Commercial Auto Insurance: Cost, Coverage & Providers

Cody Cromwell
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What Is Commercial Auto Insurance?

Commercial auto insurance can be defined as the coverage for a business and its employees and owners. It’s the additional insurance you’ll need when considered in relation to a business and its employees.

These workers are covered under the business’s coverage limits, and commercial auto insurance helps pay the amount left after the customer and the driver are covered.

Commercial auto policies are broken down by different levels of coverage. For instance, there is at-risk coverage (full coverage for a company), a special additional coverage (coverage that is added on top of a regular policy), and above standard coverage (includes additional coverages that are more extensive).

There are numerous types of risks covered by these different policies, such as bodily injury liability (to compensate for negligence), baggage, fire, theft, and a host of other common risks.

Who Should Have Commercial Auto Insurance?

Any kind of business in need of a commercial insurance policy should have one.

Every business at any level has different levels of risk. Same goes for the businesses from their employees. Their personnel will have varying degrees of experience.

If you’re in charge of the overall operations of the business or if you have hired a few employees in the past, you should have a commercial auto insurance policy.

Commercial Auto Insurance Coverages

As a small to mid-sized business owner, it’s important to have adequate state-mandated commercial auto insurance if you own a vehicle. So, what are the applicable coverage minimums and types that your business auto insurance policy should have?

The minimum coverage requirements of your business auto insurance policy depend on whether the vehicle you own is a private or commercial use. The relevant minimum amounts for commercial use are established by the state where you’re selling or providing your services. But, there are some basic minimums that are industry standard for private and commercial use.

Your business auto insurance policy should cover your vehicle for physical damage, theft, and liability claims that are faced in the course of vehicle use. In addition, some policies may offer business liability insurance that covers injury or property damage that is caused to a third party, including pedestrians, delivery personnel, and customers. Other basic coverages that your policy should have are bodily injury, comprehensive, collision, and environmental protection. Also, you may opt to include additional coverages such as roadside assistance, scheduled maintenance, and recovery costs for tire, glass, and other damages.

Here are other coverage types established by the Insurance Information Institute (III) for private and commercial use:

Personal injury protection, including bodily injury liability and additional coverage for property damage only, if you operate rental vehicles or for a non-owned auto policy.

Commercial Auto Insurance vs Personal Auto Insurance

You probably associate the term insurance with the financial services offered by insurance companies, but you can also use the term to describe the different types of protection that are associated with certain classes of risk. One example is automobile insurance.

When you apply for car insurance, you’re typically purchasing liability coverage. Liability coverage covers you for damages or injuries you may be responsible for. You could be held liable if you don’t keep your vehicle out of the way of others or if you cause an accident. Auto insurance can also help you cover any damage that results from towing.

There are also other types of insurance that can help you protect your investment in your car. For example, comprehensive coverage can help you cover damage to your vehicle. Comprehensive coverage protects you if your car is stolen or if it gets hit while parked on the street.

If you own a farm equipment, business equipment, or mobile home, you may be eligible for hazard insurance. This coverage covers the cost to repair or replace damaged covered property after a loss.

How Much Does Commercial Auto Insurance Cost?

Car insurance for commercial vehicles, or commercial auto insurance, is a specialized subset of car insurance that is designed to cover those who drive for hire. Because of their work, commercial owners are more likely than private drivers to be in traffic accidents, which makes them more susceptible to financial losses when accidents result in damage to their vehicles.

Commercial Vehicle Insurance Costs by Vehicle Type

When it comes to assessing the cost of commercial auto coverage, you need to look at the type of vehicle your company will have insured. Most professional drivers choose to insure their personal vehicles for business purposes. However, you can also find other options in the marketplace.

For example, in order to properly insure your car for business, there are some important elements you must take into consideration. The most important elements when it comes to commercial auto insurance costs include the following:


As you might think, the majority of commercial auto insurance costs for this category of vehicles mainly involve indirect costs. These costs include the micro or minicab vehicles’ direct expenses. For instance, these vehicles carry a significant amount of inventory, equipment, tools, supplies, office supplies, equipment, etc. In addition to that, insurance companies may also take into consideration the fact that some attempts have been made, by the public, to illegally obtain these high earning vehicles.

Larger Vehicles

Generally speaking, large commercial vehicles make up the second-biggest category of vehicles on the road. They come in various shapes and forms. For instance, cargo trucks and tractor trailers are two commercial vehicles that appear most often on the road. They most often serve the purpose of transporting cargo.

Top Commercial Auto Insurance Companies

Many manufacturing companies with a large volume of vehicles use insurance programs to handle their commercial auto claims. There are a number of different programs available, from the simplest to the most comprehensive.

Either way, you’ll still want to carefully review the specifics of a particular automobile insurance program. In addition to being more expensive than other minimum auto insurance coverages, some programs come with additional restrictions that might not be what you need.

Therefore, it’s important to understand that insurance companies are business organizations that respond to every policyholder’s request for coverage. You might be able to negotiate a lower premium if you’re willing to give up something in return.

Before you take out a commercial automobile insurance policy, be sure to read up on your particular state’s requirements. You should also check with your state’s insurance department to make sure you’re not violating any laws.

Progressive Commercial

Progressive offers commercial auto insurance to businesses of all types, sizes and locations. Along with the convenience of online account management, you can also take advantage of three online quote options: a mobile quote, an in-person quote and a mobile quote.

Commercial Auto Insurance Symbols

Progressive insurance reviews suggest that it offers one of the messiest commercial auto insurance policies around. Many policy holders have criticized Progressive for their lack of detail about the coverage changes, especially surrounding the exclusion clause.

Commercial Auto Insurance Types

With so many policies to choose from, it can be difficult to determine the best commercial auto insurance type for your business. Consider key factors such as your risk level, your business location, the type of business you have and the type of work you do.

What Is Commercial Car Insurance

Commercial car insurance is a type of automobile insurance that covers commercial vehicles such as service trucks, taxi cabs and vehicles used for business purposes, which is commonly referred to as commercial auto insurance.


Motorcycle Insurance How does Geico Motorcycle insurance work?


Auto Insurance claims and rates are calculated based on a number of different factors. The single most important factor is how much automobile coverage you buy. If you have the right amount of Liability, Property Damage, Comprehensive, Collision, and Medical insurance, your claim will be compensated very well.

Remember, each insurance carrier uses a different methodology for calculating your claims. Your insurance provider is expected to pay 100% of your Liability, Property Damage, and Medical claims. That’s why you’ll need to dig deep into your pocket for comprehensive, collision, and physical damage coverage. However, there are some insurance providers that will pay your collision and physical damage claim or even offer a no deductible offer.

So what are you waiting for?

Get the right amount of coverage for your automobile and buy it today. You’ll be glad that you did.

The Hartford

The Hartford auto insurance company does not belong to A.M. Best Company, which can provide you a list of their standard auto insurance products. They offer auto and home insurance, and also provide health and life insurance.

The company was founded in 1889 and is currently based in Hartford, Connecticut. They are a subsidiary of The Travelers Companies Inc, which is headquartered in Hartford as well.

The Hartford’s brand recognition has been increasing over the years, and that can be attributed to their longevity, as well as their relationship with the highest ranking snobbish brands. The fact that they are part of The Travelers Companies Inc makes them a stable company to be part of.

If you are looking for a top-notch auto insurance policy you can count on, check them out. They offer not only affordable but quality insurance policies.


In the last couple of years, the United States has seen an explosion of on-line insurance brokers. These brokers have been providing consumers with cheaper insurance options, especially for car insurance. This trend started as a response to the significant increase in rates caused by natural disasters and an aging population.

All of this may have caused enough of a disruption in the industry to go through a full-on shift in the way that insurance companies operate. The results of this shifting marketplace are causing insurance companies to focus more on what coverage customers need rather than what coverage companies want to sell.

We at CoverWallet are excited to see this innovation take place in the auto insurance industry. Our goal is to make it easier for you to find the right auto insurance policies that match your exact needs.

In order to help you with your commercial auto insurance needs, we’ve put together a study of the auto insurance market today. Our study focused on the following topics:

  • Who is buying auto insurance?
  • Where do they buy from?
  • What are they paying?

Who Needs Commercial Auto Insurance?

The second most common question asked by people is, who needs commercial auto insurance?

The need for commercial auto insurance is often debated by insurance companies as many businesses do not require this type of coverage. Many companies still provide the basic level of insurance when they insure their vehicles because their main motivation to get insurance from an insurance company is to protect themselves. Most businesses want the basic level of coverage to cover the costs of restoring a stolen vehicle and the costs for the damages caused by the damages of an accident, especially if the business has few workers and is only partially occupied.

But the need of the coverage has further expanded over the past decade as the job functions of businesses have evolved. The growth in the number of small warehouses, auto repair shops, pizza vendors, food trucks, drink carts, bus stops and other businesses as a whole prompted many insurance companies to offer comprehensive commercial auto insurance.

The business with few workers may also want to consider commercial auto insurance because it acts as an extra layer of defense when the business has workers working at the location but the business is not fully occupied.

If your business has employees and vehicles, but only semipublic area of work, you may also consider commercial auto insurance.

Commercial auto insurance is for businesses that will frequently be traveling to different locations. It offers the same level of protection as the basic auto insurance offering, but places coverage for commercial activities.

Is Commercial Auto Insurance Required by Law?

Commercial auto insurance is a little more restrictive than regular car insurance, since it’s more targeted to businesses with a lot of money that have to move around a lot. But that doesn’t mean you’re not covered! There are still some things you should know about commercial auto insurance.

Business owners are required to have commercial car insurance to operate legally. This means that the car you drive for your business must have some sort of commercial auto insurance. Of course, it’s strongly recommended that you also have some personal car insurance so that you can still make personal trips to work !

The commercial car insurance is typically backed up by commercial vehicle insurance underneath it. This means that if you cause an accident, the insurance covers the damages should it go through to the commercial truck insurance.

Additional Business Insurance for Vehicles

Although your homeowners insurance covers your vehicle from certain damages, you may want to consider adding on additional business insurance coverage to cover such inconveniences.

You want to make sure your business is operating as it should and that you still have the resources to do it right. We can deal with the small inconveniences, but what about when a larger issue makes you rethink your business?

Additional business insurance coverage can help you stay strong to succeed. Here are the most important things to look for in an additional business insurance policy:

Vehicle Repairs

A vehicle can easily become necessary to operate your business. If it is damaged, however, the downtime can cause you to lose clients, which can cause you to lose money. Make sure you find a policy that understands this and covers your vehicle for the unexpected damages.

Business Operations Coverage

Are you the sole owner of the company? Are there other people working with you? Be sure to find additional business coverage that only covers your business operations. Make sure the policy covers such things as equipment and property damage.

Business Expenses

Is there a chance that you will incur business-related expenses? Be sure that your business insurance includes such coverage for you to get reimbursed for any actionable losses.

Ride-share Insurance

Inland Marine

Companies that provide automobile insurance for commercial use are known as marine insurers, and coverage they offer is known as inland marine coverage. Under an inland marine policy, coverage is provided against a wide range of losses, including those resulting from:

collision with an object, such as a fixed or floating object, on the water, such as various boats, floats, fish, floating debris, etc.; un-attended objects, such as unmanned boats, speedboats, rafts, etc.; flooding; fire and explosion, and glass breakage and transit damage, unless this coverage is specifically excluded by the insurance contract.

In addition, inland marine coverage includes coverage for loss of business income and liability coverage. Inland marine coverage does not provide coverage for damage resulting from a condition that could have been detected through the inspection of the insured’s watercraft or by conducting a proper visual examination of the watercraft. For example, damage resulting from collision with an object, or un-attended debris, is not covered under inland marine insurance. Any loss resulting from collision with a submerged object or un-attended debris is covered under inland marine coverage.

While inland marine insurance has historically been limited to commercial vehicles, regulators are now considering the possibility of expanding inland marine insurance to cover all watercraft.

There are 3 ways to buy commercial auto insurance.

Contractor’s Equipment Coverage

As a contractor, you probably already carry liability insurance from your business owner. But that policy will only protect you from damages you cause to third parties— such as other contractors and customers – and only when you are working on a construction site.

If you need to make big purchases – from purchases of service vehicles to large construction equipment – it’s best to make sure you have a strong commercial auto insurance policy.

Purchasing this coverage can be a bit confusing at first as there is no category for –manufactured home” on your policy form. One of the easiest ways to find coverage for your contractor’s vehicles is to contact your insurance agent. They will help you find the right policy and will point you in the general direction of a motor vehicle insurance company that handles insurance claims for the manufacture and sale of semitrailers, motor homes and commercial vehicles.

Garagekeeper’s Coverage

Prior to any work being undertaken an insurance certificate can be sought from the Garagekeeper. The insurance certificate will identify the Garagekeeper and name the vehicle’s Owner.

The Base Garagekeeper’s Policy Includes Cover For;

Garagekeeper’s liability insurance for tools, tools in transit, parts, etc. and cover for tools, and parts for the repair.

This cover replaces the "Exclusive tools" clause found in the Garagekeepers Contract.

The policy would be updated for service intervals just as the Contract is.

If the Garagekeeper is expecting to drive their own vehicle to the site, then their private insurance needs to be coordinated as part of the Agreement. If the Garagekeeper is expecting the Client to supply and pay for their car, then the Agreement and Insurance is coordinated through the Client (often with Client’s Garagekeeper taking out tower insurance with the Client).

Insurance purchases and renewals should be overseen by one of our Insurance Agents, who’ll be able to clarify coverage, and product availability prior to any commitments to the Client.

The Client should consider insuring against the vehicle at a level of liability appropriate to their intended use – e.g. if they are intending to use the vehicle for business purposes, then they should consider extra cover.

On-hook Towing Insurance

If you regularly tow a large vehicle, such as a truck, you may be interested in the extra coverage for on-hook towing available in many auto insurance policies. This option provides coverage for a tow truck operator that is called on by an master policyholder to provide the vehicle’s transportation services.

The coverage would typically begin when the tow vehicle’s hook connects with the subject vehicle’s hitch, but it’s important that the operator has not yet left the subject vehicle’s premises or parked at a designated location or in safe designated areas (e.g. fire lanes).

In case the operator has already left the subject vehicle’s property, the coverage would not be void as long as the operator is en route to a designated location where they can safely unhook the vehicles.

Racing Track Coverage Limitations

It’s important to note that there are very specific coverage limitations for on-hook towing insurance. A few reasons why:

The insurance company does not want to pay out for instances where the tow truck is literally standing by waiting to pick up another vehicle.

If there’s a breakdown, the insurance company would not be able to properly recover their money because they’ve done nothing to help remedy the issue.

Cargo Liability Insurance

If you’re involved in a car accident that involves a third party… when you drop the car off, the car you pushed, or any cargo that was loaded into the back of the car, you’ll want cargo liability coverage.

If you’re not involved in the accident, but your car is hit by a third party… and in most cases there are probably damages, cargo liability coverage will provide you with additional coverage for further damages which may be passed on to you.

Now cargo liability coverage, in short, will provide you with coverage for physical damage or bodily injury to third parties that is related to the following:

Your car being hit with a third party.

You backing into a tree, hitting a vehicle.

Damages Done to the Cargo Claimed in the Back of Your Car

You’ll want to research your coverage options before you buy because loading your cargo in the back of your car is dependent on whether or not you’re carrying anything in the back.

If you carry any valuables in the back of your car, make sure to take out a policy that covers valuables.

Commercial Fleet Insurance

If you work for a commercial fleet, you need commercial auto insurance.

There are a few different requirements and terms by which fleets are insured in order to drive their vehicles on a commercial business basis. Some of these requirements vary based on the type of business or company you work for, your duties or role within the business, and the amount of business that the company conducts.

The following outline the most common types of fleet insurance, as well as the basic types of coverage that many businesses need.

Bottom Line

Commercial Auto Insurance Comparison Table

Commercial auto insurance is available from multiple vendors across the market. However, it’s not a good idea to compare quotes from different insurers because of the high number of variables that come into play. We here at InsuranceTalk try to focus on the essential factors that matter to you rather than the minutiae, so our comparisons are a convenient place to start asking the right questions, trawling through the available policies and establishing a good comparison. To help you get the right policy for your business requirements, here’s a Commercial Auto Insurance Comparison Table we’ve put together that may help you find the most suitable policy:

  • Our Table Of Comparison
  • Glossary Of Commercial Auto Insurance Terms

What does the term commercial auto insurance mean? Essentially, two-thirds of all auto coverage (including homeowners, renters, and business policies) is classified as commercial auto insurance. Whatever you need to pay your driver for any kind of business auto usage … driving employees to and from work, transporting equipment, business trips, business meetings, etc. … this insurance policy can cover.