Best Commercial Auto Insurance Companies Of April 2024

Commercial car insurance is a form of small business insurance for work vehicles. If you drive a car, truck or van for business purposes, you’ll need a commercial auto policy. Your personal car insurance likely won’t cover the vehicle if you (or an employee) get into an accident while driving for business.

Commercial auto insurance can cover everything from company cars to food trucks to delivery vans.

Here’s a look at the types of coverage available with commercial auto insurance:

• Property damage liability pays for damages to another person’s property, such as their car, when you are at fault in an accident.
• Bodily injury liability pays for the injuries you cause another person when you’re responsible for an accident.
• Combined single limit (CSL) offers one limit for property damage claims and bodily injury claims.
• Collision insurance pays for damage to your business vehicle when it hits another car or an object, such as a pole.
• Comprehensive insurance pays for damage caused by weather, fire, falling objects (such as tree branches) and other problems. It also covers vehicle theft.
• Medical payments and personal injury protection (PIP) pay for the cost of medical care for you and your passengers, no matter who was at fault.
• Uninsured motorist coverage pays for your and your passengers’ injuries if your vehicle is struck by an uninsured driver.

If you are driving a vehicle for business purposes, you will need commercial auto insurance. Your personal car insurance policy won’t pay a claim if you get into an accident while driving your car for work.

Here are some examples when you need a commercial auto insurance policy:

• The vehicle is solely used for work (for example, a company car).
• You transport goods or people in your vehicle.
• You transport tools or equipment in your vehicle.
• Your employees drive your business vehicle.
• The vehicle is owned by the company.
• You conduct a business service with your vehicle.

Related: How commercial auto insurance works

The average cost of commercial auto insurance is $147 per month, according to Insureon. More than a third (37%) of Insureon customers pay less than $100 per month, about a quarter (26%) pay between $100 and $200 per month and 37% pay more than $200 per month for commercial auto insurance.

Factors in Business Auto Insurance Cost

Here’s a look at the pricing factors for commercial auto insurance.

• Company business. The type of business you run impacts the commercial auto insurance rates that you’ll pay. If you mainly work at your office, you’ll pay less than someone who carries tools and equipment in a work van and makes customer calls all day.
• Vehicle. The type and size of the company vehicle affects the insurance rate.
• Driving history. Drivers with good driving records are rewarded with better rates.
• Location. If you work in a bigger city, expect to pay more for your commercial auto insurance than a business that operates in a small town. Drivers in areas with low accident frequency and few car thefts pay less.
• Mileage. How much you typically drive a commercial vehicle impacts rates.
• Coverage choices. Your coverage choices and insurance limits impact your rate.

If you have a business vehicle that you rent or a personal car that you sometimes use for business-related work, the vehicle won’t be covered by a commercial auto policy. But you can find coverage with “hired and non-owned auto insurance.”

Let’s say you’re driving your personal car to a business meeting and get into a car wreck. You’re at fault in the accident, and the other driver decides to sue your business. Hired and non-owned auto insurance would help cover these legal fees.

If you’re a driver for Uber, Lyft or another rideshare service, you may wish to get additional insurance protection with rideshare insurance. Relying on a personal auto policy and the rideshare company’s insurance can leave a coverage gap.

For example, there is a gap in insurance coverage when a driver has the rideshare company’s app on but is still waiting for a passenger request. The driver won’t be covered by comprehensive and collision insurance from either their personal auto policy or the insurance offered by the rideshare company’s coverage. Getting rideshare insurance fills this gap in coverage.

Below is a ranking of the largest sellers of commercial auto insurance.

Rank	Company	Market share
1	Progressive	15.56%
2	Travelers	5.25%
3	Liberty Mutual	3.87%
4	Old Republic Insurance	3.78%
5	Zurich	2.96%
6	Berkshire Hathaway	2.86%
7	Nationwide	2.76%
8	Auto-Owners Insurance	2.65%
9	Allstate	2.17%
10	Chubb	2.16%
11	W. R. Berkley Corporation	2.09%
12	State Farm	2.03%
13	Farmers Insurance	1.95%
14	The Hartford	1.78%
15	Great American Insurance	1.69%
16	AIG	1.59%
17	Fairfax Financial	1.55%
18	Tokio Marine	1.49%
19	Selective	1.49%
20	Sentry	1.48%
21	The Cincinnati Insurance	1.43%
22	Erie Insurance	1.32%
23	Acuity A Mutual Insurance	1.24%
24	CNA	1.11%
25	Federated Insurance	1.08%
26	Kemper	1.06%
27	EMC Insurance	1.00%
28	Clear Blue Insurance	0.98%
29	AmTrust Financial	0.95%
30	Arch Capital	0.91%
31	CSAA Insurance Exchange	0.85%
32	Markel	0.84%
33	The Hanover Insurance Group	0.64%
34	Canal Insurance	0.63%
35	FCCI	0.60%
36	Everest Re	0.56%
37	Utica National Insurance Group	0.56%
38	Trisura Group Ltd.	0.55%
39	Prime Insurance	0.52%
40	Brookfield Reinsurance Ltd.	0.50%
40	Skyward Specialty Insurance Group	0.49%
42	StarStone	0.49%
43	American Family Insurance	0.48%
44	IAT Insurance	0.47%
45	AF Group	0.47%
46	Mercury Insurance	0.46%
47	American Transit Insurance	0.46%
48	Western National Insurance	0.45%
49	Westfield Insurance	0.44%
50	West Bend Mutual Insurance Co.	0.41%

Source: S&P Global Market Intelligence, based on 2022 direct written premiums

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We evaluated 28 companies based on commercial auto insurance complaints made to state regulators in 2021, using data from the National Association of Insurance Commissioners.

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