Commercial auto insurance in Virginia

Any Virginia 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 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 landscaping pickup, a food truck, or a fleet of company cars.

Your business could be in legal and financial jeopardy without commercial auto insurance coverage.

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.

You could also face severe penalties for not carrying insurance. In this event, your driving and vehicle registration privileges could be suspended. They can only be reinstated upon the payment of a statutory fee of $600, furnishing and maintaining proof of financial responsibility for three years, and potentially paying a reinstatement fee.

As of July 2024, all vehicles in Virginia must be insured. Virginia's minimum auto liability insurance requirements are:

• $30,000 bodily injury liability per person
• $60,000 bodily injury liability per accident
• $20,000 property damage liability per accident

Starting in January 2025, these limits will increase to:

• $50,000 bodily injury liability per person
• $100,000 bodily injury liability per accident
• $25,000 property damage liability per accident

Vehicles owned by a business should be covered by commercial auto insurance, and personal vehicles driven for work should be covered by hired and non-owned auto insurance. An insurance agent might recommend higher coverage limits based on the types of vehicles you own and how they’re used.

Semi-trucks, tractor-trailers, and other vehicles with a Virginia 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. 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. However, this type of insurance will not cover damage to the vehicle used by your business.

Insureon makes it easy for business owners to get affordable Virginia commercial auto insurance. Complete one easy application to review quotes specific to your business and industry from leading U.S. insurers. Start an application for commercial auto insurance quotes today.