Commercial Auto Insurance

Commercial auto insurance is insurance for business vehicles. Any vehicle used in the operation of a business is eligible for this coverage. It’s specifically tailored to fit business needs, and is not the same as personal auto insurance.

The monthly premium for a commercial vehicle depends on several things. A vehicle used to transport freight usually costs more depending on how far the vehicle travels. But a small transit van that provides local service would be less expensive. And since older vehicles are at risk of mechanical failures, they might be more expensive for commercial insurance as well.

Types of Coverage

Like with all automobiles, liability insurance is mandatory for any commercial vehicle. This is basic coverage that pays to cover medical bills of injured drivers and passengers. Liability also covers property damage caused by a commercial vehicle. Then there is comprehensive insurance, which provides financial assistance following damage involving anything excluding direct collisions with other vehicles. Collision coverage can pay for interior and exterior damage of a commercial vehicle following an accident.


Commercial auto insurance can protect a business from financial ruin. If a serious auto accident happens, then the business could be liable for damages. Commercial auto insurance will help pay for the expenses.