Do you have vehicles that are used for work? Commercial auto insurance is often necessary for businesses that operate or use vehicles as a part of the function of the company, or businesses that use vehicles in their day-to-day work life. It may cover just a single car or a fleet of them. Most commercial policies include both liability and property coverage while meeting any state requirements. Note: In many cases, personal auto policies do not apply when the vehicle is being used for business purposes. For more details, please call one of our licensed agents who would be happy to help with your particular situation.
Commercial Auto Insurance – Frequently Asked Questions
- What is commercial auto insurance, and how is it different from personal auto insurance?
Commercial auto insurance covers vehicles used for business purposes. It includes higher liability limits, covers business-specific risks, and can insure multiple drivers and vehicle types, whereas personal auto insurance is designed for individual and family use. - What types of vehicles need commercial auto insurance?
Any vehicle used for business—such as delivery vans, utility trucks, service vehicles, and even personal vehicles regularly used for work (excluding commuting)—may require commercial coverage. - Does my personal auto policy cover occasional business use?
In most cases, no. If you use your personal vehicle for business deliveries, transporting tools, client visits, or rideshare services, a personal policy likely won’t cover you if there’s an accident. A commercial policy or endorsement is recommended. - What does a standard commercial auto policy cover?
Coverage usually includes liability (bodily injury and property damage), medical payments, uninsured/underinsured motorist coverage, physical damage (collision and comprehensive), and optional hired/non-owned vehicle coverage. - What is “hired and non-owned auto” coverage?
This covers liability for vehicles your business uses but doesn’t own, like employee-owned cars used for work tasks or rented vehicles. It doesn’t cover physical damage to those vehicles unless added. - Can I insure a fleet of vehicles under one commercial policy?
Yes. Most insurers offer fleet policies to cover multiple business vehicles under a single policy, making management and billing easier and more cost-effective. - Are employee drivers covered under my policy?
Yes—if they are listed or fall under your “permissive user” provision. Make sure to disclose who drives the vehicle(s) regularly. Some insurers may require a motor vehicle report (MVR) for each driver. - What factors affect my commercial auto insurance premium?
Premiums are influenced by the number and type of vehicles, vehicle usage, driving history of employees, location, coverage limits, and your claims history. - Do I need commercial auto insurance if I’m a sole proprietor?
Yes, if you use your vehicle for business activities. Even one-person businesses—like contractors, real estate agents, or consultants—often need commercial auto coverage for proper protection. - How can I lower my commercial auto insurance costs?
Maintain clean driving records, bundle with other business policies, install telematics or GPS tracking, implement driver safety training, and choose higher deductibles when appropriate.
