Often legally required

Commercial Auto Insurance

Commercial auto insurance covers vehicles your business owns, leases, or that employees regularly drive for work — service vans, delivery vehicles, work trucks. A personal auto policy typically excludes business use entirely, so any vehicle making deliveries, hauling equipment, or carrying tools for client jobs needs a commercial policy, even if it's technically titled to the owner personally. It covers collision and liability the same way personal auto does, but rated for the higher risk and mileage of business use.

Commercial Auto: what it costs, what it covers, who needs it

$100–$300/moTypical monthly cost
$1,000,000 combined single limit liabilityTypical coverage limit
Any business that owns, leases, or regularly uses vehicles for deliveries, service calls, hauling equipment, or transporting goods.Who needs this coverage

Rates vary by state, revenue, and claims history — always compare multiple quotes.

State-minimum liability coverage is legally required for any registered vehicle; commercial-specific coverage is required once the vehicle is used for business.

What's covered

  • Liability for injury or property damage you cause while driving for business
  • Collision coverage for damage to your own vehicle
  • Comprehensive coverage for theft, vandalism, and weather damage
  • Medical payments for you and passengers after an accident
  • Hired and non-owned auto coverage for rented or employee-owned vehicles used for work

What's excluded

  • Purely personal use of a vehicle (that stays on a personal auto policy)
  • Cargo/tools inside the vehicle beyond basic limits (often needs a tools & equipment floater)
  • Injuries to your own employees while driving (workers' comp applies instead)

A personal auto policy excludes business use entirely — any vehicle used for deliveries or service calls needs this instead.

What drives the price

  • Number and type of vehicles, and their age/value
  • Driving records of employees behind the wheel
  • Radius of operation and annual mileage
  • Coverage limits and deductible chosen

Real claim example

A service van rear-ends another car while the technician is en route to a job.

Commercial auto covers the other driver's vehicle repair and medical costs, plus repairs to the van — about $28,000 total.

Commercial auto covers the other driver's vehicle repair and medical costs, plus repairs to the van — about $28,000 total.
Payout from a single real claim — well above the monthly premium
This is exactly why businesses don't skip this coverage.

Commercial Auto is legally required for businesses of any size. At $100–$300/mo, it is one of the most cost-effective ways to protect against a potentially six-figure claim.

FAQs

Can I just use my personal auto policy for business driving?

Most personal policies exclude business use and will deny a claim if the vehicle was being used for work at the time of the accident.

What if employees use their own cars for work errands?

Hired and non-owned auto (HNOA) coverage extends your liability protection to vehicles you don't own but that employees use for business.

Are my tools covered if they're stolen from the van?

Usually only up to a small built-in limit — a tools & equipment (inland marine) policy covers this properly.

See all policy types