Commercial Auto Insurance

Commercial auto insurance is for businesses with a fleet or a few vehicles used for business purposes. In most cases, these vehicles are used to transport goods or people. The insurance covers the vehicles for damages, liabilities and additional expenses.

Does My Business Need It?

Commercial auto insurance can insure different types of vehicles, including dump trucks, tankers, tractor trailers, and more. Vans and buses used to transport goods or passengers can be insured as well, as long as they’re strictly for business use. A company usually buys this coverage for a fleet of registered automobiles, trucks, vans or buses.

How it works

Insurance for commercial vehicles comes with a monthly premium just like other types of insurance. Different variables determine the cost of the monthly premium. Most likely, heavy-duty trucks weighing well above 20,000 pounds will cost more to insure than a small van used to deliver flowers. Risk also plays a factor in premium costs.

Types of Coverage

At the least, a business that needs commercial auto insurance should get liability coverage. That will cover bodily injuries and property damage in an accident between an insured commercial vehicle and other automobiles. Depending on the coverage, the insurance for commercial vehicles also pays for repairs. This usually requires comprehensive and collision coverage. Roadside assistance is an option as well, especially for trucks that are on the road often.


When commercial vehicles are insured, that’s a huge benefit for the company. Damaged vehicles can be quickly repaired, restored and put back on the road. The company is also protected against the cost of cleaning up spills of chemicals and other hazardous materials. Best of all, if a driver gets into an accident while driving one of these vehicles, the insurance can pay for any lawsuits or damages that result.