Commercial auto insurance covers vehicles your business owns, leases, or uses for work - trucks, vans, company cars, and fleets. It pays for liability when a business vehicle causes injury or property damage, and covers physical damage to the vehicle itself from collisions or other events. If your personal auto policy discovers you've been using your car for deliveries, hauling materials, or transporting clients, they can deny the claim entirely - commercial auto fills that gap.
We're not just selling insurance. We're here to make sure you understand your options, feel confident in your coverage, and have someone in your corner when it matters most.
Who needs commercial auto?
Any business that owns a vehicle titled in the company name needs a commercial auto policy - your personal auto insurance won't cover it. Beyond that, contractors who haul tools and materials, delivery services, landscapers, HVAC companies running service vans, and any business with employees driving for work purposes all need commercial auto. Even if your employees drive their own cars for work errands, you have exposure - hired and non-owned auto coverage fills that gap. Your state sets minimum liability limits for commercial vehicles, but most contracts and prudent risk management call for $1 million combined single limit. In our experience, contractors are especially underinsured on commercial auto - one serious at-fault accident with a loaded work truck can easily exceed minimum limits. We shop top-rated commercial carriers to find the right fit for your fleet size and usage.
What does commercial auto cover?
- Liability for bodily injury and property damage your business vehicle causes
- Collision coverage - damage to your vehicle from an accident regardless of fault
- Comprehensive coverage - theft, vandalism, fire, hail, and windshield damage
- Medical payments for driver and passengers in your business vehicle
- Uninsured/underinsured motorist coverage
- Hired auto - vehicles you rent or borrow for business use
- Non-owned auto - employee-owned vehicles used for business errands
- Towing and roadside assistance
What commercial auto does NOT cover
- Cargo being transported - requires inland marine or motor truck cargo coverage
- Personal use of a business vehicle outside policy terms (check your policy)
- Vehicles not listed or scheduled on the policy
- Employee injuries - those are covered under workers compensation
- Pollution or hazardous material cleanup from a transported load
- Wear and tear, mechanical breakdown, or tire damage (normal use)
- Tools and equipment inside the vehicle - those need an inland marine floater
What does commercial auto cost?
Commercial auto typically runs $1,200 to $4,000 per vehicle per year, but pricing swings widely based on vehicle type, driver records, and how far your vehicles travel. A contractor's pickup with a clean-record driver might cost $1,200–$1,800, while a heavy-duty work truck or a driver with violations can push past $4,000. Fleets of 5+ vehicles may qualify for fleet discounts. The biggest factors are driver MVR records, vehicle weight and type, radius of operation, and your claims history. We shop top-rated carriers because commercial auto pricing is one of the most competitive - and variable - lines in commercial insurance.
Frequently asked questions
Your standard commercial auto policy only covers vehicles you own or lease. If employees use their personal vehicles for work - running to the supply house, meeting clients, making deliveries - you need hired and non-owned auto coverage added to your policy. Without it, if an employee causes an accident while on a work errand, your business could be liable with no insurance to respond.
Most personal auto policies exclude regular business use beyond commuting. If you're hauling materials, making deliveries, or transporting clients, your personal carrier can deny a claim. If the vehicle is titled in a business name, it absolutely requires a commercial auto policy. Even sole proprietors should review their personal policy's business-use exclusions carefully.
State minimums are typically dangerously low for a work truck. Most general contractors require their subs to carry $1 million combined single limit (CSL). A serious accident with injuries can easily generate claims exceeding $100,000. We recommend at least $500,000 CSL for most contractors, and $1 million if you work on commercial projects or for general contractors who require it.
No. Commercial auto comprehensive coverage covers the vehicle itself - not the tools, equipment, or materials inside. A contractor's tools and equipment need an inland marine (tools and equipment floater) policy. We write these regularly for contractors and can bundle the quote with your commercial auto.
Significantly. Each driver on the policy is rated individually. A clean MVR keeps costs low, while DUIs, at-fault accidents, or multiple violations can double or triple the per-vehicle premium - or make a driver uninsurable on standard markets. We pull MVRs on all drivers at quoting to identify issues before they surprise you at renewal.
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Related coverage to consider
- General Liability - Covers your business if a customer, vendor, or visitor is injured at your location, or if your work damages someone else's property.
- Workers Compensation - Covers medical expenses, rehabilitation, and lost wages for employees injured on the job.
- Umbrella Insurance - Adds an extra layer of liability protection above your home and auto policy limits.
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Reviewed by
Sheilia Royal, Agency Principal / Licensed Agent
Licensed in KY, IN & TN | 20 years experience | Last reviewed: March 2026