If you’re a small business owner who uses a vehicle for work, such as a van, truck or car, you’re going to need commercial auto insurance. That’s because your personal auto insurance won’t cover business-related accidents.
We looked at complaint data from the National Association of Insurance Commissioners for 28 large business insurers to find the best commercial auto insurance.
Best Commercial Auto Insurance Companies in 2024
Acuity A Mutual Insurance Co.
Auto-Owners Insurance
Axis Insurance
Federated Insurance
The Hartford
Nationwide
Sentry
AmTrust Financial
Old Republic Insurance
Travelers
What Is Commercial Car Insurance?
When you drive a car, truck or van for business purposes, you’ll want to financially protect that vehicle with commercial auto insurance. Your personal auto insurance isn’t enough and won’t cover the vehicle if you (or an employee) get into an accident 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.
Factors in Business Auto Insurance Cost
Here’s a look at the pricing factors for commercial auto insurance.
- Company business. The type of business you run impacts the commercial auto insurance rates that you’ll pay. If you mainly work at your office, you’ll pay less than someone who carries tools and equipment in a work van and makes customer calls all day.
- Vehicle. The type and size of the company vehicle affects the insurance rate.
- Driving history. Drivers with good driving records are rewarded with better rates.
- Location. If you work in a bigger city, expect to pay more for your commercial auto insurance than a business that operates in a small town. Drivers in areas with low accident frequency and few car thefts pay less.
- Mileage. How much you typically drive a commercial vehicle impacts rates.
- Coverage choices. Your coverage choices and insurance limits impact your rate.
Do You Need Rideshare Insurance?
If you’re a driver for Uber, Lyft or another rideshare service, you may wish to get additional insurance protection with rideshare insurance. Relying on a personal auto policy and the rideshare company’s insurance can leave a coverage gap.
For example, there is a gap in insurance coverage when a driver has the rideshare company’s app on but is still waiting for a passenger request. The driver won’t be covered by comprehensive and collision insurance from either their personal auto policy or the insurance offered by the rideshare company’s coverage. Getting rideshare insurance fills this gap in coverage.
