Commercial auto insurance is crucial for any business that uses vehicles in its operations. These policies provide financial protection for business-owned cars, trucks, vans, and fleets, covering liability and losses from accidents or theft. Unlike personal auto insurance, commercial auto insurance is tailored to company vehicles.
It often offers higher coverage limits and extra protections, for example, covering rental cars, trucks, and vans driven by employees. In other words, when your business vehicles hit the road, a strong commercial auto policy (also known as company car insurance) ensures that accidents and injuries are financially covered.
Businesses face high costs from auto collisions. The Network of Employers for Traffic Safety estimates vehicle crashes cost American employers over $72 billion per year in damages and liability.
This makes quality coverage (including commercial liability insurance for vehicles) essential. In recent years, insurers have faced rising claims in this line, leading to rate hikes (around 9–10% increases in 2024). With premiums climbing, companies need policies that balance affordability with comprehensive protection. Belo, we explain key coverage types and then list the 10 best commercial auto insurance policies to consider for 2025.
Key Coverages in a Commercial Auto Policy?
Commercial auto policies can be customized for different business needs. Common coverages include:
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Liability Coverage: Covers bodily injury and property damage if your business vehicle causes an accident. (This is effectively auto commercial liability insurance – it protects your company and drivers from lawsuits and damages.)
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Collision & Comprehensive: Repairs or replaces your vehicles after accidents or non-collision damage (fire, theft, vandalism, weather).
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Medical Payments/PIP: Pays medical expenses for drivers and passengers in your vehicle after a crash.
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Uninsured/Underinsured Motorist: Protects your business if an at-fault driver has no or insufficient insurance.
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Hired and Non-Owned Auto: Provides liability coverage when an employee drives a rented or personal vehicle on company business – essential employee driver coverage if staff use cars or vans on the job.
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Rental Reimbursement & Roadside Assistance: Optional add-ons that reimburse rental car costs or provide towing and help after a breakdown.
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Fleet Insurance: If you have multiple vehicles, policies often allow fleet coverage – consolidating all business cars and trucks under one policy, sometimes at a discount. Fleet plans can include telematics programs and safety training incentives.
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Specialized Coverages: Depending on the industry, you can add protection for cargo (important for delivery van insurance), tools and equipment in vehicles, or gap coverage for leased vehicles.
Commercial auto insurance policy document with a magnifying glass, model car, and money illustrating how these policies protect business vehicles and drivers.
Each of the top policies below offers these core coverages, often with customizable limits and discounts. When comparing providers, look for options like new car replacement, deductible reduction, or safe driver discounts. According to the National Association of Insurance Commissioners, robust policies reflect accurate driver history and credit, and may offer discounts for things like secure parking or multiple vehicles.
How Commercial Auto Insurance Differs from Personal Auto
It’s important to note that personal auto insurance typically excludes business use. If employees drive a company car, personal policies usually won’t cover work-related accidents. Commercial auto insurance is specifically designed for business use. For example:
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Higher Limits: Businesses often need higher liability limits (to cover customer injuries or large property damage claims). Commercial policies are rated differently and can cover larger losses.
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Employee Coverage: A key difference is employee driver coverage. Commercial policies explicitly insure vehicles driven by employees or contractors on company time, whereas personal policies do not.t
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Types of Vehicles: Commercial policies cover a wider range of vehicle types (from vans and box trucks to specialized delivery vehicles or food trucks). Even standard company cars used in a business context require commercial coverage.
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Business Use: If your vehicle’s primary purpose is business (deliveries, client visits, hauling tools or goods), you need commercial auto insurance.
In short, any vehicle registered to a business or used regularly by employees for work should have a commercial auto policy. An agent can help determine if your situation requires commercial coverage by reviewing vehicle use and
10 Best Commercial Auto Insurance Policies
Below are the 10 top-rated commercial auto insurance policies/providers for businesses (in no particular order). Each has strong coverage options, financial stability, and good customer service. We include their key features:
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Progressive Commercial Auto Insurance: Progressive is a leader in business auto coverage. It insures all types of commercial vehicles – from company cars to heavy trucks – and offers specialized fleet insurance programs. Progressive’s policies include standard liability, collision, and comprehensive coverage, plus optional uninsured motorist, medical payments, and personal injury protection.
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The company also offers unique features like the Deductible Savings Bank (a rollover for unused deductible). Progressive’s strong financial performance (11.9% market share and growing premiums) reflects its stability. They provide discounts for multi-vehicle accounts and safe driving, making it easier for businesses to insure multiple company cars under one policy.
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Nationwide Commercial Auto Insurance: Nationwide is known for customizable coverages and high AM Best ratings. It offers full coverage liability, collision, comprehensive, along with work truck endorsements and emergency roadside assistance. Nationwide is frequently cited as a top provider for commercial fleets due to its range of add-ons (new vehicle replacement, rental reimbursement, towing coverage) and its nationwide network. According to Insurify, Nationwide is among the best for customized coverage and has a high quality score. It’s a strong choice for small and large businesses alike, providing tools to manage multiple company vehicles and safe-driving programs.
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The Hartford – Company Car Insurance: The Hartford specializes in small-business insurance, including commercial auto. Its business auto policies include broad liability protection, physical damage (collision/comprehensive), and can be bundled with business owner or package policies. The Hartford is highly rated by AM Best (A+). Unique features include Accident Forgiveness for first claims and Safe Driver discounts. The Hartford also offers a training program for drivers. This insurer is a solid pick for service industries and contractors, given its focus on contractor-specific auto coverage and strong claims service.
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Liberty Mutual Commercial Auto: Liberty Mutual provides wide-ranging coverage for business vehicles worldwide. Its commercial auto includes the core liability, collision, comprehensive coverages, plus medical payments and personal injury protection. Liberty Mutual stands out with features like New Car Replacement (if your new vehicle is totaled) and Gap insurance (covering the loan balance). It also offers Global Fleet coverage for companies operating in multiple states or countries. In 2024, Liberty Mutual improved its underwriting discipline, reinforcing its strength as a commercial insurer.
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State Farm Commercial Auto: State Farm’s business auto policies cover liability, collision, and comprehensive damages. It offers optional add-ons like medical payments, uninsured motorist, emergency road service, and rental reimbursement. State Farm is known for responsive local agents and customizable policies for small businesses. Notably, they offer coverage for leased and hired vehicles, and even rideshare business use. In 2024, State Farm saw significant growth across its auto lines, indicating solid support for its commercial offerings. Their accident-free discount and Drive Safe & Save program can lower premiums for safe business drivers.
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Allstate Business Auto Insurance: Allstate (not listed above but a major insurer) offers business vehicle coverage through its Business Insurance package. Allstate’s business auto covers liability and physical damage for cars, trucks, and vans. It provides add-ons like electronics protection (for GPS or computers), rental reimbursement, and emergency roadside assistance. Allstate is praised for its Claims Satisfaction and offers SmartRide® discounts based on actual driving habits. It’s especially competitive for small fleets or delivery businesses thanks to flexible payment options and multiple policy discounts.
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Acuity Commercial Auto Insurance: Acuity is a regional carrier (Midwest-based) with an excellent A+ AM Best ratingIts business auto policies include comprehensive coverage and unique perks. In addition to standard liability, collision, and comprehensive, Acuity offers Rental Car Reimbursement, Emergency Roadside, and New Vehicle Replacement. They provide personal customer service via local agents and often tailor policies for niche industries like construction or farming. Acuity’s 2024 results showed record growth in surplus, underscoring its stability. For businesses in Acuity’s service area, this carrier is well-regarded for claims service and personalized attention.
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Travelers Commercial Auto Insurance: Travelers offers robust commercial auto coverage with a focus on fleets and high-risk vehicles. Its standard coverage includes liability, collision, and comprehensive. Travelers is noted for competitive underwriting and specialized add-ons (for example, commercial umbrella policies to raise liability limits). The company also provides a broad network of rental reimbursements and towing services. In 2024, Travelers achieved record underwriting income and strong rates. This financial strength, along with Traveler’s Safety Management Services (risk control for fleets), makes it one of the top business auto insurers in the U.S. today.
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GEICO Commercial Auto (Berkshire Hathaway): GEICO, a subsidiary of Berkshire Hathaway, offers commercial auto insurance nationally through GEICO Commercial Truck and other channels. (Berkshire brands Guard and Homestate also write business auto under Berkshire Hathaway.) These policies include the usual liability, collision, and comprehensive coverages. GEICO/Guard specializes in businesses with smaller fleets and offers low rates for good drivers. As part of Berkshire Hathaway, its capital strength is extremely high (Buffett’s conglomerate held ~$334B in cash in 2024). GEICO’s claims process is streamlined, and many businesses benefit from its multi-vehicle discounts and online quoting. Insurify cites GEICO among the top three commercial auto insurers for its quality and add-on options.
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Nationwide (again) and Other Niche Insurers: (While we’ve already covered Nationwide above, other top-ranked insurers include Liberty Mutual, Progressive, GEICO, Travelers, and Acuity, as mentioned. In addition, specialty companies like Chubb (for high-value fleets) and AmTrust (for trucking businesses) are worth considering.) As an example, Insureon lists Chubb and others as excellent carriers for delivery and construction fleets. When selecting a policy, match the insurer to your industry: e.g., Acuity and Nationwide for contractors, Liberty and Travelers for general fleets, and The Hartford for small businesses. Use AM Best ratings (A or A+) as a guide (all the companies above meet that standard.ard
Each of the above providers offers strong commercial auto insurance policies tailored to businesses. When choosing among them, consider factors like vehicle types (sedans vs. big rigs), number of drivers, and state requirements. Also, compare discounts (multi-vehicle, safety features) and customer service ratings.
Getting quotes from multiple insurers is key; Insurify and Insureon both emphasize shopping around among these top carriers. Remember that policy features (like employee driver coverage, commercial liability limits, and cargo protection for delivery vans) can vary, so align a policy with your specific needs.
FAQs
Q: What vehicles require commercial auto insurance?
A: Any vehicle owned by a business or used for business purposes generally needs commercial auto insurance.
This includes cars, trucks, vans, or fleets if they transport goods, carry equipment, deliver products, or are regularly driven by employees. Even a personal vehicle used extensively for work may require commercial coverage.
Q: How is commercial auto insurance priced?
A: Premiums depend on factors like the number and type of vehicles, driver records, coverages, and deductibles.
According to Insureon, small businesses average about $147 per vehicle per month, but actual costs vary. Key rating factors include vehicle value, miles driven, driver history, and liability limits. (See NAIC guidelines for more details
Q: Does commercial auto insurance cover employees driving their own cars for work?
A: Typically, no. Commercial auto covers vehicles listed on the policy (owned, hired, or leased by the business).
If an employee uses their personal car for work, that’s called non-owned auto coverage or an HNOA endorsement, which some commercial policies offer. Employers can also require employees to carry adequate personal coverage and add the company as an additional interest.
Q: How can a business lower its commercial auto insurance costs?
A: Safety programs and driver training can reduce claims. Insurers often give discounts for multiple vehicles, bundling with other business policies, and having anti-theft devices. Maintaining good driver records is crucial.
Some policies offer usage-based pricing or telematics discounts for safe driving. Also, insuring on a fleet or group policy (fleet insurance) usually costs less per vehicle than separate policies.
Q: Why is fleet insurance beneficial for businesses?
A: Fleet insurance is designed for companies with 5 or more vehicles. It streamlines billing and claims, often reducing administrative costs. A fleet plan may include tools like centralized claims handling and special safety programs.
Many of the insurers above (Progressive, Nationwide, Travelers, etc.) provide dedicated fleet products to manage company vehicle coverage in bulk.
Each FAQ above addresses common concerns. For more personalized advice, consult an insurance agent who can recommend one of these top carriers based on your business type and location.
