Commercial auto insurance in Pennsylvania

Any Pennsylvania company that uses vehicles for business purposes must insure them appropriately.

Commercial auto insurance covers vehicles owned by your business, while hired and non-owned auto insurance (HNOA) covers personal, rented, and leased vehicles used by your 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 if 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 landscaping pickup, a food truck, or a fleet of vehicles.

Without commercial auto insurance coverage, your business could be in legal and financial jeopardy. In Pennsylvania, all vehicles are required to 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 expenses.

Additionally, you could face severe penalties for not carrying auto insurance. Driving without insurance could result in a fine of at least $300 in Pennsylvania and a suspended license and registration for 90 days. The state may also impound your vehicle.

All vehicles in the state of Pennsylvania, from Pittsburgh to Philadelphia, are required to have a minimum amount of auto liability insurance coverage [PDF], whether they’re for personal or business use.

Pennsylvania's insurance requirements are:

• Bodily injury liability: $15,000 per person / $30,000 per accident
• Property damage liability: $5,000 per accident
• Personal injury protection (PIP): $5,000

Note that personal injury protection (PIP) insurance is required in Pennsylvania. 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.

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 Pennsylvania. 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 motor vehicle insurance requirements.

Semi-trucks, utility and cargo trailers, and other vehicles with a Pennsylvania 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 to meet these additional requirements by checking your USDOT number or docket number with the Federal Motor Carrier Safety Administration (FMCSA).

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 involving 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 type of insurance would not cover damage to the vehicle used by your business.

Insureon makes it easy for Pennsylvania business owners to get affordable commercial auto insurance. Complete Insureon’s easy online application today to compare insurance rates from top-rated U.S. carriers and car insurance companies. You can also consult with an insurance agent on your business insurance needs.

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