What does commercial auto insurance cover?
This article was originally published June 22, 2021
The vehicles you own or lease and use for conducting business are insured separately from your personal vehicles. Company cars and trucks should be protected under a commercial auto insurance policy. This type of insurance has different coverages designed to address specific business needs.
Here are the details. A commercial auto insurance policy covers:
- Bodily injury
- Property damage
- Medical payments, no-fault, or personal injury
- Uninsured and under-insured motorist
- Comprehensive physical damage
- Collision
A commercial auto insurance policy is similar to personal auto insurance in many ways, but a commercial auto policy may have very different eligibility criteria, definitions, coverages, exclusions, and liability limits.
Vehicles covered by commercial auto insurance can include:
- Cars
- Pickup trucks
- SUVs
- Vans
- Box trucks
- Truck tractors
- Food trucks
- Trailers
- Service utility trucks
- Dump trucks
What does coverage cost? Get a Commercial Auto insurance quote online.
Many factors are assessed when determining the cost of your commercial auto insurance. They include things like the types of vehicles, what the vehicles are used for (transporting goods, transporting people, etc.), how much you drive, where you drive, where you store the vehicles, information about the people who will be driving them (including their driving records), and your claims history. The coverage limits and deductibles you choose are also a factor.
What will you pay? The best way to estimate your cost is to get a commercial auto insurance quote online.
What kinds of businesses need Commercial Auto coverage?
Is your business required to have commercial auto insurance? Virtually any type of company that uses vehicles to conduct business needs commercial auto coverage. If your company owns a vehicle and uses it for business purposes, coverage is mandatory for at least the limits required in your state. Commercial auto coverage is often purchased by:
Who Offers the Best Commercial Auto Insurance?
When you’re searching for the best commercial auto insurance provider, there are a couple of important characteristics. The first is the company’s insurance rating. For example, biBERK is part of the Berkshire Hathaway Insurance Group, with all of our major insurance subsidiaries being rated A++ by A.M. Best Company and AA+ by Standard & Poor’s Corporation. That means they display superior financial health and operating performance. Berkshire Hathaway Insurance Group has millions of satisfied customers, more than 75 years of insurance experience, and $52.2 billion in paid claims in 2023.
Another important consideration when looking for the best commercial auto insurance company is, of course, cost. At biBERK, we insure you directly with no middleman or insurance broker. This is a more cost-effective approach, and it means you can save up to 20% on your coverage as compared to policies from other companies.
Does biBerk sell Commercial Auto insurance in my state?
biBERK provides commercial auto insurance in most U.S. states. Check out our coverage map to see if we offer policies in your state.
Who relies on biBerk for auto insurance coverage?
We work with all types of people tasked with protecting their company’s vehicles and the company itself from liability lawsuits.
Small business owners
People who own a business appreciate that we can provide affordable commercial auto insurance. They understand that all it takes is an instant of distraction for someone driving a company vehicle to cause an accident. If that occurs and the other party sues the business, it’s crucial to have commercial auto insurance. And, of course, business owners want to be able to get coverage without headaches or delays, so they appreciate that we make it easy to interact with us online.
Company vehicle managers
Some small businesses have multiple vehicles and one person tasked with overseeing them. It may not be the kind of “fleet” that a larger company has, but protecting the vehicles and the company is just as important. These managers rely on us, in part, because we provide prompt, attentive service when they have questions or need to report a claim—whether from an accident, vandalism, or some other covered event.
New entrepreneurs in transportation
Businesses in the transportation sector like that we can help them understand their legal obligations regarding insurance. Using the clear, actionable advice we provide, they can avoid common insurance-related mistakes and take steps to protect their vehicle investments and their businesses. What’s more, because they typically need to insure multiple vehicles, the savings they get from biBerk’s direct-to-you approach to selling insurance are vital to their bottom lines.
Frequently asked questions about Commercial Auto insurance
What is commercial auto insurance?
Commercial auto insurance protects the cars, vans, or trucks you use to conduct business. It covers collisions, property damage, personal injuries, and more.
How much does commercial auto insurance cost on average?
There are many factors that go into determining your commercial auto insurance cost. They include things like the types of vehicles your business uses, where and how much they’re driven, where they’re parked when not in use, the driving records of the people who will operate them, etc. If you purchase insurance from biBERK, our direct-to-you approach means you can save up to 20% over other insurance providers. For example, commuter/consultant use of smaller vehicles can cost $600 to $1,500 per vehicle per year. The cost to insure vehicles for for-hire trucking can be $5,000 to $15,000 per vehicle per year. Livery vehicles may cost $2,000 to $6,000 per vehicle per year to insure.
Will my rate go up if I’m involved in an accident in my covered vehicle?
There won’t be an immediate increase. However, your policy is rewritten each time it’s renewed, and your driving record (including whether you were at fault in any accidents you were involved in) is a factor in the new rate. Consequently, staying accident-free (ideally for three years or more) is to your benefit.
What drivers are covered by my small business auto insurance if they cause an accident while driving my vehicles?
Your policy can cover damage caused by your employees, family members, and others who operate your vehicles with your permitted use. (If someone steals your vehicle, damage they cause is not covered.) Everyone who drives your vehicles regularly should be noted on your commercial auto policy.
Does my commercial auto insurance coverage include things like tools that are stolen from my vehicle?
Only items permanently attached to your vehicle are covered. So, for example, a built-in tool box would likely be covered, but the tools within it would be excluded. Those items can be covered by other small business insurance, however.
Small business auto insurance is reassuring when you’re on the road for work.
There are many types of risk associated with operating a small company. At your place of business, you’re able to minimize the risks to a certain extent. When you’re operating a vehicle for work, using safe driving practices is helpful, but there are still many variables outside your control—the behavior of other drivers, road hazards, and weather conditions, to name just a few.
Having adequate commercial auto insurance coverage can be reassuring to you and your employees, and can provide your business with important financial protection.