For your business best protection and savings, we recommend bundling GL with some other important coverages on one Business Owners Policy!
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:
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.
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
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.
The policyholder is the one who owns the commercial auto insurance policy and pays for it. In other words, you.
A commercial auto is a vehicle used for business purposes and is currently registered as a business property.
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 pertains to any physical harm your business’s vehicle inflicts to third parties such as cuts, lacerations, fractures, etc.
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.
A third party is a person or entity not part of your business. This can be members of the public, customers, vendors, etc.
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 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 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.
An endorsement is a clause, a provision, or an agreement that changes the functions or coverages of commercial auto insurance.
Exclusions are situations or occurrences wherein the coverage of commercial auto insurance doesn’t apply.
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:
Bus
Dump trucks
Garbage trucks
Tank trucks
Box trucks
Logging trucks
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:
Compact tractors
Telehandlers
Boom lifts
Wheeled scrapers
Fellers
Trenchers
Asphalt pavers
Cold planers
Motor graders
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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Commercial auto insurance is composed of different coverages. Refer to the image below for a quick reference.
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 |
Florida | None | $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 Jersey | None | $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 |
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.
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.
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 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
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.
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.
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 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, 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.
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.
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 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.
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.
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.
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 Month | Cost per Year | Best for | |
---|---|---|---|
CoverWallet | $30 | $360 | Commercial auto insurance quotes comparison online |
Tivly | $35 | $420 | Customizable commercial auto insurance |
Geico | $40 | $480 | Commercial auto insurance with multiple discounts |
Progressive | $187 | $2,244 | Commercial auto insurance for truckers |
NEXT | $187 | $2,244 | Best overall; Commercial auto insurance for truckers |
Hiscox | Hiscox only sells the commercial auto insurance underwritten by CyberPolicy and doesn’t state how much customers pay on average | Hiscox only sells the commercial auto insurance underwritten by CyberPolicy and doesn’t state how much customers pay on average | Commercial auto insurance with gap coverage |
Thimble | $35 | $420 | Customizable 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.
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Here are the best commercial auto insurance companies. Read to know their pros, cons, and the cost of premiums for commercial auto insurance.
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
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
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
No online commercial auto insurance quotes
Tivly (formerly 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. Tivly offers commercial auto insurance to big and small businesses in different industries.
Call Tivly 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
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
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
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
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
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
You can only contact Thimble customer service through email or its mobile app
Thimble sells commercial auto insurance in partnership with Tivly. 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
File and track a claim online
Commercial auto insurance comes with numerous inclusions
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
Discounts for the installation of anti-theft devices, safe driving, having a commercial driving license, etc.
Has an online commercial auto insurance calculator
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
Terrible customer service. I got this insurance for my Amazon store when I ran one, took a break and cancelled all my subscriptions. I called these guys and they recommended sending an email. They never responded and have been charging me since then. Definitely going to dispute via the bank. Hate when businesses take advantage of other small businesses for their own gain.
I purchased a year long policy for my small business I paid for the year up front. First they sent me the incorrect paperwork and acted as if I had something to do with the mistake. About three weeks later I received a bill for the policy. I then sent countless email as the payment did clear my account. About a week later I'm told they have no record of my payment. Now I have to send any documents proving I said then. It went on for weeks. More requests of proof from this person then another. Every conversation had an under lying tone of me being dishonest. Finally I just gave up with them and filed a despite with my bank which took all of three days.. So now I'm continuing to receive emails that my policy is past due and will be cancelled. Funny, I was told I didn't have a policy because they couldn't locate it.
Purchased the General Liability policy I needed to fulfill a contract for my hiring party. Simply Business made it very easy to complete an application and review multiple quote options. Ended up purchasing a policy for 1/2 of what I originally was told by my agent.
I insured my small business with them from early 2016 to January 2022. I had a workman's compensation policy with them the entire time for my staff of approximately 10 people which fluctuated up and down minimally over the years. We ran a very safe operation and never had so much as one claim. I sold my business in early 2022 and cancelled my policy which triggered a final audit of $2871.00 which was owed back to me. Of course I dissolved my LLC immediately after selling the business and thus closed my bank checking account at the advise of my accountant. Though my name was on the business policy, Employers Preferred Insurance Company refused to issue a check to me directly as the policy holder due to...you guessed it, policy. Long story short, if you sell your business keep a small amount deposited in the checking account because it's almost a guarantee that companies such as Employers will use their policy to weasel their way out of money owed after the dissolution of a business. I should have known that I would be treated a just another number shortly after I signed with them as the sales agent just disappeared after I was set up for an online account to manage my policy. My next business venture will entail me working with an actual insurance agent who has an office in an actual brick and mortar building!
Long term insurance claim denied for my mother after 31 years of paying. Please never give this company a dime. You will not get your money back!