Commercial vehicle insurance is a policy that covers damage to the vehicle and liability for amounts, situations, and uses that a personal auto insurance policy doesn't cover. This type of business insurance covers a wide range of commercial cars, trucks, and other vehicles, including company cars and cars used for business purposes.
Like your personal auto policy, commercial vehicle insurance includes coverages like liability, collision, comprehensive, medical payments (or personal injury protection), and uninsured motorist. But there are also differences between a commercial auto insurance policy and a personal auto insurance policy. These differences may include who is eligible, what is covered, what isn't covered, what is excluded, and what the limits are.
If you cause an accident and someone gets hurt or dies, your insurance will pay for it and, in most cases, help you defend yourself in court.
Gives you protection if your car damages someone else's property by accident and in most cases gives you a legal defense.
Most liability policies have different limits for claims for bodily injury and claims for damage to property. A combined single limits policy covers the same amount of money per covered event, no matter how many people are hurt or how much damage is done to property.
Insurance usually pays for the medical bills of the driver and other people in your car who were hurt in a covered accident, no matter who was at fault.
Pays for your injuries and, in some cases, some property damage caused by a driver who didn't have insurance or who hit you and took off. In some cases, coverage for drivers who don't have enough insurance is also included. This is for when the driver who caused the accident doesn't have enough insurance.
Pays for damage to your car caused by things like theft, vandalism, flood, fire, and other things that are covered.
Collision coverage pays for damage to your car if it hits something else or is hit by something else.
Your business cars, trucks, and vans need to be covered by commercial vehicle insurance. A commercial auto insurance policy should be in place for both large fleets and small businesses.
The type of vehicle you need to insure is also a big part of how much your commercial car insurance will cost. Every vehicle is different, and each one has a main job to do. That will change how much it costs to insure because the type of accidents that are most likely to happen will depend on what you need the car for.
| Car Type | Min. Annual Cost Commerical Auto Insurance | Max. Annual Cost Commercial Auto Insurance |
|---|---|---|
| Cab | $5,120 | $10,500 |
| Semi | $8,070 | $12,585 |
| Car | $650 | $2,460 |
| Limo | $4,550 | $6,050 |
| Cargo/Delivery Van | $3,386 | $6,229 |
Each state has its own minimum requirements for commercial car insurance. The minimum price will go up if the minimum coverage goes up. Here are the prices you can expect to pay in a few states.
| State | Min. Annual Cost Commerical Auto Insurance | Max. Annual Cost Commercial Auto Insurance |
|---|---|---|
| California | $590 | $1,850 |
| Florida | $2,586 | $3,396 |
| Maine | $545 | $1,390 |
| Michigan | $5,320 | $8,754 |
| Minnesota | $994 | $2,286 |
| Montana | $675 | $2,566 |
| Oregon | $1,196 | $2,238 |
| Texas | $910 | $2,602 |
Abbreviations used in the table
| State | Passengers (Seating capacity) | Property / Non hazardous | Hazardous |
|---|---|---|---|
| Alabama | 1 to 5: $26,000/$51,000/$11,000
5 to 20: $51,000/$200,001/$31,000 21+: $100,000/$500,000/$50,000 |
$101,000/$301,000/$51,000 | |
| Alaska | BI $501,000; PD $201,000 | BI $501,000; PD $201,000 | |
| Arizona | 1-8: $251,000 CSL; UM $251,000
9-15: $751,000 CSL; UM $301,000 16+: $5 million CSL; UM $301,000 |
21,000-26,000 lbs: $301,000 CSL
More than 26,000 lbs: $751,000 CSL |
$5 million CSL or $1 million CSL, depending on the substance. |
| Arkansas | 1-12: $51,000/$81,000/$31,000
13-20: $51,000/$121,000/$31,000 21-30: $51,000/$161,000/$31,000 31+: $51,000/$201,000/$31,000 |
$51,000/$101,000/$31,000 | $1 million to $5 million, depending on specifics |
| California | 1-7: $751,000
8-15: $1,501,000 16+: $5 million |
Household goods carriers: 250/500/100 or $601,000 CSL
Vehicles less than 10,000 lbs: $301,000 liability Vehicles 10,000 lbs or more: $751,000 single limit |
Intrastate motor carriers petroleum/waste petroleum products:
$500/1,000/200 (other than property being transported) or $1.2 million CSL |
| Colorado | 1-8: $501,000 single limit
9-15: $1.6 million single limit 16-32: $3.1 million single limit 33+: $5.1 million single limit |
Vehicles under 10,000 lbs: $301,000
Vehicles of 10,000 lbs or more: $751,000 |
|
| Connecticut | 1-7: $50,100/$101,000/$11,000 or $101,000 single limit
8-12: $51,000/$151,000/$11,000 or $151,000 single limit 13-20: $51,000/$201,000/$11,000 or $200,000 single limit 21-30: $51,000/$251,000/$11,000 or $251,000 single limit 31+: $51,000/$301,000/$11,000 or $300,000 single limitLivery services:1-14 passengers: $1,501,000 single limit 15+ passengers: $5.1 million single limit |
Intrastate property carriers:
$201,000/$601,000/$101,000 |
|
| Delaware | Taxicabs: BI $26,000; PD $11,000
Limousines and charter buses: BI $11,000; PD $51,000 School buses: BI/PD $1 million CSL; PIP 100/300 |
||
| District of Columbia | Taxicabs: $26,000/$51,000/$11,000
Seating capacity 15 or less: $1.5 million Unrestricted seating capacity: $5,001,000 CSL |
||
| Florida | Nonpublic sector buses: $301,000 CSL or 100/300/50 | 26,000 to under 35,000 lbs: $51,000 single limit
35,000 to under 44,000 lbs: $101,000 single limit 44,000 lbs or more: $301,000 single limit |
|
| Georgia | 1-12: $101,000/$301,000/$51,000
13+: $101,000/$$50,0001,000/$51,000 Intrastate motor carriers: $101,000/$301,000/$51,000 |
||
| Hawaii | 1-7: $101,000/$201,000/$51,000
8 – 25: $101,000/$501,000/$51,000 26+: $101,000/$1,001,000/$51,000 |
$251,000/$751,000/$251,000 | |
| Idaho | 1-24: $1,501,000 single limit
25+: $5.1 million single limit |
$751,000 | $1 million or $5 million, depending on specifics |
| Illinois | 10-13: BI $1,001,000; PD $101,000
14-20: BI $1,501,000; PD $101,000 21-30: BI $2,001,000; PD $101,000 31+: BI $3 million; PD $101,000 Other for-hire passenger vehicles, including medical transport: BI $250,000; PD $50,000 or $300,000 CSL |
Property carriers: $751,000 CSL
Tow truck operations: $500,000 CSL |
$1 million to $5 million, depending on specifics |
| Indiana | 1-15: $1,501,000 single limit
16+: $5 million single limit Contract carriers that transport railroad employees: $5 million Also check federal regulations |
Vehicles 10,001 lbs or greater: $751,000 CSL
Vehicles GVWR of 11,000 lbs or less: $301,000 CSL |
$1 million or $5 million CSL, depending on substance |
| Iowa | 1-15: $1,501,000 single limit
16+: $5 million single limit Taxicabs 1-6 passengers and not operating on a regular route or between specified points: $1,001,000 Also check federal regulations |
Vehicles under 10,000 lbs: $300,000 single limit
Vehicles 10,001 lbs or greater: $750,000 CSL |
$1 million or $5 million CSL, depending on substance |
| Kansas | $101,000/$301,000/$50,000 | $101,000/$301,000/$51,000 | |
| Kentucky | 1-7: $101,000/$301,000/$51,000
8+: $101,000/$601,000/$51,000 |
Motor vehicles with a GVW of: 18,000 lbs or less: $100,000/$300,000/50
Over 18,000 lbs: $100,000/600/50 |
Motor carriers of petroleum or petroleum products in amounts less than 10,000 lbs: $100,000/300/50
Motor carriers of hazardous materials other than above: $1 million CSL |
| Louisiana | Passenger buses: 250/500/10
Trucks and passenger carrying vehicles: 250/500/10 |
Tow trucks or wreckers: $501,000 CSL | |
| Maine | School buses
1-30: $501,000 single limit 31+: $1.1 million single limit Intrastate vehicles 1-3: $126,000 single limit or 50/100/25 4-7: $301,000 single limit 8-15: $751,000 single limit 16-30: $1,501,000 single limit 31+: $2.1 million single limit Interstate vehicles 1-15: $1,501,000 single limit 16+: $5.1 million single limit |
Property carriers: $351,000 single limit
Rental vehicles: 50/100/25 Rental trucks with a registered gross weight of 26,000 lbs or less, rented or leased for fewer than 30 days: $125,000 single limit or 50/100/25 |
|
| Maryland | 1-7: $51,000/$101,000/$21,000 or $121,000 CSL
8-15: $76,000/$201,000/$50,000 or $251,000 CSL 16+: $76,000/$401,000/$101,000 or $501,000 CSLTaxicabs: $26,000/$51,000/$11,000 |
$1 million to $5 million, depending on specifics | |
| Massachusetts | 1-15: $1,501,000 single limit
16+: $5 million single limit 1-32 passengers, sightseeing or charter bus: $1,501,000 single limit |
||
| Michigan | 1-9: $1.1 million CSL
10-15: $2.1 million CSL 10-15: $1.6 million CSL 16+: $5.1 million CSL, personal and property protection also requiredLimousines: $1.1 million CSLTaxicabs: $300,000 CSL |
Non-hazardous: $500,000 CSL
Non-hazardous: 100/300/50 |
Freight vehicles of 10,100 lbs or more: $1 million CSL
Freight vehicles under 10,100 lbs, hazardous: $1 million CSL |
| Minnesota | Passenger carriers (must be at least equal to 49 C.F.R. 387.33):
1-15: $1,501,000 (including limousines) 16+: $5.1 million Limousines: Minimum aggregate $1.6 million BI; $101,000 PD |
Non-hazardous: 100/300/50 | $1.1 million or $5.1 million CSL, depending on substance (as prescribed by 49 CFR 387.7) |
| Mississippi | Limits shall be no less than requirements of 49 CFR 387:
1-15: $1,501,000 single limit 16+: $5.1 million single limit |
Vehicles under 10,000 lbs : $300,000 single limit
Vehicles 10,001 lbs or greater: $750,000 CSL |
Hazardous Substances: $1 million or $5 million CSL, depending on substance |
| Missouri | Interstate passenger carriers:
1-15: $1,501,000 16+: $5.1 million Intrastate passenger carriers: 1-12: 100/300/50 13+: 100/500/50 |
Interstate property carriers: Gross weight of 10,000 or more: $750,000
Intrastate property carriers: $101,000/$301,000/$51,000 Tow trucks: $501,000 CSL (MO ST 304.154) |
Hazardous substance carriers: $1 million or $5 million depending on substance 7 MO ADC 265-10.030; 10 MO ADC 25-6.263(4)(A) |
| Montana | Passenger carriers:
1-7: BI & PD $101,000 8-15: BI & PD $501,000 16-26: BI & PD $751,000 |
Under 10,000 lbs: BI & PD $101,000
Over 10,000 lbs: BI & PD $501,000 Tow trucks Class A: $301,000 Class B: $501,000 Class C: $751,000 |
|
| Nebraska | 1-15 passengers: $1,501,000 CSL
16+ passengers: $5.1 million CSLTaxis and limos: $500,000 CSLBus K1 – 1-15 $1.6 million Bus K2 – 16+ $5.1 million |
Carriers of household goods (group 2): $751,000 | |
| Nevada | 1-7: $1,501,000 CSL
8-15: $1,501,000 CSL 16+: $5.1 million CSLHorse-drawn vehicles/taxicabs: 250/500/50 |
$501,000 or $751,000 CSL, depending on specifics
GVW 10,001 to 26,000 lbs: $301,000 CSL GVW 26,001 to 81,000 lbs: $751,000 CSL |
Hazardous: 300/2,500/1,000 or 300/2,500/5,000, depending on specifics |
| New Hampshire | 1-7: $101,000/$701,000/$101,000
8-12: $101,000/$1501,000/$101,000 13-20: $101,000/$5001,000/$101,000 21-30: $101,000/$5001,000/$101,000 30+: $101,000/$5001,000/$101,000 |
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| New Jersey | 1-12: BI $26,000/$101,000; PD 10/25
13-20: BI $26,000/$201,000; PD 10/25 21-30: BI $26,000/$401,000; PD 10/25 31+: BI $26,000/$601,000; PD 10/25Autocabs (limousines or livery service): $1,501,000 CSLJitneys (shared taxis that are for hire): 10/100/5 |
Tow trucks:
GVW up to 27,000 lbs: $751,000 CSL GVW 27,000+: $1,001,000 CSL Must maintain garage keepers liability ins. of at least $101,000 and on-hook coverage of at least $100,000 (auth. ins. only) |
|
| New Mexico | 1-6: $1 million CSL
7-15: $1.5 million CSL 16 or more: $5 million CSL |
$750,000 | $5 million |
| New York | 1-12: $101,000/$301,000/$51,000
12+: $101,000/$501,000/$51,000 |
$101,000/$301,000/$51,000 | $1 million or $5 million single limit |
| North Carolina | 1-15: $1,501,000 CSL
16+: $5.1 million CSLSchool buses: $1.1 million to $1,501,000 CSL, depending on specifics Taxis: 100/300/50 |
Household goods GVW 26,000 lbs or less: 100/300/50 (or a higher amount as may be required by federal law)
Household goods GVW over 26,000 lbs: $750,000 CSL |
|
| North Dakota | 1-15: $1,501,000 CSL
16+: $5 million CSLAlso check federal regulations |
Vehicles under 10,000 lbs : $301,000 single limit
Vehicles 10,001 lbs or greater: $751,000 |
$1 million or $5 million CSL, depending on substance |
| Ohio | 1-15: $1,501,000
16+: $5,001,000Intrastate for-hire carriers, no passengers: $751,000 Specified federal regulations apply |
$1 million or $5 million, depending on specifics | |
| Oklahoma | Intrastate:
1-6: $101,000 CSL 7-9: $751,000 CSL 10-15: $1,001,000 CSL 16+: $5,001,000 CSL |
Under 10,000 lbs: $301,000 CSL
Over 10,000 lbs: $751,000 CSL Carriers of restricted property, including sand, rock, gravel, etc.: $351,000 CSL |
$1 million to $5 million CSL, depending on the specifics (as specified in 49 CFR 387.9) |
| Oregon | $751,000 CSL | $751,000 CSL all types | |
| Pennsylvania | 1-15: $15,100/$31,000/$6,000 CSL
16-28: $1 million CSL 29+: $5 million CSL |
$301,000 CSL | |
| Rhode Island | Public motor vehicles (excludes charter carriers): $1,501,000 BI; $101,000 PD
Common and contract: 250/500/25 Taxicabs and public livery: $301,000 CSL or 250/500/100 split limit Jitneys: $301,000 CSL or equivalent split limit |
Common and contract: 250/500/25
Public motor vehicles: 1.5 million BI; 101,000 PD Federal requirements apply when not in conflict with Rhode Island laws |
|
| South Carolina | Interstate passenger carriers seating capacity:
1-15: $1,501,000 16+: $5,001,000 Intrastate seating capacity: 1-7: 25/50/25 8-15: 25/100/25 16+: 25/300/25 |
Vehicles under 10,000 lbs: $501,000 single limit
Vehicles over 11,000 lbs or more GVW: $751,000 single limit Property: $301,000 |
$1 million or $5 million depending on substance |
| South Dakota | Passenger carriers:
1-15: $1,501,000 single limit 16+: $5 million single limit |
Vehicles under 10,000 lbs : $301,000 single limit
Vehicles over 10,000 lbs : $751,000 combined single limit |
$1 million or $5 million combined single limit, depending on substance |
| Tennessee | 1-15: $1,501,000 CSL
16+: $5 million CSL |
$750,000 CSL
Under 11,000 lbs: $301,000 CSL |
$1 million to $5 million CSL, depending on specifics. |
| Texas | 16-26: $501,000 single limit
27+: $5.1 million single limit |
26,000 lbs or less: $301,000 single limit
Over 26,000 lbs: $501,000 single limit |
$1 million or $5 million single limit, depending on specifics. |
| Utah | 1-15: $1,501,000 CSL
16+: $5 million CSL |
Vehicles under 11,000 lbs : $301,000 single limit. | $1 million or $5 million CSL, depending on substance |
| Vermont | 1-7: $51,000/$101,000/$51,000
8-12: $51,000/$251,000/$51,000 13-20: $51,000/$301,000/$51,000 21-30: $51,000/$351,000/$51,000 31+: $51,000/$301,000/$51,000School bus seating capacity:1-9: $101,000/$301,000/$51,000 10+: $301,000/$50,1000/$51,000 |
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| Virginia | 1-6: $351,000
7-15: $1,501,000 16+: $5 millionTaxicabs: $126,000 |
Intrastate property carriers: $751,000
Vehicles with GVW in excess of 7,500 but less than 10,000: $300,000 Vehicles with GVW over 10,000 pounds: $751,000 Household goods carriers: $751,000 |
|
| Washington | 1-15: $101,000/$301,000/$51,000
16+: $101,000/$501,000/$51,000Auto transportation companies1-16: $1,501,000 CSL 17+: $5 million CSLPrivate nonprofit bus transportation providers1-15: $501,000 CSL 16+: $1 million CSL |
Vehicles under 10,000 lbs: $301,000 CSL
Vehicles over 10,000 lbs: $751,000 CSL |
Under 10,000 lbs: $301,000 CSL
Garbage and refuse collection: $1 million or $5.1 million, depending on substance. |
| West Virginia | 1-5: $101,000/$201,000/$26,000
6-12: $201,000/$50,1000/$26,000 13-20: $201,000/$601,000/$50,000 21-30: $201,000/$75,1000/$50,000 31+: $201,000/$901,000/$75,000 |
$201,000/$601,000/$101,000 | Freight GVWR 10,000 lbs or more: $1 million or $5 million depending on specifics |
| Wisconsin | 1-7: $101,000/$301,000/$51,000
8-12: $101,000/$351,000/$51,000 13-20: $101,000/$401,000/$51,000 21-30: $101,000/$451,000/$51,000 31+: $101,000/$501,000/$51,000 |
Vehicles under 10,000 lbs: $301,000 CSL
Vehicles over 10,000 lbs: $751,000 CSL |
$5,001,000 or $1,001,000, depending on type of substance |
| Wyoming | BI/PD $751,000 CSL or greater as required by federal law |
Some basic things that affect how much your commercial car insurance costs are:
Industry
Not all businesses have the same amount of risk. A business that does excavation and has multiple commercial vehicles has a lot more exposure than a business that does accounting and sometimes uses a car to run errands.
Location
A commercial vehicle driven in a big city might cost more to insure than one driven in the country. Also, areas with more claims than average tend to have higher prices.
Type of vehicles
Your premium will depend on how old, big, and how often you use your car. For example, an older delivery van that is only used occasionally by a bakery will usually cost less to insure than a new cargo van that is used more often by a company that transports expensive goods. And the choice of coverage matters. If you choose to have physical damage coverage, your premium will be based on how much your car is worth.
Driving history
Most insurance companies run a motor vehicle report on all drivers who have access to your listed commercial vehicles. Your premium will go up if you have a lot of accidents or traffic violations. It's common for your carrier to look at your driving record from the last three years.
Coverage type
The cost of your business car insurance will go up as you add more coverage. For example, a policy with minimum liability limits of $1 million will have a much higher premium than a policy with liability limits of $1 million.
You could also use these factors to help you make business decisions that are good for your budget, like negotiating business contracts, hiring employees, and buying vehicles.
| Acuity A Mutual Insurance Co. | Clear Blue Insurance |
| Auto-Owners Insurance | Erie Insurance |
| Axis Insurance | RLI Insurance |
| Federated Insurance | The Hanover Insurance Group |
| The Hartford | CNA |
| Nationwide | Zurich |
| Sentry | Liberty Mutual |
| AmTrust Financial | Great American Insurance |
| Old Republic Insurance | Allstate |
| Travelers | American Transit Insurance Co. |
| Canal Insurance | Berkshire Hathaway Inc. |
| EMC Insurance | Chubb |
| The Cincinnati Insurance Cos. | State Farm |
This insurance policy can cover any car owned by a business and driven by an employee or the owner. This insurance policy is necessary to protect your financial interests by paying for all of your debts if something goes wrong.
The third-party liability cover of a commercial vehicle insurance plan pays for damage to property, accidental injury or death of a third party, and damage to their body. A commercial vehicle insurance plan will pay out in full if the insured vehicle is stolen or destroyed in an accident.
Commercial auto insurance is a must-have for small business owners who use their car for business purposes, such as driving to work sites or to meet clients, delivering goods, or hauling tools or supplies, or who have employees drive the car.
Commercial auto insurance is available in almost every state for cars owned by a business. Only in New Hampshire and Virginia do you not have to have car insurance. But drivers are also responsible for any damage they cause. Even though commercial auto coverage is not required, it is still a good choice. If you don't have it, you might end up spending a lot of money on hospital bills and other costs.
Small businesses often have trouble telling the difference between a personal vehicle and a business vehicle. Small business owners and employees will sometimes use their own cars for business. For example, they might use their own car to get to job sites, move equipment, or deliver goods.
Almost always, business use is not covered by personal auto insurance. That means you won't be covered if you get in an accident on your way to work (with the exception of your commute). Personal cars are not covered by business auto insurance. If you or your employees often use their own cars for work, you might want to get insurance that covers both.
Hired and non-owned auto (HNOA) insurance protects against liability for cars that an employer uses but does not own. That encompasses:
Not sure if you need personal auto insurance or commercial auto insurance? Here are some things to think about when figuring out what kind of insurance you need.
Who owns the car and drives it?
If your car is owned by a business, you'll probably need a commercial auto insurance policy. If you own your own business and are the only employee, you may only need a personal auto insurance policy. What kind of policy you need also depends on how often and for what you use your car.
How is the vehicle used?
If you use your car for business, you'll probably need a commercial auto insurance policy. If you own your own business and only go to one or two job sites a day, or if you only use your car to get to and from work, you may only need a personal auto insurance policy.
What is the type and weight of the vehicle?
If you drive a heavy vehicle, like a dump truck, tow truck, semi-truck, or semi-truck with a commercial trailer, you might need a commercial auto insurance policy. When they get into an accident, heavy-duty vehicles can cause more damage and sometimes need special insurance coverage.
What are the required business liability limits?
If your business vehicle needs higher liability limits, you probably need a commercial auto insurance policy. Most commercial auto insurance policies have higher limits than individual policies.
Most personal auto insurance won't cover accidents that happen at work. Personal auto insurance is required in almost every state, but your policy might not cover damage caused by accidents that happen when you or your employees use your personal vehicles for work. Because of this, most states require small business owners with company-owned cars to get commercial auto insurance.
The most important thing about commercial vehicle insurance is that it protects you from any costs you might have to pay and covers you for damage or loss caused by natural disasters like earthquakes, floods, etc., or by man-made disasters like theft, robbery, fire, or any act of violence or terrorism.
The auto insurance rates published in this guide are based on the results of research completed by Way.com’s data team. Using a mix of public and internal data, we analyzed millions of rate averages across U.S. ZIP codes.
Quotes are typically based on a full coverage policy average unless otherwise noted within the content.
These rates were publicly sourced from insurer filings and should be used for comparative purposes only — your own quotes will differ. Given this, it’s important to go through our insurance steps form to find how much you can save with way.com
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