If you use your vehicles for work, you need to get a commercial auto insurance policy. Your personal auto insurance policy won’t cover the vehicles when you use for business. Commercial auto insurance is necessary when cars, trucks, or vans are used to conduct business. We cover everything you need to know about commercial auto insurance and recommend the 10 best commercial auto insurance companies for your consideration:
- Best 10 commercial auto insurance companies for small businesses
- What is commercial auto insurance?
- Who needs commercial auto insurance?
- How is commercial auto insurance different from personal auto insurance?
- How much does commercial auto insurance cost?
- How to get cheap commercial auto insurance?
- Commercial auto insurance in different states: Coverage requirements, cost, and best providers. Click on the state name below to learn more:
Best 10 Commercial Auto Insurance Companies for Small Businesses
Fortunately, there are several insurance companies with many years of experience that can help guide you on the right path. Below are some of the best insurance companies for writing commercial auto for small businesses.
- CoverWallet: Best for comparing online quotes
- Progressive: Best for special perks and benefits
- Geico: Best for customized commercial auto insurance policies
- Nationwide: Offers many custom pricing solutions for small businesses
- AAA: Best for free roadside service
- State Farm: Best for businesses with employees who drive their personal vehicles for work
- Allstate: Best for its Small Business Connection program
- USAA: Best for current or former military
- Liberty Mutual: Best for filing claims experience
- Infinity: Best for drivers with issues in their driving records
- Farmers: Best for food truck business
- Next: Best if you already have other business policies with Next
CoverWallet Commercial Auto Insurance : Best for comparing online quotes
CoverWallet is a digital broker specializing in small business insurance. They work with several business insurance companies. Once you provide your personal information, they will be able to provide you with several quotes from the company partners that they work with. This makes it easier for your to obtain and compare several quotes in one place, conveniently.
After buying a commercial auto insurance policy through CoverWallet, you can also manage the policy utilizing their great digital dashboard with a lot of useful features. If you also have other business insurance policies such as general liability, professional liability, or workers compensation, you can manage these policies on CoverWallet dashboard as well.
Progressive Commercial Auto Insurance: Best for special perks and benefits
Progressive– Progressive has a dedicated team to help small businesses with their auto insurance. A commercial auto insurance quote typically includes:
- Physical Damage
- Medical Payments
- Uninsured Motorist
- Hired Auto
- Non-Owned Coverage
- Any Auto
- All commercial coverages
In addition, Progressive has experts who can adjust your policy based on seasonal changes. This ensure low rates and consistent coverage no matter what time of year. Also, Progressive offers special benefits to small businesses. These include customized coverages, competitive rates, discounts, exceptional claims service, and more.
Progressive commercial auto insurance covers many different types of vehicles, including cars, light trucks, SUVs, vans and more. Small business customers can get perks such as discounts and access to network shops throughout the country. Progressive also covers trucks and trailers, as well as offering 24/7 claims service with their extensive truck repair network.
Geico Commercial Auto Insurance: Best for customized commercial auto insurance policies
Geico– Geico has over 70 years of experience in providing insurance and coverage to small businesses. Geico commercial auto insurance offers competitive rates, outstanding service, and flexible policies.
Geico’s claims experts work with customers one on one to ensure the lowest rates and the best coverage. They can also customize a commercial auto policy to meet the needs of your small business. This means they can change a policy based on the size, risk, and location of your company. Geico has a dedicated 24/7 claims line and a wide range of agents spread throughout the country. No matter where you’re located, Geico is a good bet for your small business.
Nationwide Commercial Auto Insurance: Offers many custom pricing solutions for small businesses
Nationwide’s robust commercial auto insurance covers injuries that you or your employees may cause to other people and their property while driving. It also covers several other forms of liability, including:
- Auto liability, protecting your small business from bodily injury or property damages as a result of a covered automobile accident
- Medical payments based on your coverage limit. This covers you, your employees and your passengers arising from motor vehicle accidents – regardless of who is at fault
- Comprehensive coverage to pay for damages to your vehicle from things other than a road accident, like vandalism theft, weather events, and accidents involving animals.
- Collision coverage, which covers damages to your vehicle from another vehicle, regardless of who is at fault.
- Uninsured and underinsured motorist coverage, which pays for medical expenses, loss of income and other damages owed to you, your employees (expenses that are not covered by workers’ compensation) or your passengers when an accident is caused by an uninsured or underinsured motorist.
Nationwide has over 90 years of experience, and offers a package of loss control tools and resources. This includes a Loss Control Services team who can review your small business’s operations, procedures and programs.
Nationwide also offers a custom Business Solutions Center, which provides free resources and tools on several different insurance topics to help small business owners with their coverages.
AAA Commercial Auto Insurance: Best for free roadside service
Not merely just for auto repair, AAA also offers great insurance, including coverage for vehicles that are owned, leased, hired, rented or borrowed. Coverage may include:
- Bodily injury and property damage liability
- Collision damage
- Comprehensive physical damage
- Uninsured/underinsured motorist
- Medical expenses
- Autos rented by employees
- Electronic equipment such as a GPS or DVD player
- Glass repair
- Lease and loan gap coverage
AAA has more than 100 years of experience providing commercial auto insurance to small businesses. AAA also provides several local agents to work with you in reviewing your existing policies. Their agents can help you understand what insurance your small business needs, along with gaps in coverage and hidden discounts you may be eligible for. AAA also has a solid “A” rating from A.M. Best.
State Farm Commercial Auto Insurance: Best for businesses with employees who drive their personal vehicles for work
State Farm– State Farm offers several types of protection — liability, personal injury/medical, comprehensive, and collision coverage, and more.
State Farm agent are knowledgeable when it comes to small businesses. They can help you determine what deductible amounts and coverage limits are best for you.
State Farm also offers Employers Non-Owned Car Liability (ENOL). This ENOL commercial auto insurance policy protects you from liability if your employees drive personal vehicles for business purposes. This is a good thing to have if your employees ever use their own cars for your business. In addition, State Farm provides Loss Control Services and Resources for their customers. This includes free resources to help your small business identify and avoid the most common causes of business auto losses.
Allstate Commercial Auto Insurance: Best for its Small Business Connection program
Allstate has a long history of helping small businesses, having insured more than 100,000 small and medium-sized businesses. They offer a robust commercial auto insurance plan.
Because many Allstate agents are small business owners, they understand the unique risks associated with small business. Allstate Certified Business Agents can help your business identify solutions specific to your business.
Allstate offers its unique Small Business Connection, which allows business owners to access a wide range of professional resources. Small Business Connection partners include
- Office Depot
Allstate’s Small Business Connection can help small business owners with a variety of topics, including legal solutions, banking and finance, technology, employee benefits, web marketing, and more.
USAA Commercial Auto Insurance: Best for current or former military
USAA only offers commercial auto insurance for small businesses under specific circumstances. The USAA Insurance Agency can provide commercial vehicle insurance coverage for a commercial vehicle only if the vehicle:
- Is not used by employees.
- Is not used for deliveries.
So, if you have employees, or make deliveries, USAA might not be the best choice for you. But if not, they are a company to consider. Those eligible for USAA coverage include active, retired and honorably separated officers and enlisted personnel of the U.S. military. Officer candidates in commissioning programs (Academy, ROTC, OCS/OTS) and adult children (18+) of USAA members who have or had a USAA auto or property insurance policy.
USAA is a highly ranked auto insurance company with a high consumer satisfaction rating. USAA earned a perfect score in the category of Overall Satisfaction from the 2016 J.D. Power U.S. Auto Insurance Claims Satisfaction Study.
Liberty Mutual Commercial Auto Insurance: Best for filing claims experience
Liberty Mutual has a good claims process: you can file everything either online or through the app. That’s important for a commercial auto insurance provider. They also have 24/7 claims assistance. If you would like a quote from them, you’ll fill out basic information and an insurance agent will call you.
Infinity Commercial Auto Insurance: Best for drivers with issues in their driving records
Infinity was founded in 2002, although underwritten by Kemper Corporation with over $14 billion in assets and over 60 years of experience. While it’s hard to find reviews of their commercial auto insurance online, their auto insurance is only rated 1.3 stars (out of five) on Trustpilot. They only offer commercial auto insurance in the following states:
On the positive side, they offer 24/7 roadside assistance, and they insure over 1,000 occupations. If you want a quote, you’ll have to call them and speak to an agent.
Infinity tends to specialize in drivers with some issues in their driving records who usually have difficulties in obtaining commercial auto insurance with other companies. Infinity will provide you commercial auto insurance with minimum coverage at a reasonable price. If you are one of those drivers, it is worth getting a quote from them.
Farmers Commercial Auto Insurance: Best for food truck business
Farmers offers specialty insurance for food trucks and contractors, with flexible coverage options. If you have to file a claim, it’s easy to do through the online portal. Customer service reviews are mixed: Consumer Affairs rates them with 2 out of five stars, and the Better Business Bureau gives them 3.89 out of five.
To get a quote from Farmers, you’ll answer basic questions about your business, such as the business’s name, address and phone number and then an agent will call you to discuss your needs.
Next Commercial Auto Insurance: Best if you already have other business policies with Next
Next will happily give you a general liability insurance quote, but to get a commercial auto insurance policy you’ll have to provide them with your drivers’ license number. Also, every time we attempted to get a quote for commercial auto insurance, it brought us right back to the general liability insurance page. For the most part, Next offers a fast and simple process and has excellent customer reviews. They don’t offer commercial fleet coverage, however.
You can add commercial auto to an existing policy as well. They offer several business insurance types for small businesses who prefer buying and managing business insurance policies completely digitally.
What is commercial auto insurance?
Commercial auto insurance is usually necessary if you use cars, trucks, or vans to conduct business. Commercial auto insurance works just like regular auto insurance, except that it covers company-owned cars and trucks. As such, it covers:
- Auto accident liability in at-fault accidents
- Property damages (both to your vehicle and any other vehicles in the accident)
- Bodily injury
- Medical payments for the driver and passengers, regardless of fault
- Uninsured motorist coverage
- Theft, vandalism, flood, or fire damage
Who needs commercial auto insurance?
Obviously, if you own a fleet of delivery trucks, you’ll need commercial auto insurance. However, many people don’t realize (until it’s too late) that their personal auto insurance policy doesn’t cover their vehicle when they use it for work.
If you just drive back and forth to work, that’s covered under your personal auto insurance policy. If you occasionally run errands for your boss while driving your own car, you’re probably okay. However, if you’re a caterer that often delivers food to various locations, you’ll need commercial auto insurance. Real estate agents who drive customers around in their vehicles will also need a commercial auto policy.
If you drive an Uber, you don’t need commercial auto insurance because these companies have require you to have auto insurance and they provide extra insurance while you’re driving for them. However, there is such a thing called Rideshare insurance, which covers everything that isn’t covered by rideshare services and your own auto insurance. The only exception is New York City: Rideshare employees are required to have commercial auto insurance there.
How is commercial auto insurance different from personal auto insurance?
Your personal auto policy covers you when you’re driving for your personal life, and a commercial auto policy covers you when you’re driving for business purposes.
The liability limits on a commercial auto insurance policy are a lot higher. On the positive side, commercial auto insurance is tax-deductible as a business expense, and personal auto insurance is not. Also, with commercial auto insurance you can either name other employees on the policy or just cover all employees.
If you are part of the gig economy and deliver goods or services some of the time, technically the company you’re delivering for should provide some liability insurance. If you aren’t sure what your status is, talk to an insurer to see if you need rideshare coverage or commercial auto coverage.
For the most part, while personal auto insurance won’t cover you if you use a vehicle for business use, commercial auto will cover you if you use a business vehicle for personal use.
How much does commercial auto insurance cost?
Commercial auto insurance is more expensive than a personal auto insurance policy. In our study, the median cost of a $1M policy is about $142 a month. Several factors affect how much you’ll pay:
- type of business
- type of vehicles
- number of vehicles
- how often vehicles are driven
- employee driving records
How much you choose to get in coverage and the amount of your deductible will also affect how much you pay.
It is always a good idea to compare quotes from several companies. Working with a digital broker like CoverWallet or Simply Business will help compare several quotes more easily since they are able to provide several quotes from their partners in just a few minutes.
How to get cheap commercial auto insurance?
Cheap is relative, but you can take some steps to save some money:
- maintain a clean driving record
- raise your deductible
- pay in full
- use cheaper vehicles
- bundle with other types of business insurance
- maintain safety features in the vehicles (anti-theft, alarms, use safe driving apps, etc)
The biggest factor is driving record, so when you hire employees, make sure to ask about it when you interview them. You don’t have to dismiss from consideration every person with some issues on their record, but if you want the lowest price, don’t have them drive for you.
Commercial auto insurance in California: Requirements, Cost, and Best Providers
California requires all business-owned vehicles to be covered by commercial auto insurance. That’s probably a good thing, since L.A. traffic has been rated the worst in the world. Since you’re going to spend a lot of time sitting in traffic, you should make sure you’re covered.
California requires at least $5,000 in property damage per accident, $15,000 in bodily injury coverage, and $30,000 in bodily injury coverage per accident (written as 15/30/5). These limits are very low, and many businesses will insure their vehicles for much more.
In our study, small business owners in California pay somewhere between $574 and $1804 a year for commercial auto insurance.
If you’re looking to buy commercial auto insurance in California, we recommend getting a quote from these companies
You might also try Statewide Commercial Insurance Brokers, which provide contractors and others with most types of business insurance. If you want a quote, you’ll fill out a form and then they will call you. Learn more about the best commercial auto insurance companies in California.
Commercial auto insurance in Texas: Requirements, Cost, and Best Providers
If you use your vehicle for business, other than commuting back and forth, you probably need commercial auto insurance in Texas. State law requires a bare minimum of 30/60/25, or minimum liability of $30,000 per person, $60,000 per accident and $25,000 in property damage.
If you happen to work with farming vehicles, you only need coverage if the gross vehicle weight is more than 48,000 or more, in which case it must be insured for at least $500,000. Commercial vehicles with a weight of more than 26,000 lbs must maintain at least $500,000 in liability insurance as well. If you transport hazardous waste, you’ll need at least $1M in coverage.
In our study, small business owners pay around $650-$900 a year for commercial auto insurance in Texas. Below are the three companies that we recommend to get quotes from
- Liberty Mutual
It’s still a good idea to shop around and get quotes from at least three companies. You can also work with a digital broker like CoverWallet or Simply Business to get and compare several quotes in one place. Learn more about the best commercial auto insurance companies in Texas.
Commercial auto insurance in Florida: Requirements, Cost, and Best Providers
In Florida, commercial vehicles have the same minimum requirements as personal vehicles, or $10,000 in personal injury protection and $10,000 in property damage. Florida is a no-fault state, so any accidents you get into will be covered by your insurance, regardless of who caused it.
The average cost of commercial auto insurance in Florida is somewhere between $2,565 and $3,370.
Three companies we recommend for commercial auto insurance in Florida are:
If you drive for a rideshare company, like Uber or Lyft, you can get rideshare insurance, which is cheaper than commercial auto insurance. Three companies that sell rideshare insurance in Florida are:
It is always a good idea to compare quotes from a few companies. Working with a digital broker like CoverWallet or Simply Business helps obtain and compare several quotes more conveniently.
Commercial auto insurance in New Jersey: Requirements, Cost, and Best Providers
If you own a business in New Jersey, you already know that New Jersey businesses suffer from high taxes and slow economic growth. However, rates on commercial auto insurance are as low as $97 a month. Like most states, you are required to have commercial auto insurance in New Jersey if you use your vehicle for business.
Commercial auto insurance requirements are the same as personal auto insurance requirements: 15/30/5 ($15,000 per person, $30,000 per accident and $5,000 in property damage). However, savvy consumers will want more coverage than that.
Here are three companies we recommend getting quotes from. See more at the best commercial auto insurance companies in New Jersey.
- Liberty Mutual
Commercial auto insurance in New York: Requirements, Cost, and Best Providers
Unlike most states, if you drive for a rideshare company in New York City, you must have commercial auto insurance on your vehicle—not rideshare insurance. The minimum amount of coverage you must have is 25/50/10 ($25,000 per person, $50,000 per accident and $10,000 in property damage coverage, plus $100,000 for death of two or more people in an accident). But you’d probably want more coverage than that.
Three companies we recommend to get a quote from are as follows. See more at the best commercial auto insurance companies in New York.
There are a lot of insurance companies operating in New York, so be sure to shop around for the best price.
Commercial Auto insurance in Georgia: Requirements, Cost, and Best Providers
Georgia is ranked as the 8th best state to start a business in, thanks to their low taxes, high state credit ratings, and reliable infrastructure. Vehicles in Georgia are required to have at least 25/50/25 as the bare minimum in auto insurance.
The average cost of commercial auto insurance in Georgia is $850-$1,300 a year.
When you shop around for a commercial auto insurance policy, bear in mind that some companies, such as The Hartford or Nationwide, will have a risk engineering team which can provide things like analysis of the root causes of accidents and can recommend strategies to prevent them.
- Auto Owners
- W.R. Berkley
- And CoverWallet if you want to compare several quotes online
Commercial auto insurance in Massachusetts: Requirements, Cost, and Best Providers
Massachusetts, primarily Boston, has a high auto theft rate. They also have narrow streets and a confusing layout, which can make rates for commercial auto insurance higher than the norm. Worchester is worse as far as the theft rate goes.
Massachusetts requires all autos to have at least 20/40/5 in insurance, although most businesses with cars and trucks will want more coverage, with $500,000 a year or even $1M being the recommended amount.
Depending on what type of vehicle you want to insure, costs in Massachusetts vary. Here is a breakdown:
- Commercial car insurance: $1,200 to $2,400 a year
- Commercial truck insurance: $800 to $2,000 a year
- Commercial bus insurance: $35,000 a year
Companies you may want to get a quote from include:
- Plymouth Rock
Commercial auto insurance in Ohio: Requirements, Cost, and Best Providers
Ohio offers small businesses the 8th best tax climate in the U.S. Ohio doesn’t tax corporate incomes or have capital gains taxes, making it a very friendly state for a small business.
Ohio requires all vehicles to have at least 25/50/25 in auto coverage, but businesses will want more coverage for their business vehicles. Some larger trucks will require higher limits as well. Luckily, commercial auto insurance is reasonable, about $187 a month.
The best companies to get quotes for commercial auto insurance in Ohio are the following and see more at the best commercial auto insurance companies in Ohio.
- The Hartford
Again, to get the cheapest quote, you need to shop around with a few providers or work with a digital broker like CoverWallet or Simply Business who is able to provide with several quotes in one place.
Does commercial auto insurance cover personal use?
While your personal auto insurance won’t cover you if you use your personal vehicle for business use, your commercial auto policy will cover you if you use your business vehicle for personal use. However, if the employee car is an employee’s only car, then it might not unless you add Drive Other Car Coverage to your Business Auto Coverage Form.
If you have employees who use their own cars for business use, you’ll want to get non-owned business liability endorsement for those cars.
If you drive for a rideshare company, you can get rideshare insurance, which only adds somewhere between $10 and $350 a year to your auto policy.
Is Commercial auto insurance cheaper than personal auto insurance?
No, it is not. Actually, it’s usually more expensive because you’re at higher risk for liability and property claims and you’ll need more insurance than just the minimum requirement.
What is Monoline commercial auto insurance?
A monoline policy provides coverage for a risk that is typically included in a business owners’ policy but is excluded for whatever reason. If company XYZ sells you a business owners policy that excludes property damage, then you would need a monoline policy for property damage.
Sometimes a monoline policy is called a stand alone policy. So, for example, if you buy all of your business insurance from company X except for your commercial auto (either because company X doesn’t offer it or it doesn’t meet your needs) then your commercial auto insurance policy from company Y is a monoline policy.
Temporary Commercial auto insurance
You can get temporary commercial auto insurance, which is short-term insurance. It usually lasts for somewhere between 24 hours and 30 days. This provides you with enough time to drive your truck home and then comparison shop for a long-term insurance policy. It covers the vehicle for transport, but you can’t use it for freight.
The biggest factor in getting a good price for a commercial auto policy is shop around. And once you have a policy, you should review it every year so the insurance company doesn’t sneak rate hikes into your policy. Compare at least three companies and choose the one that best meets your needs.