Commercial auto insurance covers vehicles your business owns or uses for work. It pays for injuries and property damage you cause in a crash, repairs to your own vehicles, and medical and uninsured-motorist costs. You probably need it if a vehicle is titled to your business, employees drive it, it carries goods or people for a fee, or it is heavier than a normal pickup. A personal auto policy often won't pay a claim from that kind of driving. Every state except New Hampshire requires auto liability coverage, and minimums run from 15/30/5 in Pennsylvania to 50/100/50 in North Carolina (table below). Insureon's small-business customers in the trades pay about $188 a month (handymen) to $413 a month (concrete contractors) for commercial auto, by Insureon's 2026 figures.
This guide is part of QuoteSweep's business insurance section, written for owners buying a policy. If you run a for-hire trucking company, the federal rules below apply, and trucking insurance is the better starting page.
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Do you need commercial auto insurance?
Yes, if any of these describe a vehicle you use for work. Progressive Commercial lists the same tests on its commercial vs personal auto page:
- The vehicle is owned by or titled to the business.
- Employees drive it regularly.
- It carries goods or people for a fee.
- It is heavier than a typical pickup or SUV: a dump truck, a semi, a vehicle pulling a commercial trailer.
- A client contract, lease or lender requires higher liability limits than a personal policy offers.
If none of those apply, you may not need it. Progressive's example is an accountant who drives to client meetings: a personal policy usually covers that. The Texas Department of Insurance makes the same point from the other side, warning home-based business owners that their auto insurance "probably won't cover accidents" while making deliveries.
One policy can do both jobs. Progressive says a commercial auto policy can cover a vehicle's work and personal driving, so you don't carry two policies on the same van.
If your employees drive their own cars for errands, the business has a separate exposure. That's hired and non-owned auto, covered below.
When does a personal auto policy stop covering work driving?
When the driving starts earning money directly. Personal policies are written for personal driving, and the two below carve out paid transport of people or goods.
The wording is specific. A GEICO personal auto amendment filed with Maine's Bureau of Insurance (form CC1142, 2014 edition) removes liability, medical payments and physical damage coverage for a vehicle used "to carry persons or property for compensation or a fee." It names food and product delivery and ride-sharing. An ordinary car pool stays covered.
Progressive's personal policy used near-identical wording, quoted by the Minnesota Supreme Court in Latterell v. Progressive (2011). The court found the wording clear but refused to enforce it for underinsured-motorist benefits, because of Minnesota's no-fault act. Don't count on that outcome in other states.
Your own policy may say something different, so read the exclusions page or ask your insurer one direct question: "Am I covered while I'm driving for pay?"
Food delivery and rideshare (DoorDash, Uber)
The GEICO amendment above excludes both. Before you drive for an app, ask your personal insurer whether it sells a rideshare or delivery add-on, and read what the app's own insurance covers and when it starts. This guide doesn't cover app programs in detail; the commercial auto policies below are for businesses, not app drivers.
Vehicles owned by your LLC
Ownership is one of Progressive's tests: if the vehicle is titled to the business, a commercial policy is the likely fit. Forming an LLC doesn't by itself change your auto coverage. Who owns the vehicle and how it's used does.
Heavy pickups, trucks and trailers
Weight is the other test. Progressive points to dump trucks, semis and commercial trailers as vehicles that need commercial coverage. If you haul for hire across state lines, federal minimums also apply (see federal minimums).
What commercial auto insurance covers
A business auto policy is built from separate coverage parts. You choose limits for each, and each one appears on the declarations page.
| Coverage part | What it pays for | Required? |
|---|---|---|
| Liability: bodily injury (BI) | Medical bills, lost wages and legal claims of people you injure | Yes, in every state except New Hampshire |
| Liability: property damage (PD) | Other people's vehicles and property you damage | Yes, same as above |
| Comprehensive | Your vehicle: theft, vandalism, fire, weather, hitting an animal, glass | Optional by law; a lender or lessor may require it |
| Collision | Your vehicle after it hits another vehicle or object | Optional by law; a lender or lessor may require it |
| Medical payments or PIP | Medical costs for your driver and passengers, regardless of fault | Required in no-fault and some other states (see table) |
| Uninsured/underinsured motorist (UM/UIM) | Your injuries when the other driver has no or too little insurance | Required in some states (see table) |
| Hired and non-owned auto (HNOA) | Liability when you rent a vehicle or an employee drives their own car for work | Optional |
Liability limits come in two shapes. A split limit such as 25/50/25 means $25,000 per injured person, $50,000 for all injuries in one crash, and $25,000 for property damage. A combined single limit (CSL) is one amount that covers all three.
Two gaps to ask about. Tools and equipment you carry in the vehicle are a separate question; inland marine (tools and equipment) coverage is the policy built for them. And no policy pays past its limits, which is where commercial umbrella insurance comes in.
Which vehicles your policy covers: covered auto symbols
On a policy written on ISO's Business Auto Coverage Form (CA 00 01), each coverage on your declarations page has a number next to it, called a symbol, that says which vehicles that coverage applies to. Two policies with the same limits can cover very different sets of vehicles. The definitions below follow National Underwriter's FC&S reference on the form.
| Symbol | Vehicles covered |
|---|---|
| 1 | Any auto |
| 2 | Autos the business owns |
| 3 | Owned private passenger autos only |
| 4 | Owned autos other than private passenger (trucks, vans) |
| 5 | Owned autos that must carry no-fault coverage |
| 6 | Owned autos that must carry uninsured motorist coverage by law |
| 7 | Only the autos listed on the policy |
| 8 | Hired autos (rented, leased or borrowed), but not autos borrowed from employees, partners or members or their households |
| 9 | Non-owned autos, such as an employee's car used for your business |
| 19 | Mobile equipment subject to a compulsory or financial responsibility law |
What to check: if your liability line shows only symbol 7, only the vehicles listed on the policy are covered for liability. An employee's car isn't. Ask your agent which symbols apply to liability and why.
Hired and non-owned auto insurance: when employees drive their own cars
Hired and non-owned auto insurance (HNOA) covers the business's liability when someone drives a car the business doesn't own for work: an employee running to the bank in their own car, or a rental for a job site. It is liability coverage only.
Progressive Commercial says HNOA covers third-party injury and damage but not the vehicle itself, and doesn't cover commuting or personal errands. The Hartford adds that it excludes property stolen from the vehicle and normal wear and tear. So when an employee crashes on a work errand, HNOA answers the lawsuit against your business. Repairs to the employee's car are a matter for the employee's own policy, if it covers that trip.
You can buy HNOA as part of a commercial auto policy or add it to a business owner's policy as an endorsement. On the standard ISO business owner's policy, Verisk describes the hired and non-owned auto endorsement as excess liability coverage, meaning it pays after other insurance that applies. If your business owns no vehicles but people drive for it, that's the add-on to ask for.
Minimum commercial auto liability limits by state
Every state except New Hampshire requires auto liability insurance. The table shows each state's minimum in the BI per person / BI per accident / PD format, in thousands of dollars. Each figure was checked against the state statute or a state agency page on October 10, 2026 (archived copies where the official site blocked access).
Treat these as floors, not targets. Pennsylvania's minimum pays at most $15,000 for one injured person, less than a serious injury can cost. If a client contract or lease names higher limits, those are the limits you need. Click your state for its full business insurance requirements.
| State | Minimum liability | Recent change | Law (source) |
|---|---|---|---|
| Alabama | 25/50/25 | Code of Ala. §32-7-6(c) (Alabama Dept. of Revenue) | |
| Alaska | 50/100/25 | AS 28.20.440 | |
| Arizona | 25/50/15 | Raised from 15/30/10 for policies from July 1, 2020 | A.R.S. §28-4009(A)(2)(b) |
| Arkansas | 25/50/25 | Ark. Code §27-22-104 (Arkansas Insurance Dept.) | |
| California | 30/60/15 | For policies from Jan 1, 2025; rises to 50/100/25 for policies from Jan 1, 2035 | Cal. Veh. Code §16056 |
| Colorado | 25/50/15, plus $5,000 med pay unless rejected in writing | C.R.S. §10-4-620 (Colorado Division of Insurance) | |
| Connecticut | 25/50/25, plus UM/UIM at the same limits | Conn. Gen. Stat. §14-112(a), §38a-336(a) | |
| Delaware | 25/50/10, plus PIP $15,000/$30,000 | 21 Del. C. §2902(b)(2), §2118(a) | |
| District of Columbia | 25/50/10, plus UM 25/50 BI and $5,000 PD | D.C. Code §31-2406 | |
| Florida | No bodily injury minimum for standard registration: $10,000 PD (or $30,000 combined) plus $10,000 PIP. Heavier commercial vehicles: see below | Fla. Stat. §324.022(1), §627.736(1) | |
| Georgia | 25/50/25 | Georgia Office of Commissioner of Insurance | |
| Hawaii | 40/80/20 | Raised from 20/40/10 for policies from Jan 1, 2026 | HRS §431:10C-301(b) |
| Idaho | 25/50/15 | Idaho Code §49-117(20) | |
| Illinois | 25/50/20, plus UM 25/50 | 625 ILCS 5/7-203 (Illinois Dept. of Insurance) | |
| Indiana | 25/50/25, with UM/UIM included unless rejected in writing | IC 9-25-4 (Indiana BMV) | |
| Iowa | 20/40/15 | Iowa Code §321A.1(11) | |
| Kansas | 25/50/25, plus PIP | K.S.A. 40-3107 | |
| Kentucky | 25/50/25 or $60,000 single limit, plus no-fault benefits | KRS 304.39-110(1) | |
| Louisiana | 15/30/25 (higher for motor carriers over 20,000 lb, see below) | La. R.S. 32:900 | |
| Maine | 50/100/25, plus $2,000 med pay | 29-A M.R.S. §1605 | |
| Maryland | 30/60/15 | Md. Code, Transp. §17-103(b) | |
| Massachusetts | 25/50/30, plus $8,000 PIP and uninsured auto 25/50 | Raised from 20/40/5 for policies from July 1, 2025 | St. 2024, c.275 (Mass. Division of Insurance bulletin) |
| Michigan | Default 250/500 BI; you may elect lower, down to 50/100. $10,000 PD applies out of state; in-state property damage is covered by PPI | Default and option system since July 1, 2020 | MCL 500.3009 (Michigan DIFS) |
| Minnesota | 30/60/10, plus UM and UIM 25/50 each | Minn. Stat. §65B.49 | |
| Mississippi | 25/50/25 | Miss. Code §63-15-3(j) (Mississippi Insurance Dept.) | |
| Missouri | 25/50/25 | RSMo 303.190 | |
| Montana | 25/50/20 | MCA 61-6-103 | |
| Nebraska | 25/50/25 | Neb. Rev. Stat. §60-310 | |
| Nevada | 25/50/20 | NRS 485.185 (Nevada Division of Insurance) | |
| New Hampshire | No compulsory insurance. 25/50/25 applies when the state requires proof of financial responsibility; any liability policy on a private passenger auto must include $1,000 med pay | RSA 264:20, RSA 264:16 | |
| New Jersey | 35/70/25 on a standard policy, plus PIP (the Basic Policy is exempt) | Raised in two steps: 25/50/25 from Jan 1, 2023, then 35/70/25 from Jan 1, 2026 | N.J.S.A. 39:6B-1 (NJ DOBI bulletin 25-06) |
| New Mexico | 25/50/10 | NMSA §66-5-215 (New Mexico MVD) | |
| New York | 25/50/10, with 50/100 for death; tow trucks need $300,000 combined | N.Y. Veh. & Traf. Law §311(4)(a) | |
| North Carolina | 50/100/50, with UIM included in all policies | Raised from 30/60/25 for policies from July 1, 2025 | N.C.G.S. §20-279.1(11) |
| North Dakota | 25/50/25 | N.D.C.C. §39-16.1-11(2)(b) | |
| Ohio | 25/50/25 | Ohio Rev. Code §4509.51 | |
| Oklahoma | 25/50/25 | 47 O.S. §7-204 (Oklahoma Insurance Dept.) | |
| Oregon | 25/50/20 | ORS 806.070(2) | |
| Pennsylvania | 15/30/5, plus $5,000 first-party medical benefit | 75 Pa.C.S. §1711(a) (PennDOT) | |
| Rhode Island | 25/50/25 or $75,000 combined single limit | R.I. Gen. Laws §31-47-2 | |
| South Carolina | 25/50/25, plus UM 25/50 BI and $25,000 PD | S.C. Code §38-77-140, §38-77-150 | |
| South Dakota | 25/50/25 | SDCL 32-35-70 | |
| Tennessee | 25/50/25; vehicles with commercial plates must be on a commercial auto policy | T.C.A. §55-12-102 (Tennessee Dept. of Revenue) | |
| Texas | 30/60/25 | Tex. Transp. Code §601.072 (Texas DPS) | |
| Utah | 30/65/25 or $90,000 combined single limit | Raised from 25/65/15 for policies from Jan 1, 2025 | Utah Code §31A-22-304(2), as amended by H.B. 113 (2023) |
| Vermont | 25/50/10 | 23 V.S.A. §800(a) | |
| Virginia | 50/100/25 | Raised from 30/60/20 for policies from Jan 1, 2025 | Va. Code §46.2-472(B) |
| Washington | 25/50/10 | RCW 46.29.090(1) | |
| West Virginia | 25/50/25 | W. Va. Code §17D-4-2(b) | |
| Wisconsin | 25/50/10, plus UM 25/50 BI | Wis. Stat. §344.15(1) (Wisconsin DOT) | |
| Wyoming | 25/50/20 | W.S. 31-9-102(a)(xi) |
Abbreviations: BI is bodily injury, PD is property damage, PIP is personal injury protection, UM/UIM is uninsured/underinsured motorist, PPI is Michigan's property protection insurance.
States with higher minimums for commercial vehicles
Most state minimums apply to every registered vehicle, business or personal. A few states set higher amounts for heavier or commercial vehicles:
| State | Rule | Law |
|---|---|---|
| Florida | Commercial motor vehicles need combined BI/PD of $50,000 per occurrence from 26,000 to under 35,000 lb gross vehicle weight, $100,000 from 35,000 to under 44,000 lb, and $300,000 at 44,000 lb or more. Vehicles under federal rules (49 CFR 387) must meet the federal levels | Fla. Stat. §627.7415 |
| Louisiana | Motor carriers over 20,000 lb: 25/50/25 up to 50,000 lb; over 50,000 lb, a $300,000 combined single limit (or $100,000 per person and $300,000 per occurrence) plus $25,000 PD | La. R.S. 32:900 |
| New York | Tow trucks: at least $300,000 combined single limit | N.Y. VTL §311(4)(a) |
| Tennessee | No higher dollar amount, but vehicles with commercial plates must be covered by a commercial auto policy | Tennessee Dept. of Revenue |
This list isn't exhaustive: we didn't capture intrastate motor-carrier rules in every state (Texas has its own, for example). If you run heavy trucks inside one state, ask your state's transportation or motor carrier office.
Federal insurance minimums for trucking and bus companies
Federal minimums apply to for-hire carriers operating across state lines, and to carriers of oil and hazardous materials. They're set by the Federal Motor Carrier Safety Administration in 49 CFR Part 387 (read October 2026).
| Carrier and cargo | Minimum liability | Rule |
|---|---|---|
| For-hire, interstate, 10,001 lb GVWR or more, general freight | $750,000 | 49 CFR 387.9 |
| For-hire and private, 10,001 lb or more: oil, and hazardous materials not in the $5M class | $1,000,000 | 49 CFR 387.9 |
| For-hire and private: hazardous substances in bulk, certain explosives and toxic gases, highway-route-controlled radioactive material | $5,000,000 | 49 CFR 387.9 |
| For-hire passenger carrier, interstate, 15 or fewer seats including driver | $1,500,000 | 49 CFR 387.33T |
| For-hire passenger carrier, interstate, 16 or more seats | $5,000,000 | 49 CFR 387.33T |
The federal endorsement on these policies is the MCS-90. Under 49 CFR 387.15, it must be on FMCSA's prescribed form and issued in the motor carrier's exact legal name.
If this section describes your business, a small-business quote form isn't the right path. Start with trucking insurance, or compare specialist providers on our commercial auto insurers page.
How much does commercial auto insurance cost?
For a small business with one or two work vehicles, expect a few hundred dollars a month. Heavy trucks cost several times more. Two sources publish figures from policies they actually sold, measured differently, so they're shown separately.
Insureon, an online broker, publishes what its own customers pay, mostly businesses with fewer than five employees. It calls these averages; its method note says they're medians of the policies its customers bought. Figures are per policy, checked October 10, 2026:
| Business type | Commercial auto, per month | Per year | Source |
|---|---|---|---|
| Handyman | $188 | $2,252 | Insureon |
| Flooring installer | $208 | $2,490 | Insureon |
| Restaurant | $222 | $2,669 | Insureon |
| Engineer | $231 | $2,766 | Insureon |
| Carpenter | $239 | $2,865 | Insureon |
| Locksmith | $250 | $3,001 | Insureon |
| Roofer | $268 | $3,212 | Insureon |
| Electrician | $275 | $3,304 | Insureon |
| Plumber | $285 | $3,415 | Insureon |
| General contractor | $287 | $3,444 | Insureon |
| Painter | $295 | $3,539 | Insureon |
| Tree service | $299 | $3,590 | Insureon |
| Concrete contractor | $413 | $4,957 | Insureon |
| Trucking owner-operator | $816 | $9,794 | Insureon |
The business type links go to our cost guide for that trade, with its other policies.
Progressive Commercial publishes 2025 averages per power unit (each truck, van or tractor) for its own customers, for liability plus physical damage with drivers who have no violations:
| Progressive customer type | Average per vehicle, per month (2025) |
|---|---|
| Business auto (vans, pickups, cars) | $276 |
| Contractors | $260 |
| For-hire trucking | $734 to $926 |
The gap between those rows is the lesson: a contractor's van and a business van cost about the same, while a for-hire truck costs roughly three times as much. What the vehicle is and how it's used drives the price. Progressive's figures also assume clean driving records, so expect more if a driver has violations. Our commercial auto insurance cost guide breaks the price down further.
Quotes for the same van can differ between insurers, so get more than one: compare business insurance quotes.
Which insurers write commercial auto for your type of business
Not every small-business insurer sells commercial auto, and those that do want some trades more than others. That matters if you'd like your general liability and auto with one company.
QuoteSweep tracks published appetite: the classes insurers say they want, taken from each carrier's own website or underwriting guide. In those records (checked March 4–10, 2026), here is how often a carrier listed commercial auto among the lines it offers for a class:
| Business type | Carrier records listing commercial auto |
|---|---|
| General contractors | 19 of 24 |
| Manufacturing | 15 of 18 |
| Wholesale distribution | 7 of 8 |
| Restaurants | 13 of 21 |
| Retail stores | 12 of 18 |
| Trucking | 5 of 8 |
| Technology companies | 8 of 20 |
| Professional services | 7 of 19 |
| Real estate | 2 of 13 |
A missing line means we didn't see commercial auto on that carrier's page for that class. It isn't proof the carrier won't write it, so ask. Two patterns stand out. Office-type classes (professional services, technology, real estate) list auto least often. And the pages we read for Hiscox, Coterie, EMPLOYERS and USLI didn't list commercial auto for any class, so if you buy from one of them, plan on a separate auto policy.
Trucking is the hardest class. Among the trucking records, CNA's guide says it offers no primary commercial auto for for-hire trucking, and Travelers and The Hartford list long-haul interstate carriers as generally or often declined. That's why trucking insurance has its own page.
For trades that drive to every job, these pages cover the full set of policies: contractor insurance, plumber insurance, pressure washing insurance, tree service insurance, handyman insurance and janitorial insurance.
What you'll need for a commercial auto quote
Progressive Commercial's quote checklist asks for:
- each vehicle's VIN, or year, make and model
- each driver's license number and three years of driving history, including CDL status, accidents and violations
- your current declarations page, if you have one (you can get a quote without a current policy)
Also have your business details ready: legal name, address, what the vehicles are used for, and who drives them. The full list for every line is in what you need for a business insurance quote.
Clients may ask you for proof of coverage before you start work. That's a certificate of insurance, which your insurer or agent issues once the policy is bound.
When you're ready, compare business insurance quotes for commercial auto alongside your other policies.
Frequently Asked Questions
What happens if I don't have commercial auto insurance?
If you crash while doing paid work in a personally insured vehicle, your insurer can deny the claim under a business-use exclusion like the GEICO one quoted above. You and your business would then face the injury and damage claims yourselves. Driving with no insurance at all also breaks the law in every state except New Hampshire.
Is commercial auto insurance required in every state?
No. Every state except New Hampshire requires auto liability insurance, and the same minimums usually apply to business vehicles. New Hampshire doesn't make auto insurance compulsory; its 25/50/25 amounts apply when the state requires proof of financial responsibility. Florida requires property damage liability and PIP but no bodily injury coverage for standard registrations.
Can I use one policy for work and personal driving?
Yes. Progressive says a commercial auto policy can cover both work and personal use of the same vehicle, so you don't need two policies on it. Ask the insurer how it handles a vehicle titled in your own name rather than the business's.
Do I need commercial auto insurance for my LLC?
It depends on the vehicle, not the LLC. If the LLC owns the vehicle, or employees drive it, or it hauls goods or people for a fee, you likely need a commercial policy. If you own your car personally and only drive to meetings, a personal policy may be enough.
Does my business need insurance if employees drive their own cars?
Yes, if they drive for work. Hired and non-owned auto coverage protects the business from claims when an employee causes a crash on a work errand. It doesn't repair the employee's car or cover their commute.
What is an MCS-90?
The MCS-90 is the federal endorsement on the liability policies of for-hire interstate motor carriers and certain hazmat carriers, the businesses subject to the minimums in 49 CFR 387.9. It must be on FMCSA's form and issued in the carrier's exact name. Most small businesses with work vans don't need one.
