Commercial Auto Insurance

Yes — insurance for commercial vehicles is required in almost every state if you have vehicles you drive for business.

The most common state requirements for business vehicle insurance are commercial auto liability insurance for both injuries and property damage.

Some states also require uninsured/underinsured motorists coverage and medical payments coverage (also known as personal injury protection).

The type(s) of vehicles your business is using, how they’re being used and who is using them are a few factors that determine what kind of insurance your business needs.

Some clients might require you to have a certificate of insurance (proof of insurance, or a COI) before they’ll agree to work with you.

Even if you already have a personal auto insurance policy, it probably won’t cover accidents that happen while you’re driving for work.

In some instances, a small business might ask employees to drive their own car or a rented car for a job. Hired and non-owned auto insurance is an add-on to commercial car insurance that could help pay for damages.

Commercial vehicle insurance could help protect many of the vehicles that small businesses might use for work, including:

Cars and SUVs

Commercial car insurance could cover cars and SUVs used for business activities, such as traveling to job sites, visiting clients or making deliveries.

Vans

Commercial vehicle insurance could help protect vans used for business, including vehicles that transport supplies or equipment, make deliveries or travel between job sites. For example, contractors, cleaners, caterers and other mobile businesses may use vans as part of their everyday operations.

Trucks

Commercial truck insurance could cover many types of trucks used for business, from pickups to larger vehicles used to haul goods or equipment. Some trucks and trucking businesses have specialized risks and insurance requirements, so the commercial truck insurance coverage you need can depend on the type of truck and how you use it.

Trailers

Commercial trailer insurance can help protect eligible trailers used for business to haul equipment or materials. Which type of commercial trailer insurance coverage you need depends on how your business uses a trailer and who owns it.

If you or your employees drive for work, you may need business auto insurance.

Commercial vehicle insurance requirements vary by state and depend on the type of vehicle and how you use it.

More specifically, you may need commercial vehicle insurance if:

• Your business owns or leases a vehicle.
• Employees drive company vehicles.
• You make deliveries or transport products.
• You drive tools, equipment or supplies to job sites.
• You travel between work locations.
• You regularly drive to meet customers or clients.
• You transport people as part of your business.

Commercial auto insurance is designed for vehicles used for business, while personal auto insurance is primarily designed for personal driving.

A commercial auto policy could provide coverage for risks associated with business driving, including liability for accidents involving covered business vehicles. Commercial policies may also offer different coverage options and liability limits based on your business needs.

If you regularly use a vehicle for activities like making deliveries, traveling between job sites or visiting customers, you may need commercial car insurance.

Yes. If you use your personal vehicle for your day-to-day driving and for business purposes, it can often be insured with a commercial auto policy.

For example, if you own a van that you use for personal transportation as well as for your painting business, it could be covered under your commercial auto policy when it’s used for work.

Yes. If your work car, van, trailer or truck is covered by commercial auto insurance it could be protected for personal use as well as when you use it for work.

For example, if you use your registered business vehicle to get to job sites and you sometimes use it on the weekends to haul your fishing gear, commercial car insurance could also cover your fishing trips.

Check your commercial auto policy to understand when and how your vehicle is covered.

A commercial auto policy provides coverage for the vehicle used to transport items, but not the items themselves.

For example, if you’re a retailer who’s moving inventory from one store to another and your van is broken into, your stolen products won’t be covered by your commercial auto policy.

Or, if you have a pickup truck that you use to transport tools, the policy would cover the truck but not the tools.

If you work in construction or clean and you’re concerned about your gear going missing on a job site or in transport to work, consider tools and equipment insurance, also called inland marine insurance. If you travel with tools or work equipment in your vehicle to a client’s site, this coverage could help replace or repair damaged or stolen equipment.

Collision coverage may be available as part of a commercial auto policy. It could help pay to repair or replace a covered business vehicle after a collision with another vehicle or object.

Your commercial auto policy could cover eligible employees who drive covered business vehicles for work.

It's important to provide accurate information about the people who will drive your vehicles when you get a commercial auto insurance quote so you can get the right coverage for your business.

If employees use their own cars for work, your business may need hired and non-owned auto insurance.

If your employees occasionally use their personal cars for business driving, you may need hired and non-owned auto insurance.

For example, an employee might use their own car to make a delivery, pick up supplies or visit a customer. Hired and non-owned auto insurance could help protect your business against certain liability costs if your employee is in an accident while driving for work.

Commercial auto insurance could cover eligible vehicles your business leases or finances for work.

If you lease or finance a business vehicle, your lender or leasing company may require specific coverage in addition to liability insurance, such as collision and comprehensive coverage.

Yes, multiple eligible business vehicles can be insured under a commercial auto policy, but note that the number and types of vehicles you insure will affect your commercial auto insurance cost.

If your business owns several cars, vans or trucks, putting them on one business auto insurance policy may make it easier to manage your coverage.

Whether or not you need commercial auto coverage depends on what you do, how often you drive for work and what your existing auto insurance covers.

For example, you’ll have different insurance needs if you just occasionally drive to meet a client versus driving regularly to make deliveries or transport equipment between job sites.

If you use a personal vehicle for business, check whether your personal policy covers that use. You may need commercial car insurance, car insurance for business use or another type of business auto coverage.

If your business is required to carry auto insurance and doesn't, you could face penalties and significant financial risk.

If you cause an accident while driving for work and don't have insurance, your business could be responsible for the full cost of expenses related to property damage, injuries and legal costs.

Commercial auto insurance for small businesses could help protect you from covered accident-related expenses that you might otherwise have to pay out of pocket.

Commercial car insurance doesn't cover every expense involving your business or vehicle.

For example, a commercial auto policy generally doesn't cover tools, equipment or other business property you're transporting inside your vehicle. Depending on your policy and coverage selections, other exclusions may apply.

You may need other types of business insurance to protect against risks that aren't covered by business auto insurance.

Commercial auto insurance is almost always more expensive than personal car insurance.

A personal auto policy typically offers protection against collisions, personal injuries and medical payments. It doesn’t usually cover the riskier situations covered by commercial auto insurance, such as property damage and injuries to employees.

Commercial auto typically has higher liability limits, which usually end up costing more than what you would pay for your personal vehicle.

Yes, you can buy a commercial auto policy by itself from our trusted partners at GEICO.

However, we recommend considering other small business insurance coverage for greater protection against a broad set of risks. For example, buying general liability insurance with your commercial auto coverage could help protect your business from more liability costs around medical expenses, damage to other people’s property, legal costs and more.

No, but we partner with other trusted insurance carriers to provide this coverage.