If you or your employees drive for work, a personal auto policy may not cover an accident. Personal policies often exclude or limit business use, especially for vehicles that carry tools, equipment, goods or passengers for pay. Commercial auto insurance fills that gap.
What commercial auto insurance covers
- Liability: injuries and property damage you or your drivers cause to others.
- Collision: damage to your business vehicles from a crash.
- Comprehensive: theft, vandalism, fire, weather and animal collisions.
- Uninsured and underinsured motorist: protection when the other driver lacks enough coverage.
- Medical payments or PIP: medical costs for drivers and passengers, depending on your state.
When do you need commercial auto insurance?
- The vehicle is owned or leased by your business.
- You transport tools, equipment, materials or products.
- Employees drive vehicles for work.
- You carry clients or goods for a fee.
- Your vehicle has signage, ladders, racks or heavy-duty modifications.
Hired and non-owned auto coverage
If employees use their own cars or rental cars for business errands, hired and non-owned auto (HNOA) liability coverage can protect your business when their personal coverage is not enough. It is often available as an add-on to a business owner’s policy or general liability.
What affects the price
Vehicle type and value, how and where vehicles are used, miles driven, driver records, coverage limits and deductibles, and your state.
Insure your business vehicles
Get a commercial auto quote online from NEXT Insurance for trucks, vans and cars used in your business.
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Frequently asked questions
Can I use my personal car insurance for business?
Occasional business errands may be covered, but regular business use, transporting tools or goods, or company-owned vehicles usually require commercial auto insurance. Check your policy.
Is commercial auto required?
Every state requires liability coverage for vehicles on the road, and business-owned vehicles generally need a commercial policy.
Does commercial auto cover tools in my truck?
Usually not. Tools and equipment are typically covered by a separate tools and equipment (inland marine) policy.
Related business insurance guides
This page is for general information only and is not insurance, legal or tax advice. Requirements, coverage and prices vary by state, industry and insurer. Review policy documents and speak with a licensed agent before buying.