Commercial auto insurance

Commercial auto insurance is a type of business insurance that covers vehicles used for business purposes, such as delivery vans and construction trucks. Commercial auto policies protect companies against liability and property damage resulting from vehicle accidents involving employees or owned vehicles.

The cost of commercial auto insurance in the US averaged $1,704 per year per vehicle in 2023, according to Insureon. Policies typically cover bodily injury liability, property damage liability, collision, comprehensive, medical payments, and uninsured motorist coverage.

Insurance providers require businesses to list all drivers who operate company vehicles, including salespeople and field technicians. Businesses must purchase commercial auto insurance if they own, lease, or rent vehicles with a company name or used to transport goods for clients.

Most personal auto policies exclude business use and deny claims for incidents occurring during work-related driving. Companies transporting hazardous materials like fuel must buy additional endorsements required by federal law (e.g.

MCS-90). Underwriting factors include the type of vehicles insured (such as semi-trucks or food trucks), annual mileage driven for work, and driver records.

Claims can be denied if vehicles are used outside the declared scope of business activities, such as ridesharing without a proper endorsement. Many states mandate minimum liability limits for commercial vehicles–California requires at least $750,000 combined single limit for large trucks transporting non-hazardous freight.

Commercial auto insurance differs from hired and non-owned auto coverage; the latter protects businesses when employees drive personal or rented cars for work errands like picking up supplies or client visits, as explained by YourInsurance.info.