Commercial Auto Insurance for Business Vehicles

Business Insurance for Commercial Auto

Commercial Auto Insurance protects vehicles used for business operations and the people who drive them. Whether you have a fleet of delivery trucks or a single company car, this coverage handles accidents, injuries, and vehicle damage that occur during business use. Personal auto policies won't cover business use, leaving you exposed to significant financial risk if you don't have proper commercial coverage.

Why Your Business Needs This

• Your employee causes an accident while making deliveries, injuring others
• A company vehicle is stolen or vandalized
• Weather or road debris damages your business vehicle
• Someone sues your business after an accident involving your vehicle
• Personal auto insurance denies a claim because the vehicle was used for business

What It Covers

Commercial Auto Insurance provides liability coverage for bodily injury and property damage you cause to others in an accident. Physical damage coverage protects your own vehicles from collision and comprehensive losses like theft, vandalism, fire, or weather damage. Medical payments coverage handles medical expenses for you and your passengers after an accident, regardless of fault. Uninsured and underinsured motorist coverage protects you when hit by drivers without adequate insurance. The policy covers multiple drivers operating your vehicles for business purposes.

When Do You Need Commercial Auto?

You need Commercial Auto Insurance if your business owns or leases vehicles. If you use your personal vehicle regularly for business purposes beyond commuting, you likely need commercial coverage or at minimum a business-use endorsement. Companies whose employees drive their own cars for business errands need Hired and Non-Owned Auto coverage. Delivery services, contractors, sales teams, and service providers who travel to client locations all typically require commercial auto policies.

What Types of Vehicles Are Covered?

Commercial Auto policies cover various vehicle types depending on your business needs. Standard coverage applies to cars, pickup trucks, and vans used for business. Box trucks and larger commercial trucks qualify for coverage. Service vehicles with permanently attached equipment need commercial policies. Some insurers cover specialized vehicles like food trucks or mobile workshops. Very large trucks or vehicles requiring special licenses may need specialized commercial trucking insurance. Trailers and certain attached equipment can also be covered.

How Much Does Commercial Auto Cost?

Commercial Auto Insurance costs vary based on several factors. The types and number of vehicles you insure directly impact pricing. How you use the vehicles matters—local delivery costs differently than long-haul trucking. Your drivers' records and experience levels affect rates significantly. The coverage limits and deductibles you choose change your premium. Your claims history influences pricing, with clean records earning better rates. Geographic location and where vehicles are garaged also factor into costs. Maintaining good driving records and implementing driver safety programs can help control expenses.