California Commercial Auto Insurance: Cost & Quotes From $12/mo

For your best business protection and savings, we recommend bundling GL with some other important coverages on one Business Owners Policy!

For your best business protection and savings, we recommend bundling GL with some other important coverages on one Business Owners Policy!

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In California, the price of commercial auto insurance varies depending on many variables, such as the kind of vehicle, the coverage limits, the location of the business, and the driving records of the company and its personnel. Due to the higher risks involved in operating a vehicle for business purposes, businesses should typically expect to pay more for California commercial auto insurance. 

Commercial vehicle insurance California is a vital part of risk management if you run a company in California that depends on vehicles to carry out its operations. Commercial auto insurance offers significant safeguards in the event of an accident or other unforeseen circumstances. For many businesses, especially small ones with tight budgets, the cost of commercial auto insurance can be a considerable expense.

Fortunately, Californians can choose from various low-cost commercial auto insurance solutions. Depending on the type of vehicle and chosen coverage limits, some insurance companies have policies . Cheap commercial auto insurance California starts at  $12 per month. Businesses can evaluate their coverage requirements and compare quotes from several carriers by working with a certified insurance agent to locate the policy that offers the proper protection at a cost that works within their budget.

This article will examine the price of commercial auto insurance in California and offer details on how companies can request quotes and get reasonably priced coverage.

What Does California Consider a Commercial Vehicle?

A commercial vehicle in California is any motor vehicle, or group of vehicles, used to transport persons and/or goods for hire, payment, or profit. One may run vehicles that move people or things as part of a job or commercial operation.

According to the California Vehicle Code, a commercial vehicle moves goods or people for pay or profit or moves people or goods on behalf of a government or nonprofit organization. A few examples of commercial vehicles are buses, taxis, tractor-trailers, and delivery trucks.

Also, commercial cars must register with the DMV and show a unique commercial license plate per California law. Other rules, such as weight restrictions, safety standards, and driver requirements, also apply to commercial vehicles.

It is vital to remember that some cars, such as those used for ride-sharing services or rental trucks, may not appear to be commercial vehicles if utilized for pay or profit. Overall, California's definition of a commercial vehicle is broad and encompasses a variety of automobiles utilized for transportation or business.

What Are the Requirements for Commercial Auto Insurance in California?

According to California law, every car utilized for business activities or registered in the name of a business must have commercial auto insurance. In the case of an accident, commercial auto insurance coverage shields businesses from the financial burden of liability claims and property damage. Commercial auto insurance quotes California requires the following standards: :

  • Liability Coverage–According to California law, all commercial auto insurance policies must include a minimum liability limit of $15,000 per person, $30,000 per accident, and $5,000 for property damage. Businesses may opt to obtain higher coverage limits to help ensure they are fully protected in the event of a claim.

  • Physical Damage Coverage–Commercial auto insurance packages may also include protection against damage to the insured vehicle. This coverage can shield businesses from paying for the replacement, repair, or maintenance of stolen, vandalized, or destroyed cars.

  • Medical Payments Coverage–Another optional coverage that companies can choose in their commercial auto insurance policies is medical payments coverage. Regardless of who was at fault for the collision, this coverage may assist in covering the costs of the driver and passengers of the insured vehicle's medical bills.

  • Uninsured/Underinsured Motorist–Coverage Uninsured/underinsured motorist protection is an extra optional insurance that companies may take into account. This coverage may offer protection if the covered vehicle gets involved in an accident with a driver who lacks enough insurance to pay for the damages.

What is the Minimum Auto Insurance Required by CA Law?

In order to legally drive a car on a public road, a driver must have a minimum amount of auto insurance according to California law. The California commercial auto insurance requirements are as indicated below: 

Bodily Injury Liability Coverage

In California, you must have at least $30,000 per accident and $15,000 per person in bodily injury liability coverage. That implies that if you cause an accident and someone gets hurt, your insurance coverage will pay up to $30,000 for all injuries caused and up to $15,000 per individual.

Property Damage Liability Coverage

$5,000 in property damage liability coverage is the bare minimum in California. If you cause an accident and cause damage to another person's car or property, this coverage will cover the costs.

Uninsured Motorist Coverage

Uninsured motorist coverage is strongly recommended for California drivers, although not required by law. It can protect you if you get involved in an accident with an uninsured driver who is at fault. Uninsured motorist coverage can still cover hit-and-run accidents where the other driver cannot be identified.

Penalties for Driving Without Insurance

It is against the law and might have serious repercussions for driving in California without insurance. If found driving without insurance, you could face fines, license suspension, or possibly having your car seized. 

However, if you cause an accident and don't have insurance, you might be legally responsible for the other driver's losses, including their property damage and medical expenses.