Commercial auto insurance cost

Small businesses pay an average premium of $147 per month, or $1,762 annually, for commercial auto insurance, also known as commercial car insurance.

Our figures are sourced from the median cost of policies purchased by Insureon customers from leading insurance providers. The median offers a better estimate of what your business is likely to pay because it excludes outlier high and low premiums.

Among Insureon's small business customers, 37% pay less than $100 per month for commercial auto insurance and 26% pay between $100 and $200 per month.

The cost varies for small businesses depending on how many work vehicles they own and the type of insurance coverage they choose.

Like your personal auto insurance policy, your business insurance company calculates your commercial vehicle insurance premiums based on a number of factors, including:

• Your coverage limits and deductible
• The type of coverage you choose
• Your industry risks
• The number of vehicles you own
• The type of vehicles, such as cars, buses, box trucks, or limos
• How often your business vehicles are driven
• You and your employees’ driving records
• Claims history

Chat with a licensed insurance agent if you're unsure which coverage options to choose, and get free commercial auto insurance quotes.

If you want car insurance that pays for a wide range of damage, you need to choose higher per-occurrence limits and aggregate limits on your policy. Higher coverage limits cost more than basic coverage.

When choosing limits, make sure you're meeting your state's requirements for auto insurance. Most states require commercial auto insurance for businesses that own vehicles. You’ll likely need a certain amount of property damage liability and personal injury protection. These cover the damage your vehicles may cause to other vehicles, property, and individuals.

When buying a policy, you can choose a higher deductible to save money on your premium. However, make sure the deductible is something you can easily afford. If you can't pay the deductible, your insurance won’t activate to cover your claim.

The right amount of coverage depends on your business needs. You want liability limits that'll cover a potential auto accident, without buying more than you need. Chat with a licensed insurance agent if you're unsure which limits are right for your business. They can also help you find ways to get affordable commercial auto insurance.

The type of auto coverage you buy has a big impact on your commercial auto insurance costs. You can choose auto liability only, or comprehensive coverage and other types of physical damage coverage.

Auto liability coverage is required by law in most states and protects you if you or your employees are to blame for an accident in your commercial vehicle. Auto liability is your lowest cost option, and provides limited coverage to help pay for:

• Physical damage to other vehicles or property
• Medical expenses from bodily injuries to another party

If you opt for comprehensive auto insurance, your coverage will increase – but so will your insurance rates. In addition to what’s covered under auto liability coverage, comprehensive commercial auto insurance covers theft and damage due to weather, vandalism, or fire.

Additional endorsements like uninsured motorist coverage, medical payments coverage, or collision coverage can further increase your premium. For an accurate auto insurance quote, make sure to provide details about your insurance needs.

You can also opt for hired and non-owned auto insurance (HNOA) if you drive a leased, rented, or personal vehicle for business purposes. Because it doesn't cover damage to your own vehicle, you can expect to pay a little less for HNOA coverage.

HNOA is important because although your personal auto insurance will cover your work commute, it likely has exclusions for work-related mishaps such as errands you make as part of your job.

Your type of business also affects how much you will pay for a commercial auto insurance policy, along with your vehicle use. For example, a food truck filled with valuable equipment or a tow truck that’s always on the road will likely have higher rates. So might construction vehicles, like dump trucks, that frequent dangerous job sites.

However, keep in mind that the number of vehicles and their value has a bigger effect on your premium than your industry.

Insureon is the #1 independent agency for online delivery of small business insurance. By completing Insureon’s easy online application today, you can get free quotes for commercial auto insurance and other policies from top-rated U.S. insurance carriers.

Once you find the right policies for your small business, you can begin coverage in less than 24 hours and get a certificate of insurance for your small business.

Insurance premiums vary based on the policies a business buys. See our small business insurance cost overview or explore costs for a specific commercial policy.