Commercial auto insurance

If your company owns a car or any other type of road vehicle, you will likely need commercial auto insurance to comply with state laws. Almost every state requires commercial auto insurance for vehicles owned by a business. This includes businesses like delivery services, contractors, and transportation companies.

You can rely on commercial auto insurance for financial protection if you or an employee gets into an auto accident. If you don’t carry commercial vehicle insurance, your business might have to pay for legal fees and medical bills out of pocket, which could get expensive.

Almost every state mandates commercial auto liability insurance for business-owned vehicles. New Hampshire is the only state where car insurance isn’t required, but you must still prove your business could compensate someone in the event of an accident.

Even when business auto insurance coverage isn’t required, it’s still a smart choice. Without it, you could end up paying thousands of dollars in medical bills and other costs. This is because your private insurance won't cover you in the event of a work-related accident.

When choosing liability limits for your policy, you must buy enough coverage to meet your state's minimum requirements.

Commercial auto insurance helps pay for bodily injuries, property damage, and lawsuits in the event of an accident. Depending on the coverage options you choose, it can also cover vehicle theft, vandalism, and other losses and damages.

Specifically, your commercial auto insurance coverage might include:

Commercial auto insurance benefits small business owners across many industries. If a vehicle is registered to your business, then you're likely required to carry this coverage.

All types of vehicles can be insured by commercial auto coverage, including cars, vans, pickup trucks, SUVs, and box trucks. It's designed for both companies and independent contractors who rely on a company vehicle to conduct business.

Some professions need commercial auto coverage more often than others. Consider the following industries and examples:

Construction businesses and installation contractors often rely on commercial auto insurance. It can protect trucks and other vehicles used for excavation, debris removal, hauling equipment, or simply driving to and from jobsites.

For instance, an HVAC contractor rear-ends a sports car while driving your company's van. Your business’s commercial auto policy would help pay for repairs to the sports car and medical treatment for the other driver's injuries.

Consultants depend on commercial auto insurance for protection while driving to meet their clients.

As a case in point, an employee at your IT consulting firm is driving to a client’s home when another driver runs a stop sign and hits your company car. The other driver accidentally let their insurance policy lapse and is not insured.

Your company car policy can pay for the damage to your car caused by the uninsured driver.

Cleaning companies often rely on commercial auto insurance, sometimes in the form of fleet insurance when they own multiple vehicles.

For example, a janitor runs a red light and hits a sedan while driving a company van to a client's office. No one is seriously injured, but the driver of the sedan is brought by ambulance to a local hospital and given X-rays.

The cleaning company's commercial auto insurance policy would pay for the driver's ambulance ride and medical treatment.

Commercial auto insurance protects landscaping companies from costly medical bills, repairs, and legal fees that result from an accident. It can also pay for vehicle damage, depending on the coverage you buy.

For instance, a tree uprooted by a windstorm falls on a lawn care company's truck and breaks the windshield. The company's commercial auto policy includes comprehensive coverage, which pays for a replacement windshield.

While both policies offer protection against lawsuits from an auto accident, commercial auto insurance policies are designed for company cars that cover a lot of ground. Policies typically have higher coverage limits to account for the increased risk.

Personal auto insurance policies only cover claims related to personal use, including your commute and travel unrelated to work. They have lower limits and usually cost less.

If you’re involved in an accident while driving your personal car for work, your insurance company might refuse your claim. That’s why independent contractors and sole proprietors who drive their own car for work should consider commercial auto insurance or HNOA.

If you’re uncertain which policy you need, check with an insurance agent.

Read more about the difference between personal and commercial auto insurance.

Collision coverage pays for damage to your vehicle when you collide with another vehicle or an object, such as a telephone pole. Comprehensive coverage is for damage caused by something other than a collision, such as a fire, natural disaster, falling tree limb, or hitting an animal.

These are optional coverages that you can add to commercial or personal auto insurance for extra protection.

If you want to learn more about auto insurance, you can find additional information in our frequently asked questions about commercial auto insurance.

If you have any other questions about auto coverage or small business insurance options, you can contact an Insureon agent.