Commercial auto insurance in Minnesota

Any Minnesota company that uses vehicles for business purposes must have commercial vehicle insurance, whether it’s the owner’s personal vehicle or a fleet of vehicles owned by the business.

Your personal auto insurance policy covers you while driving to and from work, but not while making deliveries, picking up supplies, and other work-specific uses. A business auto policy would cover you and your personal vehicle in case you’re at fault for an accident during a work-related errand.

Any vehicles you own solely for work purposes must be covered by a commercial auto policy, whether you own a single pickup truck, a food truck, or a fleet of semi-trucks and tractor trailers.

Your business could be in legal and financial jeopardy without commercial auto insurance coverage. In Minnesota, any business that has its own vehicles must at least carry auto liability insurance.

If one of your business vehicles is at fault in an accident, you could face an expensive lawsuit or settlement. You’d likely have to pay for damage to the other vehicle or property, medical costs, lost wages, pain and suffering, plus other related costs.

Additionally, you could face severe penalties for not carrying auto insurance. Driving without insurance in Minnesota could result in a fine between $200 to $1,000, as well as a suspension of license and registration for up to 30 days, and potentially community service.

All vehicles in Minnesota are required by law to have a minimum amount of auto liability insurance coverage [PDF], whether they’re for personal or business use. These liability limits are:

• $30,000 bodily injury liability per person
• $60,000 bodily injury liability per accident
• $10,000 property damage liability
• $25,000 uninsured/underinsured motorist coverage per person
• $50,000 uninsured/underinsured motorist coverage per accident
• $40,000 personal injury protection

Your insurance agency might recommend higher liability coverage limits based on the types of vehicles you own and how they’re used.

In addition, personal injury protection (PIP) insurance is required in Minnesota. This add-on coverage helps provide medical payments coverage after a car accident, regardless of who was at fault, and is mandated as part of the state's minimum vehicle insurance requirements.

Semi-trucks, tractor-trailers, and other vehicles with a Minnesota Department of Transportation serial number will have additional liability coverage requirements, depending on the type of vehicle and how it’s used.

You can see if your business needs these additional requirements by checking your USDOT number or docket number with the Federal Motor Carrier Safety Administration.

If you’re using your own vehicle for work-specific activities, your personal auto policy wouldn’t cover you in the case of an accident. That’s why many small business owners purchase hired and non-owned auto insurance (HNOA). This liability policy covers accidents in personal, leased, and rented vehicles used for work purposes.

If you or an employee gets into an accident while driving a personal car for a work errand, your HNOA coverage would help pay for any claims or lawsuits against your business. It’s worth noting that this would not cover damage to the vehicle used by your business.

Insureon makes it easy for business owners to get affordable Minnesota commercial auto insurance. Complete one easy application to review quotes specific to your business and industry from leading U.S. insurers. Our licensed insurance agents will answer any questions and make sure you get the right coverage for your business.