Ben Luthi has been writing about personal finance for over a decade with the intent to help people improve their finances and lifestyle. He’s covered just about every personal finance topic under the sun for a variety of publications, including the Wall Street Journal, Fortune Recommends, Yahoo Finance, Experian, Credit Karma, NerdWallet, and many more. Ben lives near Salt Lake City with his two kids and two cats.
Evelyn PimplaskarEditor-in-Chief, Director of Content
10+ years in insurance and personal finance content
30+ years in media, PR, and content creation
Evelyn leads Insurify’s content team. She’s passionate about creating empowering content to help people transform their financial lives and make sound insurance-buying decisions.
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Commercial auto insurance provides financial protection for business owners and the vehicles they operate. You can often find coverage through standard auto insurance companies. But costs can vary widely depending on the type of business you own, how many vehicles you need to cover, and other factors.
You may need commercial auto insurance if your business owns or operates vehicles primarily for business purposes. As you evaluate your options, here’s what to know about the cost of coverage and steps you can take to maximize your savings.
Quick Facts
Commercial auto insurance typically costs more than personal auto insurance, largely due to higher liability limits.
Coverage options often include liability, collision, comprehensive, medical payments, and uninsured/underinsured motorist coverage.
You may need commercial auto coverage if you use a business-owned vehicle or own a personal vehicle you use primarily for business purposes.
How much commercial auto insurance costs
In general, commercial car insurance coverage costs more than personal auto insurance, primarily because it offers higher coverage limits — particularly for liability insurance.
You’ll typically need at least a minimum amount of liability coverage, as determined by your state. Depending on your business’ level of risk, you’ll likely need more liability coverage than state requirements. For example, you may expect to pay more if your small business provides for-hire truck work or towing services.
You may also need additional types of coverage that can increase the overall cost of your commercial auto insurance. If you financed or leased a vehicle, your lender or leasing company may also require you to maintain collision and comprehensive insurance.
You may also decide you need other options like medical payments coverage and uninsured/underinsured motorist coverage.
How to find the cheapest commercial auto insurance
If you need a commercial vehicle insurance policy for your business, here are some ways you can save as much money as possible:
Shop around. Each insurance company has its own process for determining rates, so it’s crucial that you shop around andcompare quotes from multiple insurers.
Look for discounts. Some insurance companies may offer a handful of discounts that can help keep your costs down. As you shop around, check for potential savings tailored to your business needs.
Get the right coverage. Understanding your needs can help you ensure that you don’t pay for unnecessary coverage.
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Factors that influence the cost of commercial auto insurance
Several factors can influence how much you pay for vehicle business insurance, including where you operate your business, your and your employees’ driving records, the number and types of vehicles your business uses, and your coverage limits.[1]
Other potential contributors to the rate you receive include your business claims history and your business credit score.
The type of work
The type of work your small business does often dictates how you use your vehicles and how much time you spend on the road. As a result, some businesses may naturally have higher insurance costs than others.
The number of vehicles
The more vehicles your business owns, the more you can expect to pay for your commercial auto policy. Note that this includes employee-owned vehicles they may occasionally use for work purposes.
The location
Insurance risks can vary depending on where you live. For example, you may face higher rates if you operate your business in an urban area where traffic can be more congested.[2] Additionally, states have different liability limits and other requirements, which can influence your premiums.
The coverage limits
The more insurance you need for injury and property damage coverage, collision and comprehensive protection, and other types of coverage will help dictate what you pay.
If you’re a business owner, you need commercial car insurance for any vehicle you use primarily for business purposes, regardless of the size of your business. This applies to personal vehicles, as well as vehicles your business owns.
If you have a personal vehicle you only occasionally use for your business, you may be able to rely on your personal auto insurance policy. But it’s best to contact your insurance company’s customer service team to verify your coverage.
Commercial vehicle insurance commonly includes the following types of coverage:
Liability coverage
Liability coverage helps pay for bodily injuries and property damage resulting from an accident you caused. You may be able to choose separate limits or a combined single limit for all liability claims. Note that you may be able to increase your liability coverage through your business’ general liability policy if you include your auto insurance policy as underlying coverage.
If a non-collision event — such as fire, theft, or vandalism — damages your business vehicle, comprehensive insurance can help pay for the damages.
Medical payments coverage
This coverage can help pay medical bills for injuries you or your passengers sustain in an accident, regardless of who’s at fault.
Uninsured/underinsured motorist coverage
UM/UIM provides coverage for your bodily injuries and property damages if another driver who has no insurance or insufficient insurance causes an accident.
What types of vehicles does commercial auto insurance cover?
You may be able to purchase commercial auto coverage for a wide range of vehicles, including:
Cars
Box trucks
Food trucks
Work or delivery vans
Utility vehicles
If you own a long-haul trucking business, you may need a more specialized form of commercial auto insurance.[3][4]
What does commercial auto insurance not cover?
Commercial auto insurance typically won’t cover accidents that occur in your or an employee’s personal vehicle when driving for personal reasons. You also likely won’t have coverage for any belongings left in the vehicle that are damaged or stolen.
Additionally, some insurers may restrict other types of vehicles, such as tractors, golf carts, emergency vehicles, rental vehicles, and power shovels.
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Personal auto vs. commercial auto insurance
Your personal auto insurance may provide sufficient coverage for your personal vehicle if you only occasionally use it for business purposes. But any vehicle registered to your business must have a commercial auto policy. The same is true for personal vehicles used primarily for business reasons.
But it’s not always cut and dry. For example, if you do gig work, such as grocery or food delivery or ridesharing, you may need a rideshare endorsement on your personal policy or a separate commercial insurance policy.[5]
If you’re unsure whether you’re covered with your personal policy, contact your insurance company to ask about potential restrictions and limitations.
Commercial auto insurance FAQs
If you’re thinking about buying commercial auto insurance for your business, here are some answers to common questions that may come up during the process.
Which company has the best commercial auto insurance?
No insurance company offers the best coverage for all types of businesses and vehicles. As a result, it’s important to shop around and obtain insurance quotes from multiple companies to find the best possible deal.
Is commercial auto insurance cheap?
The cost of commercial vehicle coverage can vary based on several factors. But commercial insurance tends to be more expensive than personal auto insurance, primarily due to higher liability limits.
Is GEICO good for commercial insurance?
GEICO is one of many major insurers that offer commercial insurance. It has a very high rate of complaints from commercial auto insurance customers, according to the National Association of Insurance Commissioners Company Complaint Index. As you shop around for coverage, consider obtaining a quote from GEICO to see if it can be a good fit for your business.
How do you find the cheapest semi-truck insurance?
Semi-truck insurance is a specialized type of commercial auto insurance, but many of the same savings tips apply. Research and compare rates, coverage, discounts, and other features from multiple insurers to find the best policy for you.
Ben Luthi has been writing about personal finance for over a decade with the intent to help people improve their finances and lifestyle. He’s covered just about every personal finance topic under the sun for a variety of publications, including the Wall Street Journal, Fortune Recommends, Yahoo Finance, Experian, Credit Karma, NerdWallet, and many more. Ben lives near Salt Lake City with his two kids and two cats.
Evelyn PimplaskarEditor-in-Chief, Director of Content
10+ years in insurance and personal finance content
30+ years in media, PR, and content creation
Evelyn leads Insurify’s content team. She’s passionate about creating empowering content to help people transform their financial lives and make sound insurance-buying decisions.
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