How much does commercial car insurance cost?

Learn how the cost of Commercial Auto insurance is calculated and get tips to reduce your premium.

Karen Solomon
By Karen Solomon
Published Oct 17, 2025
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Your exact monthly cost for commercial vehicle insurance depends on a number of factors, including what kind of work you do, where you do business, your driving record and the type of vehicles you use for your job. NEXT’s trusted partners can connect business owners with commercial auto insurance at a great price that helps provide liability protection for business vehicles like cars, commercial trucks and vans.

Keep reading to understand how costs are calculated and to get tips that could lower your monthly price.

Jump ahead to learn:

Business vehicle insurance is required in almost every state. Most business owners are required to have some type of liability coverage for bodily injury, property damage and medical expenses if they or their employees drive a company vehicle. Some states also require uninsured/underinsured motorists coverage and medical payments coverage (also known as personal injury protection).

How insurance companies calculate commercial vehicle insurance cost

The exact cost of commercial vehicle insurance for your business is determined by several factors, including:

1. The type of business driving you do

Professions that drive more for work — even if it’s your personal vehicle for business use — such as real estate agents, will usually spend more on business vehicle insurance than, say, an accountant or other office worker who drives less.

If your work involves driving to job sites on other people’s property, such as a cleaner or janitor, you usually face more risk and may likely have higher insurance premiums.

How often you drive and how many miles you drive can also factor into your business vehicle insurance cost.

2. The number of vehicles you have

If you own a cleaning company with two cars, a van and a truck that you use for business, your business car insurance cost will likely be more than if you have only one car.

3. The types of vehicles you drive

Cars, trucks or vans may have different rates in your state. And the make, model and year of your vehicle can also influence your commercial auto insurance coverage.

4. The location of your business

If you’re a small business owner in Miami you may pay more for business vehicle liability insurance than if you worked in a small town in Minnesota.

More populated areas often have higher property prices, more crime — and therefore, more risk.

5. Your insurance claims history

Your record of losses and claims can have an impact on your business vehicle insurance price.

For example, if your employees have backed over a few too many mailboxes, you may see an increase in your premium at renewal time.

6. Your driving record

The number of years you’ve driven without an incident can impact your commercial auto insurance policy rates.

Note: It’s important to provide the most accurate information about your business when you get a quote for business vehicle insurance. This can help make sure you get the coverage that’s right for you and help process claims without delays.

The best way to learn exactly what you’ll pay for your monthly or annual cost is to get a free commercial auto insurance quote with our partners online. It’s no obligation, and it takes about 10 minutes to see your exact price.

3 tips to help reduce the cost of Commercial Auto insurance

You can take several steps to lower or prevent a higher deductible on your small business vehicle insurance, including:

1. Choose the right insurance policy limits and deductibles

Higher coverage limits on your commercial car insurance policy can offer more protection. But higher limits will almost always increase the cost of your policy.

While lower limits will save you money on your coverage options, if you set your limits too low you could leave yourself vulnerable to more financial loss after a covered event.

2. Keep your risk level low

A reliable vehicle and solid driving skills can help make you a safer driver. It can also limit the need to file insurance claims which could raise your insurance cost.

If your small business relies on driving for work, do all that you can to ensure safety along the road. For example, you might:

  • Train your employees on safe driving techniques.
  • Invest in reliable work vehicles.
  • Conduct regular vehicle maintenance and safety inspections.

3. Learn from previous claims

Analyze your previous claims to learn what you could have done to avoid those risks.

For instance, if you filed an insurance claim for a trailer that was unhitched on the way to a work site, train your employees on proper procedure to hitch a trailer to a truck.**

How to check prices for your commercial car insurance cost

Start a free, no obligation quote with NEXT’s partner to see exactly what you’ll pay for the type of coverage you need for your business vehicles. Answer some questions about how you drive for business to see your quote.

If you have questions, our licensed, U.S.-based insurance professionals are standing by.

Start a free quote with NEXT’s partners today.

Karen Solomon
About the author

Karen Solomon is a content marketing editor at NEXT. She has helped small business owners and startups as a writer, editor and content strategist for decades. When she's not slinging words, you can find her sailing, vintage shopping or doing things that dauschunds like to do.

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Issuance of coverage is subject to underwriting. Not available in all states. Please see the policy for full terms, conditions and exclusions. Coverage examples are for illustrative purposes only. Your policy documents govern, terms and exclusions apply. Coverage is dependent on actual facts and circumstances giving rise to a claim. Next Insurance, Inc. and/or its affiliates is an insurance agency licensed to sell certain insurance products and may receive compensation from insurance companies for such sales. Policy obligations are the sole responsibility of the issuing insurance company. Refer to Legal Notices section for additional information.

* To the extent permitted by law, applicants are individually underwritten, not all applicants may qualify. Individual rates and savings vary and are subject to change. Discounts and savings are available where state laws and regulations allow, and may vary by state. Certain discounts and policy start times apply to specific coverages only.

** Coverage examples are for illustrative purposes only. Your policy documents govern, terms and exclusions apply. Coverage is dependent on actual facts and circumstances giving rise to a claim.

Any starting prices or premiums represented before an actual customer quote are not guaranteed and are representations of existing premiums of active policies as of March 21, 2025. To the extent permitted by law, applicants are individually underwritten, not all applicants may qualify. Individual rates and savings vary and are subject to change. Discounts and savings are available where state laws and regulations allow, and may vary by state. Certain discounts apply to specific coverages only.