What is commercial auto insurance?
- Commercial auto insurance
Commercial auto insurance can pay for property damage and medical bills in an accident involving a business-owned vehicle. It also covers theft and certain types of damage.
When do businesses need commercial auto insurance?
Commercial auto insurance helps pay for medical bills and property damage related to an accident in a business-owned vehicle. It also covers vehicle theft and other types of vehicle damage.
Small businesses are required to purchase commercial auto insurance for business-owned vehicles in almost every state. New Hampshire and Virginia are exceptions, but drivers are still responsible for damages they cause – and the best way to cover that cost is through insurance.
Read more about commercial auto insurance coverage.
Businesses that purchase commercial auto insurance:
- Have a vehicle titled to their business
- Drive to and from worksites
- Carry tools, equipment, or products used for work
- Transport clients or employees
Are vehicles not owned by a business covered?
Hired and non-owned auto insurance covers vehicles your business uses but does not own, such as employee-owned vehicles or a leased truck. Personal auto insurance policies almost always exclude business use. If you get into an accident while driving your personal vehicle for business reasons, your insurer might refuse to cover the resulting damages.
Commercial auto insurance costs
Commercial auto insurance can be inexpensive for a small business. Several factors affect policy costs, including:
- Number of vehicles
- Vehicle type and value
- Level of risk involved
- Claims history
- Employee driving records
- Policy deductible and limits
Learn more about commercial auto insurance
- How are commercial auto insurance premiums calculated?
- Small business insurance and car accidents: Are you covered?
- The difference between personal and commercial auto insurance
Find more answers to frequently asked questions about commercial auto insurance.