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Commercial auto insurance helps cover the costs of auto accidents that occur while you or your staff uses company-owned cars for business. This coverage can help pay for property damage and medical expenses for anything from a fender bender to a fatal accident. If your business depends on company vehicles, having commercial auto insurance is crucial.
An employee drives to work in a company vehicle, hits another car and totals it. Learn more about what commercial auto insurance is. Or get a commercial car insurance quote today to learn how you can protect your business while on the road.
What Does Commercial Auto Insurance Cover?
Although coverage availability and requirements vary by state, these are some of the common types of commercial auto coverages available to business owners:
- Bodily Injury Liability Coverage helps pay for the other driver’s medical expenses if you or one of your employees causes an accident.
- Property Damage Liability Coverage pays for damage that you or your employees cause to someone else’s property.
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Drive Other Car Coverage covers your business’ executive officers and their spouses if they drive vehicles that aren’t on your commercial auto insurance policy.
- Collision Coverage helps pay to fix or replace your business’ car if you hit something, like another car or pole.
- Comprehensive Coverage can help pay for car damages caused by theft, fire or natural disasters.
- Medical Payments Coverage can help pay for medical expenses for your employees and their passengers in the event of an accident, such as medical treatments and rehabilitations, dental care or funerals.
- Uninsured/Underinsured Motorist Coverage helps pay for you or your employees’ medical expenses or to fix your car if the other driver lacks enough liability coverage or is uninsured.
- Rental Car Coverage offers liability coverage while you or your employees are driving a rental vehicle for business. Many rental companies have loss damage waivers or collision damage waivers that you can sign to avoid paying for property damage to a rental car.
- Personal Injury Protection (PIP), also known as no-fault insurance, can help cover medical expenses, lost wages or funeral costs after an accident, no matter who is at fault.
- Hired and non-owned auto insurance offers lawsuit liability coverage if you or your employees are involved in an accident with a personal, rented or leased car that was used for business errands. However, this type of commercial vehicle insurance coverage will not pay for damages to the personal, rented or leased car.
What Is Not Covered?
The following situations won’t be covered under a commercial auto insurance policy:
- Medical expenses unrelated to an accident that happened while an employee is driving a company vehicle.
- Contents inside your business vehicle that were damaged in an accident.
- Accidents that occur when an employee is driving a personal vehicle for personal reasons. You can get coverage for this with hired and non-owned auto insurance coverage.
- Repairs to a rental vehicle you or your employees were driving while waiting for your company vehicle to be fixed after an accident. If your business needs this type of coverage, you can add hired and non-owned auto insurance to your policy.
What Types of Vehicles Are Covered?
- Cars
- Vans
- Pickup trucks
- Box trucks
- Service utility trucks
Do I Need Commercial Auto Insurance?
Most states require you to have commercial auto insurance if your business uses any company vehicles. You should check with your state laws to find out what coverage is required for your business. Consider commercial auto insurance if your business:
- Owns, leases or rents vehicles, such as cars and trucks**
- Has employees who drive their own vehicles for business
- Has employees who operate leased, rented or owned company vehicles
The 6 most common industries who need commercial auto insurance to protect their company vehicles are:
How Much Does Commercial Auto Insurance Cost?
The amount of premium you’ll pay for a commercial car insurance policy is heavily dependent on your industry and the types of vehicles your business operates. Typically, contractor-based businesses such as landscapers, electricians, carpenters and some construction jobs will have a higher monthly fee than other professions. Several factors can influence the cost of your auto insurance coverage, like the:- Type of business you have
- Type of vehicle your employee drives
- Driving record of your employees’
- Type of load the company vehicle is carrying
- Location of your company
- Amount of liability coverage you choose
Get a Quote for Commercial Auto Insurance Today
We make it easy for you to get a fast and free quote from The Hartford. With over 200 years of experience, we’re an insurance company you can count on. We have helped over 1 million small businesses get the coverage they need. Call us at 855-860-9763 for a free quote.
Choose The Hartford for Commercial Car Insurance
All business owners face unique risks. We can work to customize policies to help meet the specific needs of your business.
Our experienced claims specialists are ready to help expedite a claim to get you back on the road – and back to business.
Our commercial auto insurance offers extra protection for your business at no additional cost.
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Last Updated: June 26, 2023
** Gap coverage for lease and loaned vehicles not available in all states.
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