Best Commercial Auto Insurance for 2024

What types of vehicles are covered by commercial auto insurance?

Commercial auto insurance covers several types of vehicles such as:

• Cars, vans, & passenger vehicles
• Box trucks & delivery trucks
• Food trucks
• Goods-carrying vehicles
• Dump trucks
• Truck trailers
• Specialty vehicles (i.e. hearse)

While this list is extensive, it’s important to note that certain types of machinery and equipment vehicles, like forklifts, are not included under most commercial auto insurance policies.

What’s covered by a commercial auto insurance policy?

Commercial insurance combines several coverage options into one policy.

Here’s what you need to know about each type of insurance:

What’s not covered by commercial auto insurance?

A standard commercial auto policy typically has these exclusions:

Property handling:
Your auto policy won’t cover accidents that occur while you’re loading or unloading one of your business vehicles. For example, if you run an electrician business and an employee drops a heavy tool kit on his foot while unloading your truck, your auto insurance won’t cover his medical expenses.

Pollutants:
Even the most comprehensive policy won’t cover claims linked to pollutants. For example, many companies transport hazardous chemicals in their trucks. If a truck carrying one of these chemicals tips over, the chemical may seep into a nearby pond. Your auto insurance won’t cover any claims related to the leak.

Mobile equipment:
This type of insurance doesn’t cover mobile equipment that isn’t designed to be driven on public roads. For example, tractors, backhoes, forklifts, etc. Therefore, if you have a business in the construction industry and an employee gets into an accident with a backhoe, your commercial auto insurance policy won’t cover related expenses.

Property stored in the vehicle:
Tools, merchandise, and other items stored in the company vehicle are usually excluded from a commercial auto policy but can be covered with an add-on or a separate inland marine insurance policy. With an inland marine policy, if merchandise is damaged or stolen while in transit, your insurance can reimburse you.

Racing:
Your insurance company won’t pay any expenses related to accidents caused by racing or other high-risk activities.

Hired/non-owned autos: This coverage is specifically made for leased vehicles. A standard commercial policy won’t cover any bodily injury or property damage expenses arising from an accident in a leased vehicle.

Who needs commercial auto insurance?

Every business owner that has at least one company vehicle should have a commercial auto insurance plan. This is especially true if you have a fleet of company vehicles operated by employees.

Even if you don’t own a business, you may need commercial auto insurance if you drive for a ride-sharing service, use your vehicle to deliver goods, or drive to multiple job sites every day.

If you use your car for work-related tasks but not specifically for commercial purposes you likely do not need commercial auto insurance. For example, if you stop to buy breakfast for the office once per week you likely do not need commercial auto coverage.

If you aren’t sure what type of insurance is right for you, an agent can help.

How much does commercial auto insurance cost?

Our partner Insureon states that small businesses pay around $146 per month for commercial auto insurance. This is based on internal sales data from a range of different types of businesses.

Many factors affect the cost of commercial auto insurance, such as the type of vehicle you have, the size of your business, the number of vehicles you own, and your location.

Your insurance company will also want to know about any industry-specific driving risks involved in your work. Standard vehicles are the cheapest to insure, while taxis, limousines, and semi-trucks are the most expensive.

Try our pricing tool to find out how much commercial auto insurance could cost you.

Is commercial auto insurance worth it?

Commercial auto coverage is not only worth it, it’s a necessary coverage for businesses that own or operate commercial vehicles.

Without commercial auto insurance, you can end up owing thousands of dollars in property damage and/or bodily injuries. Depending on the severity of the accident, some claims can exceed $1 million.

Other types of business insurance you may need

If you’re a business owner, you need several types of insurance to protect you against significant losses.

You should consider buying general liability insurance. Although your commercial auto policy includes liability coverage, it only applies to auto-related claims. A general liability policy covers you when a third party injures themselves or their belongings on your property. For example, if someone sues you after falling in your showroom, a liability policy will pay your legal expenses.

Commercial property insurance covers your building, on-site tools, and equipment. For example, if you have a store that’s been damaged by lightning, fire, or wind, your property insurance will cover the cost of the repairs, less your deductible and any other out-of-pocket costs.

Workers’ compensation insurance is required in most states and covers medical expenses and lost wages for employees who get injured on the job. For example, if you run a deli and one of your employees cuts a finger with a meat slicer, your workers’ comp policy would pay for their treatment and follow-up care.