros
Top-tier customer satisfaction ratings
Offers roadside assistance in both the U.S. and Canada
AM Best financial strength rating of A+
Cons
Customer service not available 24/7
Rates might not be the cheapest
No live chat customer service
State Farm: Best for extensive coverage options
extensive coverage options
State Farm
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State Farm, the largest insurance company in the U.S., offers commercial auto insurance to New Jersey drivers. Cars, pickup trucks, box trucks, flatbeds, farm vehicles, and vans are some of the vehicle types this insurance giant insures for commercial use.
Beyond baseline coverage, State Farm offers a wide selection of optional coverages to help business owners build out an optimal policy for their situation. Uninsured motorist, hired car, and medical payments are just a few of the optional coverages available.
Pros
Above-average J.D. Power customer satisfaction rating
AM Best financial strength rating of A++
Ample coverage add-ons
Cons
More-than-expected number of NAIC complaints
May not be the cheapest insurer
Low Trustpilot ratings
USAA: Best for veterans
veterans
USAA
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New Jersey is home to more than 60,000 veteran-owned businesses, many of which likely operate vehicles for work purposes. USAA offers commercial auto insurance in the Garden State. The catch is that USAA is available only to military members, employees of certain federal agencies, veterans, and their family members. If you qualify to work with this company, the top-tier customer satisfaction ratings might make USAA a great fit.
Pros
Above-average J.D. Power customer satisfaction rating
AM Best financial strength rating of A++
Tends to offer cheap rates
Cons
Membership restrictions
Fewer discounts than competitors
Poor Trustpilot ratings
Our editorial team analyzed regional and national auto insurance companies that sell commercial policies in New Jersey to assess which offer the best rates, coverage options, customer service, and savings to drivers. We prioritized competitive rates, 24/7 customer service, and specialty or supplemental coverages.
Average cost of commercial car insurance in New Jersey
As with personal auto insurance, commercial car insurance costs vary based on your situation. Generally, a commercial auto insurance policy in New Jersey costs between $250 and $1,340 per month.
The exact costs you’ll face within that large range depend on details like the vehicle you drive, your and your employees’ driving records, claims history, coverage selections, location of the business, and how often you use the vehicle.
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What business owners should know about commercial auto insurance in New Jersey
As a business owner considering a commercial auto insurance policy, it’s helpful to start with an assessment of your risk exposures. Generally, operating larger fleets of delivery vehicles in a busy urban area comes with more risk than operating a single pickup truck in a rural location. Insurance companies typically compensate for more risk with higher insurance premiums.
When exploring your options, you’ll likely see that commercial auto insurance tends to cost more than a personal policy. In part, you can attribute the higher costs to the fact that commercial auto insurance policies have higher liability limits than personal policies in the Garden State.[2]
Good to Know
One bit of good news for business owners is that commercial auto insurance premiums may be tax-deductible if they’re a normal part of your operating costs. For example, paying for automobile insurance coverage for your trucking business is likely a tax-deductible expense.[3]
How to get commercial car insurance in New Jersey
If you need to purchase a commercial automobile insurance policy, follow these steps:
Evaluate your coverage needs. Determine what type of coverage you need, what add-ons you want, and the coverage limits you have in mind.
Shop around. With an idea of your coverage needs, compare insurance quotes across multiple companies to find the most affordable option for your unique situation.
Seek out additional savings. Some auto insurance companies offer discounts that could reduce your premiums. Additionally, consider raising your deductible to an amount you can afford in order to tap into lower rates.
Purchase a policy. You’ll typically finalize an auto liability policy by paying for either all or part of your premium up front.
Commercial auto insurance in New Jersey FAQs
If you have questions about commercial auto insurance in New Jersey, the following answers may help.
Do you need commercial car insurance in New Jersey?
Yes. If you primarily use a vehicle for business activities, you’ll need to purchase commercial car insurance for it.
How much does commercial car insurance cost in New Jersey?
Commercial car insurance costs vary based on your situation. But, in general, drivers pay between $250 and $1,340 per month for commercial auto insurance in New Jersey.
What is the best company for commercial auto insurance?
NJM is one of the best insurance companies offering commercial auto insurance in New Jersey. It’s a local company that has very high customer satisfaction scores.
Does NJM offer commercial auto insurance?
Yes, NJM offers commercial auto insurance.
What are the requirements for commercial auto insurance in New Jersey?
Commercial vehicles with gross weight ratings of 26,001 pounds or more and cabs must carry at least $1.5 million in liability coverage. For commercial vehicles with gross weight ratings between 10,001 and 26,001, the minimum liability coverage requirement drops to $300,000.
Sources
- III. "Business Vehicle Insurance."
- State of New Jersey. "NEW MINIMUM LIMITS OF LIABLITY INSURANCE COMMERCIAL MOTOR VEHICLE AND/OR AUTOCABS."
- IRS. "Tax Guide for Small Business."
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Sarah SharkeyInsurance Writer
Sarah Sharkey is a personal finance writer who enjoys helping people make savvy financial decisions. She covered insurance and personal finance topics. You can find her work on Business Insider, Money Under 30, Rocket Mortgage, Bankrate, and more. Connect with her on LinkedIn.
Sarah has been a contributor at Insurify since September 2022.
Sara Getman is an Associate Editor at Insurify and has been with the company since 2022. Prior to joining Insurify, Sara completed her undergraduate degree in English Literature at Simmons University in Boston. At Simmons, she was the Editor-in-Chief for Sidelines Magazine (a literary and art publication), and wrote creative non-fiction.
Outside of work, Sara is an avid reader, and loves rock climbing, yoga, and crocheting.