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What is commercial Auto Insurance



Commercial Auto insurance provides liability and physical damage coverage for vehicles used for business purposes, such as cars, trucks, and vans. This type of insurance is necessary because commercial vehicles are typically exposed to greater risks compared to personal vehicles.



Commercial Auto Coverage



Liability Coverage:

• Bodily Injury Liability - Covers injuries to other people if you are legally liable in an accident.

• Property Damage Liability - Covers damage to someone else's vehicle or property if you are legally liable.


Physical Damage Coverage:

• Collision - Covers damage to your own commercial vehicle if it collides with another vehicle or object.

• Comprehensive - Covers damage to your commercial vehicle from events like theft, vandalism, or natural disasters.


Additional Coverages:

• Medical Payments/Personal Injury Protection (PIP) - Covers medical expenses for you and your passengers, regardless of fault.

• Uninsured/Underinsured Motorist - Protects you if an uninsured or underinsured driver causes an accident.

• Hired and Non-Owned Auto Liability - Provides coverage for vehicles you rent or borrow for business use.



Who Needs Commercial AUto Insurance



Certain types of businesses often require commercial vehicle insurance to properly protect their operations:

Contractors, Tradespeople, and Construction Companies: Businesses like contractors, landscapers, and construction companies that use trucks, vans, or other vehicles to transport tools and equipment to job sites typically need commercial auto insurance. This coverage helps safeguard their vehicles, tools, and liability in the event of an accident.

Delivery Companies

Businesses that utilize cars, trucks, or vans to deliver goods and products to customers should have a commercial auto insurance policy. This ensures protection for the drivers, vehicles, and cargo during the delivery process.

Transportation Services:

Companies that provide passenger transportation services, such as taxis, limousines, and other livery operations, require commercial auto insurance to cover their commercial cars and protect both drivers and passengers.

Food Services:

Restaurants, food trucks, and catering companies that use vehicles for food delivery or to operate mobile kitchens usually need a specialized commercial auto policy to cover their unique vehicle-related risks.



What is Average Cost



The national median monthly cost for commercial auto insurance through Progressive ranged from:

$179 for contractors

$180 for general business auto customers


The average monthly cost was approximately $220.


Most customers find their monthly commercial auto insurance premium to be closer to the median price range, rather than the higher average cost.

The variation in pricing reflects the different risk profiles and coverage needs of different types of commercial vehicles and businesses. Factors like the industry, vehicle usage, driving records, and coverage limits can all impact the final commercial auto insurance rates.


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