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Summary: Commercial Auto Insurance Companies of December 2024
Best Commercial Auto Insurance Companies
What Is Commercial Auto Insurance?
Commercial auto insurance is a form of small business insurance for vehicles used for work purposes. It provides liability insurance and can also include other coverages for the vehicle, driver and passengers. It’s necessary because personal car insurance typically won’t cover an accident you (or an employee) get into while driving for business.
Commercial auto insurance can cover everything from company cars to food trucks to delivery vans.
What Does Commercial Auto Insurance Cover?
Here’s a look at the types of coverage available with commercial auto insurance:
- Property damage liability pays for damages to another person’s property, such as their car, when you are at fault in an accident.
- Bodily injury liability pays for the injuries you cause another person when you’re responsible for an accident.
- Combined single limit (CSL) offers one limit for property damage claims and bodily injury claims.
- Collision insurance pays for damage to your business vehicle when it hits another car or an object, such as a pole.
- Comprehensive insurance pays for damage caused by weather, fire, falling objects (such as tree branches) and other problems. It also covers vehicle theft.
- Medical payments and personal injury protection (PIP) pay for the cost of medical care for you and your passengers, no matter who was at fault.
- Uninsured motorist coverage pays for your and your passengers’ injuries if your vehicle is struck by an uninsured driver.
Do I Need Commercial Auto Insurance?
If you are driving a vehicle for business purposes, you will need commercial auto insurance. Your personal car insurance policy won’t pay a claim if you get into an accident while driving your car for work.
Here are some examples when you need a commercial auto insurance policy:
- The vehicle is solely used for work (for example, a company car).
- You transport goods or people in your vehicle.
- You transport tools or equipment in your vehicle.
- Your employees drive your business vehicle.
- The vehicle is owned by the company.
- You conduct a business service with your vehicle.
Related: How commercial auto insurance works
How Much is Commercial Auto Insurance?
The average cost of commercial auto insurance is $147 per month, according to Insureon. More than a third (37%) of Insureon customers pay less than $100 per month, about a quarter (26%) pay between $100 and $200 per month and 37% pay more than $200 per month for commercial auto insurance.
Average Commercial Auto Insurance Costs by Industry
Your type of business will impact the cost of your commercial auto insurance policy. For instance, if you use a passenger car for your real estate business, it will generally cost less to insure than if your policy is for a cement mixer or tanker truck for a construction company.
Here are the monthly averages for commercial auto insurance for various industries.
| Industry | Average monthly cost |
|---|---|
| Auto services | $69 |
| Building design | $122 |
| Cleaning services | $163 |
| Construction and contracting | $173 |
| Consulting | $151 |
| Food and beverage | $152 |
| Installation professionals | $184 |
| IT/Technology | $198 |
| Landscaping | $180 |
| Media and advertising | $92 |
| Nonprofits | $123 |
| Professional Services | $139 |
| Real Estate | $138 |
| Retail | $138 |
| Wholesale | $102 |
Key Factors That Affect Commercial Auto Insurance Costs
Here’s a look at the pricing factors for commercial auto insurance.
Methodology
We evaluated 28 companies based on commercial auto insurance complaints made to state regulators in 2021. We used complaint data from the National Association of Insurance Commissioners. Each state’s department of insurance is in charge of logging and monitoring complaints against companies operating in their states.
Other Commercial Auto Insurance Companies We Rates
| Company | Forbes Advisor Rating |
|---|---|
| Canal Insurance |  4.0 stars |
| EMC Insurance | 4.0 stars |
| The Cincinnati | 4.0 stars |
| AIG |  3.5 stars |
| Clear Blue | 3.5 stars |
| Erie | 3.5 stars |
| RLI | 3.5 stars |
| The Hanover | 3.5 stars |
| CNA |  3.0 stars |
| Progressive | 3.0 stars |
| Zurich | 3.0 stars |
| Liberty Mutual |  2.5 stars |
| Great American |  2.0 stars |
| Allstate Corp |  1.0 star |
| American Transit |  0.5 stars |
| Berkshire Hathaway | 0.5 stars |
| Chubb | 0.5 stars |
| State Farm | 0.5 stars |
Best Commercial Auto Insurance Frequently Asked Questions
What types of vehicles are covered under commercial auto insurance?
Commercial auto insurance generally covers work vehicles that are owned, rented or leased by a business and used for work-related purposes, such as delivering goods and transporting tools and equipment. This includes vehicles such as cars, box trucks, pickup trucks, dump trucks, food trucks, vans, funeral home vehicles and courtesy vehicles for repair shops.
Why is commercial insurance so expensive?
Commercial auto insurance costs more than personal auto insurance because insurance companies see driving for work-related purposes as riskier than driving for personal use. For example, a business consultant who drives to meet with several clients every week is more likely to have an accident than someone who drives to work once a day.
Business insurance covers many situations and has high limits, which can also make the policy pricey compared to personal insurance policies.
How is commercial auto insurance different from personal auto insurance?
Commercial auto insurance is intended specifically for vehicles used for business purposes. Because of the extra risks associated with business use, commercial car insurance is generally more expensive than a comparable personal auto policy.
You’ll find business-specific coverage options and sometimes discounts for using a telematics program to track your fleet of vehicles.
What is the difference between commercial and business auto insurance?
Many insurance companies use the terms commercial auto and insurance and business auto insurance interchangeably. Both describe the insurance policy you should have on a business-owned vehicle or a car, truck or van used for commercial purposes.
Some insurers offer a business-use endorsement you can add to a personal car insurance. This endorsement covers your personal car for minor business use, such as if you’re a consultant and drive to meet clients. A separate commercial auto policy is normally needed if you use the car for other business purposes.
How can I get the cheapest commercial auto insurance?
You can get the cheapest commercial auto insurance by shopping around and getting quotes from multiple companies. Compare the same coverage limits with each insurer to find out which one offers the best rates for business vehicles.
Also, look for savings by packaging or bundling your commercial auto insurance with other types of business insurance, such as commercial property and general liability.
