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Commercial Auto Insurance: Compare Quotes & Learn

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Table of contents

1. What is Commercial Auto Insurance?2. Why Does Your Business Need Commercial Auto Insurance? 3. Why Commercial Auto Insurance And Not Personal Auto Insurance?4. Understanding The Terms Used In Commercial Auto Insurance4.1. Policyholder4.2. Commercial Auto 4.3. Covered/Insured Auto4.4. Bodily Injury 4.5. Property Damage4.6. Third-Party 4.7. Deductible4.8. Additional Insureds 4.9. Surcharge4.10. Endorsement4.11. Exclusions 5. Vehicles You Can Cover With Commercial Auto Insurance6. Who Are Insured?7. Components Of Commercial Auto Insurance7.1. Auto Liability Coverage7.2. Collision Coverage7.3. Comprehensive Coverage7.4. Rental Reimbursement Coverage7.5. Roadside Assistance Coverage7.6. Uninsured/Underinsured Motorist Coverage7.7. Medical Payments Coverage7.8. Personal Injury Protection Coverage7.9. Gap Insurance8. Short-Term Commercial Auto Insurance9. Food Truck Insurance10. Dump Truck Insurance11. Hotshot Trucking Insurance12. Box Truck Insurance13. Commercial Truck Insurance14. Commercial Auto Insurance Cost15. Best Commercial Auto Insurance Companies 15.1. CoverWallet Commercial Auto Insurance 15.1.1. Pros15.1.2. Cons15.2. CommercialInsurance.Net Commercial Auto Insurance 15.2.1. Pros15.2.2. Cons15.3. NEXT Commercial Auto Insurance 15.3.1. Pros15.3.2. Cons15.4. Progressive Commercial Auto Insurance 15.4.1. Pros15.4.2. Cons15.5. Thimble Commercial Auto Insurance 15.5.1. Pros15.5.2. Cons15.6. Hiscox Commercial Auto Insurance 15.6.1. Pros15.6.2. Cons15.7. Geico Commercial Auto Insurance 15.7.1. Pros15.7.2. Cons

Does your business have a commercial vehicle?

If this is the case, then hear this. Vehicular crashes are so common that it’s the leading cause of death in every major business industry.

In connection, experts estimate that for each commercial vehicle accident, businesses lose $75,000 per non-fatal injury and $751,000 per fatality.

Your business’s vehicle can hurt people, damage property, or need fixing in case an accident happens. To protect yourself against the resulting costs, consider getting commercial auto insurance.

Also read:

What is Commercial Auto Insurance?

Commercial auto insurance is a policy that is used to insure vehicles owned and used by businesses to haul materials, transport people, deliver products, and many more. 

Also called commercial vehicle insurance, this covers liabilities for the accidents your commercial vehicle caused, vehicle parts repair or replacement expenses, and many more. 

You can get this type of commercial insurance for vehicles as a stand-alone policy. But note that there are insurance companies that offer it together with other policies in used car dealer insurance, food delivery insurance, and commercial van insurance plans.


Why Does Your Business Need Commercial Auto Insurance? 

Get commercial auto insurance because unfortunate events can happen. Here are some examples:

  • Vehicular accidents can happen due to the driver’s negligence or uncontrollable factors such as mechanical breakdown, slippery roads, bad driving conditions, etc. As a result, your business will be liable for indemnifying the losses, pain, and suffering of the affected parties

  • Your business’s vehicle can get involved in an accident caused by another driver

  • The commercial vehicle you own can be the subject of theft or vandalism

  • Your business’s commercial vehicle might sustain damage due to hail, snow, storm, and other acts of God


Why Commercial Auto Insurance And Not Personal Auto Insurance?

A personal auto insurance can be used as coverage for a commercial vehicle. This practice is common among uber drivers, hot shot truckers, and professionals who often utilize their personal auto commercially. However, there are many drawbacks such as:

  • Expensive premiums

  • Policy cancellation

  • Inadequate coverage

  • Rejection of your insurance claim 


Commercial auto insurance is the most reasonable protection for a commercial vehicle. It’s because it offers numerous types of coverage that cover the specific exposures of owning a vehicle for business use. 


Understanding The Terms Used In Commercial Auto Insurance


Policyholder

The policyholder is the one who owns the commercial auto insurance policy and pays for it. In other words, you. 


Commercial Auto 

A commercial auto is a vehicle used for business purposes and is currently registered as a business property. 


Covered/Insured Auto

The covered/insured auto is the vehicle that the coverage of commercial auto insurance applies if something happens.  In other words, this is your business’s vehicle.


Bodily Injury 

Bodily injury pertains to any physical harm your business’s vehicle inflicts to third parties such as cuts, lacerations, fractures, etc. 


Property Damage

In the terms of commercial auto insurance, property damage pertains to any type of harm your commercial vehicle inflicts to an object owned by a third party. 


Third-Party 

A third party is a person or entity not part of your business. This can be members of the public, customers, vendors, etc. 


Deductible

A deductible is an amount of money you have to return to the insurance company after your commercial auto insurance claim has been processed. 


Additional Insureds 

Additional insureds are vehicles that commercial auto insurance can cover aside from the policyholder’s vehicle originally declared as covered in the terms of the policy. 


Surcharge

Surcharge is an additional fee imposed by the carrier if the policyholder wants to use commercial auto insurance to cover accidents caused by his or her business’s commercial vehicle. 


Endorsement

An endorsement is a clause, a provision, or an agreement that changes the functions or coverages of commercial auto insurance. 


Exclusions 

Exclusions are situations or occurrences wherein the coverage of commercial auto insurance doesn’t apply. 


Vehicles You Can Cover With Commercial Auto Insurance

We must make it clear to you that a commercial car policy doesn’t only cover light to medium vehicles used for business purposes.

In reality, the policy covers motorcycles and other motorized wheels used commercially. That said, here’s a comprehensive list of which vehicles can be insured with business auto insurance:

  • Semi trucks

  • Taxis

  • Bus

  • Dump trucks

  • Garbage trucks

  • Tank trucks

  • Flatbed trucks

  • Box trucks

  • Logging trucks

  • Cargo vans

  • Combi vans

  • Dropside vans

  • Tipper vans

  • Container trucks

  • Refrigerated trucks

  • Delivery mopeds and motorcycles

  • Delivery vans


You can also use commercial auto insurance to insure factory, farm, and construction equipment that may traverse public roads such as:


Who Are Insured?

The following are the entities considered as insureds in the terms of commercial auto insurance:

  • The policyholder and his vehicle-The policyholder is the primary insured in the terms of commercial vehicle insurance. Note that coverage only applies to his or her commercial vehicle stated as covered in the policy’s terms. Therefore, protection doesn’t apply to other vehicles not declared as insured

  • Permissive Users-Additional insureds can be added to the terms of your business auto policy. Particularly, these are drivers who you allow to drive the vehicle the policy covers. A good example of this is an employee you assign to operate the commercial vehicle

  • Omnibus insureds-Commercial auto insurance shields the person responsible for the acts of the policyholder or permissive users. For example, the person who hires your commercial vehicle to deliver goods can be protected by your commercial auto insurance

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Components Of Commercial Auto Insurance

Commercial auto insurance is composed of different coverages. Refer to the image below for a quick reference. 


Auto Liability Coverage

Commercial auto insurance helps if your commercial vehicle causes an accident and injures third parties and damages properties. This is done through its auto liability coverage. 

The auto liability coverage of commercial auto insurance will pay the medical expenses of third parties injured by your business’s vehicle. It will also reimburse the losses of those who had their property damaged

If ever affected parties decide to sue, auto liability coverage will help you cover settlements. And in case they won’t settle, auto liability coverage can provide funds you can use to pay attorney fees, investigation fees, administrative fees, and other legal defense costs. 

Note that states have guidelines about how much auto liability coverage your commercial auto insurance must offer. Here’s a table that shows the state minimums:


Per Person Bodily Injury Limit Per Property Damage Coverage Limit 
Alabama $25,000$25,000
Alaska $50,000$25,000 
Arizona $25,000$15,000
Arkansas$25,000$25,000
California$15,000$5,000
Colorado$25,000$15,000
Connecticut $25,000$25,000
Delaware$25,000$10,000
FloridaNone$10,000
Georgia $25,000$25,000
Hawaii$20,000$100,000
Idaho$25,000$15,000
Illinois$25,000$20,000
Indiana $25,000$25,000
Iowa$20,000$15,000
Kansas$25,000$25,000
Kentucky$25,000$25,000
Louisiana$15,000$25,000
Maine$50,000$25,000
Maryland $30,000$15,000
Massachusetts$20,000$5,000
Michigan $50,000$10,000
Minnesota$30,000$10,000
Mississippi$25,000$25,000
Missouri$25,000$25,000
Montana $25,000$20,000
Nebraska $25,000$25,000
Nevada$25,000$20,000
New Hampshire$25,000$25,000
New JerseyNone$5,000
New Mexico$25,000$10,000
New York$25,000$10,000
North Carolina $30,000$25,000
North Dakota$25,000$25,000
Ohio$25,000$25,000
Oklahoma$25,000$25,000
Oregon $25,000$20,000
Pennsylvania$15,000$5,000
Rhode Island $25,000$25,000
South Carolina $25,000$25,000
South Dakota$25,000$25,000
Tennessee$25,000$15,000
Texas$30,000$25,000
Utah$25,000$15,000
Vermont$25,000$10,000
Virginia$25,000$20,000
Washington$25,000$10,000
Washington D.C.$25,000$10,000
West Virginia $25,000$25,000
Wisconsin$25,000$10,000
Wyoming$25,000$50,000


Collision Coverage

The collision coverage of commercial auto insurance covers repair or parts replacement if your commercial vehicle got damaged after colliding with a car or an object. 

Collision coverage doesn’t cover the repair or replacement of your commercial vehicle’s aftermarket parts. Coverage doesn’t apply to normal wear and tear too. 


Comprehensive Coverage

Aside from collision coverage, commercial auto insurance offers comprehensive coverage. This  covers the repair or replacement of parts if your commercial vehicle sustained damage due to:

  • Fire

  • Theft

  • Vandalism

  • Hail

  • Snow

  • Your commercial vehicle collided with an animal and sustained damage 

  • Flood

  • Lightning

  • Debris

  • Falling object


Similar to collision coverage, comprehensive coverage doesn’t cover normal wear and tear, and aftermarket parts. 


Rental Reimbursement Coverage

Insurance companies foresee that damage may render your commercial vehicle unusable for a while. And as a result, you might need to rent one. This is why commercial auto insurance has rental reimbursement coverage, which refunds vehicle rental expenses and minimizes the losses 


Roadside Assistance Coverage

Roadside assistance coverage helps to cover out-of-pocket expenses if your commercial vehicle suffers a mechanical breakdown at a specific distance. Particular costs covered are:

  • Lodging

  • Tire delivery and replacement

  • Battery jump-start service

  • Towing

  • Gas delivery


Uninsured/Underinsured Motorist Coverage

Your commercial auto insurance can have uninsured/underinsured motorist coverage. If your commercial vehicle got involved in an accident caused by a driver with no auto insurance or doesn’t have enough of it, uninsured/underinsured motorist coverage will cover the indemnification for bodily injuries or property damage you would’ve received. 


Medical Payments Coverage

Offered by commercial auto insurance if you’re in a fault state, medical payments coverage takes care of your commercial vehicle’s driver and passengers (if there are any) in the event of a vehicular accident. This will pay for hospitalization and medical treatment. Coverage applies regardless of fault. 


Personal Injury Protection Coverage

If you’re in a no-fault state, commercial auto insurance can have personal injury protection coverage. Personal injury protection coverage also pays for treatment and hospitalization. But note that coverage further applies to lost wages, medication, retraining, and rehabilitation. 


Gap Insurance

Gap insurance is useful if your business’s vehicle is leased or is on a loan. If the commercial vehicle is declared a total loss, GAP insurance will cover the difference between the actual cash value of the commercial vehicle and the amount you owe for it. 


Short-Term Commercial Auto Insurance

Short-term commercial auto insurance, also called temporary business car insurance, is a specialty coverage for individuals who occasionally use their personal vehicles for business purposes. 

Inclusions in temporary business car insurance are auto liability coverage, collision coverage, comprehensive coverage, and uninsured/underinsured motorist coverage. 

So how long does the policy’s protection last? It’s up to you actually. You get to decide your short-term commercial auto insurance to provide coverage for one hour, 6 hours, 12 hours, 24 hours, and up to a few days. 


Food Truck Insurance

Your food truck may be your dream business that came true or the beginning of your goal of having your restaurant someday. You probably know that you are driving around a 5-ton truck carrying propane tanks and other flammables, and with one wrong move, your vehicle can blow up like a missile. That is how exposed your food truck is to the risk of explosion and even other accidents. 

Before that happens, consider getting food truck insurance or food trailer insurance to be protected from this and other unfortunate life’s qualms. 

Don't worry. Its annual premium is much less than the trouble you have to face when accidents arise. There are only several factors that affect the cost of food truck insurance: the type of food you sell, the value of your truck and equipment inside, and the add-ons you wish to avail. 

   

Dump Truck Insurance

Another type of commercial vehicle insurance explicitly written for a kind of vehicle is dump truck insurance. Because dump trucks are highly specialized hauling vehicles, they require specialized insurance.

Dump truck insurance protects businesses that own dump trucks from many of the risks that come with operating these trucks, which may include its cargo that may not be material in small quantities.

This offers a mixture of property and liability coverages, which may include the following: auto, general liability, physical damage, downtime, environmental liability, motor truck freight, or cargo. 

 When underwriting policies and pricing is conducted, brokers consider the dump truck route, how they’re used, and the hazards that operate them. Hence, if you are running a for-hire dump truck, take your step now to get yourself, your trucks, and your business insured.


Hotshot Trucking Insurance

Hotshot trucking encompasses delivering goods in a short time frame; thus, goods must be delivered on time. Usually, they pull construction materials, heavy equipment, machinery, or farm materials.

Hauling for hire companies is a high-reward business but also high-risk. Accordingly, hotshot trucking insurance is necessary. This will protect the company from third-party liability claims such as bodily injury or property damage.  


Box Truck Insurance

Many businesses rely on box-type trucks to transport goods such as retail stores, moving companies, couriers, and many more. Although box-type trucks come in various sizes and are lightweight, they usually transport expensive goods such as furniture and appliances. 

Hence, a box truck insurance is required. Typically, the protection it offers is similar to the commercial auto insurance but with additions. First is cargo insurance, which will provide a safety net to your company if, in the case during transportation, the cargo is damaged. Second is a non trucking liability coverage, which will cover liability-related costs if you cause an accident with your box type truck while it is not in dispatch.

  

Commercial Truck Insurance

Trucks are more massive and more challenging to maneuver, which increases the risk of being involved in an expensive accident. Thus, experts designed a protection product specially for it, the commercial truck insurance, or known as semi truck insurance. 

Its coverage is almost the same with regular commercial auto insurance but with more options for add ons such as bobtail insurance, unladen insurance, and MCS90 endorsement

The government even required all trucking companies to file proof of commercial truck coverage for semi trucks and other vehicles used for hauling cargo. 

So how much is commercial truck insurance? There’s no fixed cost. Some factors that influence its premiums are traffic tickets, type of cargo hauled, operating radius, etc. 

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Commercial Auto Insurance Cost

There is no fixed commercial auto insurance cost because every company is different; every business has different needs. However the average commercial auto insurance cost is $79 per month or $950 per year for commercial auto insurance with a $1 million combined single limit auto liability coverage. 

Your policy’s actual price is determined by how much coverage you need and some influencing factors below:

  • Vehicle owner

  • Type of vehicle

  • Vehicle make, model, and year

  • Gross vehicle weight

  • Drivers driving records 

  • Company's claim history 

  • Number of commercial autos being insured

  • Coverage options and add-ons

  • How frequent is the vehicle used


To get a further idea of how much you’ll pay for premiums, look at this table showing the rates of the best commercial auto insurance companies:



Cost per MonthCost per YearBest for
CoverWallet$30$360Commercial auto insurance quotes comparison online
CommercialInsurance.Net$35$420Customizable commercial auto insurance
Geico$40$480Commercial auto insurance with multiple discounts
Progressive$187$2,244Commercial auto insurance for truckers
NEXT$187$2,244Best overall; Commercial auto insurance for truckers
HiscoxHiscox only sells the commercial auto insurance underwritten by CyberPolicy and doesn’t state how much customers pay on averageHiscox only sells the commercial auto insurance underwritten by CyberPolicy and doesn’t state how much customers pay on averageCommercial auto insurance with gap coverage
Thimble$35$420Customizable commercial auto insurance


Consider comparing commercial auto insurance quotes online to get a better idea of how much you’ll pay for premiums. Click the “Get Quotes” button on this page to start.

COMPARE CHEAP COMMERCIAL AUTO INSURANCE QUOTES

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Best Commercial Auto Insurance Companies 

Here are the best commercial auto insurance companies. Read to know their pros, cons, and the cost of premiums for commercial auto insurance. 


CoverWallet Commercial Auto Insurance

Pros

  • Compare commercial auto insurance quotes online

  • Buy a policy online or over the phone

  • You can include motor truck coverage in your commercial auto insurance

  • Name additional insureds for free

Cons

  • Commercial auto insurance is underwritten by partners 

CoverWallet’s commercial auto insurance is available to many businesses in different industries. It’s mainly underwritten for hot shot truckers, box trucks, pickups, and cargo vans. CoverWallet allows you to name additional insureds to your commercial auto policy. Also, you can add motor carrier coverage to it. 

This company has an online quotes comparison platform you can use to get a quick estimate of your commercial auto insurance quote online. In case CoverWallet’s platform can’t find a suitable quote for your business, then it will assign a representative. 

Best for: Commercial auto insurance quotes comparison online

Average cost: $30 per month 

Our rating: 10/10


CommercialInsurance.Net Commercial Auto Insurance

Pros

  • Responsive customer service

  • Compare commercial auto insurance quotes over the phone

  • Customize your commercial auto insurance with the help of a representative

  • Sells commercial auto insurance in partnership with Thimble 

Cons

  • No online commercial auto insurance quotes 

CommercialInsurance.Net underwrites a highly customizable commercial auto insurance. You get to decide how much coverage to get. Moreover, the company allows you to add or remove components from your commercial auto policy. CommercialInsurance.Net offers commercial auto insurance to big and small businesses in different industries. 

Call CommercialInsurance.Net now to compare commercial auto insurance quotes over the phone.

Best for: Customizable commercial auto insurance

Average cost: $35 per month

Our rating: 10/10


NEXT Commercial Auto Insurance

Pros

  • Quick to approve commercial auto insurance claims

  • Best overall

  • Issues an online proof of insurance you can easily show to anyone

  • Great customer service and reputation

  • Outstanding value for money

  • Bundle commercial auto insurance with other policies and get a 10% discount

Cons

  • Couldn’t find any

NEXT sells commercial auto insurance to small sole proprietorships and independent professionals. It doesn’t underwrite the policy but only offers it as a partner of Progressive. Nonetheless, NEXT is worth the try because it processes commercial auto insurance claims fast and issues a certificate of insurance online. 

Best for: Best overall; Commercial auto insurance for truckers

Average cost: $187 per month 

Our rating: 10/10


Progressive Commercial Auto Insurance

Pros

  • Get Progressive SnapShot ProView and enjoy a 5% discount 

  • Provides a breakdown of your overall commercial auto insurance rate

  • Buy commercial auto insurance online

  • Offers MCS90 endorsement 

  • Commercial auto insurance can be bought from NEXT insurance 

Cons

  • Coverage can be too expensive for business with poor commercial auto insurance claims history 

Progressive offers commercial auto insurance to trucking companies, moving companies, and other businesses in the logistics and transportation industry. Its commercial auto insurance offers bodily injury liability, property damage liability, and uninsured/underinsured motorist coverage with $100,000-$2 million combined single limit. 

Best for: Commercial auto insurance for truckers

Average cost: $187 per month

Our rating: 10/10


Thimble Commercial Auto Insurance

Pros

  • Quick to resolve policy issues

  • Low deductibles on auto liability coverage

  • Doesn’t cancel your commercial auto insurance immediately if you do something that’s outside of the scope of the policy terms 

Cons

  • You can only contact Thimble customer service through email or its mobile app

Thimble sells commercial auto insurance in partnership with CommercialInsurance.Net. Even though it doesn’t underwrite the policy itself, try this company because it helps you resolve policy issues quickly. Thimble’s commercial auto insurance is tailored to the needs of mobile food businesses. 

Best for: Customizable commercial auto insurance

Average cost: $35 per month

Our rating: 9/10


Hiscox Commercial Auto Insurance

Pros

  • File and track a claim online

  • Commercial auto insurance comes with numerous inclusions

Cons

  • Below-average customer satisfaction rating 

Hiscox sells commercial auto insurance in partnership with CyberPolicy. This company’s commercial auto insurance offers physical damage coverage, gap insurance, and auto liability insurance. You can endorse trailer interchange and motor carrier insurance for more protection. 

Best for: Commercial auto insurance with gap coverage

Average cost: Hiscox only sells the commercial auto insurance underwritten by CyberPolicy and doesn’t state how much customers pay on average 

Our rating: 9/10


Geico Commercial Auto Insurance

Pros

  • Discounts for the installation of anti-theft devices, safe driving, having a commercial driving license, etc. 

  • Has an online commercial auto insurance calculator

Cons

  • Getting an online quote takes a lot of time 

Geico’s commercial auto insurance is available for general use commercial vehicles and those used for specialized applications such as landscaping and construction work. This company offers multiple discounts. That said, if you’re looking for a company that rewards customers with exemplary business vehicle ownership profile, Geico is a good option. 

Best for: Commercial auto insurance with multiple discounts

Average cost: $40 per month 

Our rating: 8/10


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