What Does Commercial Auto Insurance Cover And Who Do You Need It

What Does Commercial Auto Insurance Cover And Who Do You Need It

Are you searching for an ultimate guide to Commercial Auto Insurance coverage? You are almost there. Business owners understand the significance of being ready for unforeseen circumstances. The timing of an accident or the vandalization or theft of your commercial vehicle is completely unpredictable. That is why Commercial Auto Insurance is very crucial.

For some small businesses, driving is a must. When you need to pick up supplies, meet clients, or run errands, you can utilize either your personal or company vehicle. Accidents that happen while you’re driving a vehicle for work typically won’t be covered by your personal auto insurance policy. 

In the event of an accident involving your car or vehicle, Commercial Auto Insurance, a form of small company insurance, can cover the costs of repairs. Additionally, this type of insurance covers legal fees and medical bills if another driver sues you. Isnurigo Inc. is a prominent insurance provider with a team of expert brokers having years of experience.  In this tutorial, we will help you learn about Commercial Auto Insurance including how it works, what it covers, how much it costs, and where to purchase it.

What is Commercial Auto Insurance?

Commercial Auto Insurance helps companies avoid losing a lot of money when their vehicles are stolen, damaged, or involved in accidents. This kind of insurance can cover a lot of different kinds of cars, trucks, vans, and buses.

Keep in mind that business auto insurance is not the same as personal auto insurance. Commercial vehicle insurance is for cars that are used for business. Personal auto insurance usually doesn’t cover cars that are used for business.

Commercial Auto Insurance can cover damage to property and liability risks that your auto insurance doesn’t cover. Having this can help protect your business in case of an accident, theft, or car damage.

What is Covered by Commercial Auto Insurance?

Standard Commercial Auto Insurance policies pay for medical expenses, repairs to damaged property, and cleanup of polluted areas in the event of an accident involving an insured vehicle. 

You or an employee can rest assured that your business will be protected if you are found to be at fault for an accident involving bodily harm or property damage caused by your vehicle. A minimum level of liability insurance is required for registered vehicles in the majority of states. The following coverage is offered in a commercial Auto Insurance policy:

Liability coverage

Both bodily injury liability and property damage liability coverage are available in Commercial Auto Insurance policies. Vehicle liability insurance is mandatory in all 50 states.

Imagine an accident that occurs when an employee is using a business vehicle. You can help cover the other driver’s medical expenses and vehicle repairs with bodily injury and property damage coverage, respectively.

Collision coverage

Following a covered accident, collision coverage can assist with the cost of repairs or replacement of your corporate car in the event of a total loss by Commercial Auto Insurance coverage.

Comprehensive coverage

For incidents other than collisions, such as theft, fire, vandalism, or hail, comprehensive coverage can assist with the cost of repairing your commercial vehicle. If your business vehicle is damaged by hail during a storm, comprehensive Commercial Auto Insurance coverage can assist with the repair costs.

Uninsured/underinsured motorist coverage

If one of your workers sustains injuries in an accident caused by a driver without insurance or with inadequate coverage, this policy will assist with their medical expenses.

Rental car coverage

You can keep your business running with Commercial Auto Insurance through rental car coverage if your work vehicle needs to be repaired after an accident.

Options and Add-ons in Commercial Auto Insurance

These are the basic components of any Insurance policy to make it unique, you can add on endorsements that cover things like:

Roadside Assistance

If an emergency arises that is beyond the scope of your business auto insurance, roadside assistance will be there to help. Tire blowouts, dead batteries, and car lockouts are all examples of what could happen.

New vehicle replacement cost coverage

Guarantees the purchase of a brand-new or almost new vehicle in the event of a total loss. Commercial Auto Insurance can also provide additional protection if your loan balance exceeds the car’s fair market value.

Hired auto physical damage with loss of use coverage

Damages to a rented or leased car, including comprehensive and collision coverage, and any additional responsibilities to the rental or leasing firm are covered by this.

Auto loan or lease coverage

Additionally, Commercial Auto Insurance helps pay for the remaining balance on your loan or lease if your car is totaled in an accident and isn’t worth as much as it was before.

Expanded towing

Supplements your regular Commercial Auto Insurance policy with additional towing coverage. Minor roadside repairs, jump starts, and towing are also covered.

Rental reimbursement 

It will cover the cost of a rental automobile up to the policy’s limit so you can get around following an accident.

Medical payments or personal injury protection coverage

Covers medical bills if your health insurance or the insurance of your passengers does not.

What Isn’t Covered by Commercial Auto Insurance?

When driving for work, Commercial Auto Insurance is a must-have policy. It does not, however, address a few specific points.

What usually isn’t covered by Commercial Auto Insurance is:

  • Whatever it is that you have in your car
  • Sharing rides for a ridesharing service
  • Workers’ compensation insurance pays for injuries sustained by employees while on the job
  • Cases involving rental car accidents
  • Mishaps that take place when workers use their cars for work-related purposes

In most cases, Commercial Auto Insurance will only cover the vehicle itself and not its contents. You should get inland marine insurance or commercial property insurance separately to protect your company’s belongings while they are in transit.

How Does Commercial Auto Insurance Work?

Commercial auto insurance covers risks that are unique to a company’s operations. If you have workers who use business vehicles, for instance, your insurance might need to include non-owned vehicle coverage. You should get a commercial policy that covers your vehicle if you’re self-employed and use it primarily for business purposes.

Yet again, both liability and collision damage coverage are options available with Commercial Auto Insurance. You might gain more protection in the event of a lawsuit than you would with a standard personal insurance policy. If you or an employee are concerned about the possibility of a lawsuit against your company stemming from an accident, no need to worry as you are covered.

Personal vs. Commercial Auto Insurance

Since both personal and Commercial Auto Insurance policies cover physical damage and liability, they function similarly. The key distinction between the two is the owner of the vehicle, which can be either an individual or a company. To legally use a company car, Commercial Auto Insurance is a need. There is a kind of auto insurance known as hired and non-owned auto insurance that applies to workers who use their vehicles for business purposes. Vehicles rented or leased for business purposes are likewise subject to this.

Compared to Commercial Auto Insurance, personal auto insurance is often less expensive. The owner and any members of their immediate family who drive frequently are usually covered by personal auto insurance. Commercial Auto Insurance, on the other hand, protects not just the owner and staff but also any third parties who may be riding shotgun in a company vehicle, such as clients or suppliers. Businesses often pay more for Commercial Auto Insurance since it covers more risks and has more extensive coverage.

Do I Need Commercial Auto Insurance?

If you don’t have Commercial Auto Insurance, you could end up footing the bill for injuries and property damage caused by corporate vehicles.

When you don’t have Commercial Auto Insurance, you could end up footing the price for any injuries you or an employee sustains in an accident involving company property. Property owners and passengers in other vehicles may have legal recourse against you, and you may be financially responsible for their medical bills and other damages.

If you own a commercial vehicle, you may add collision and comprehensive coverage to your policy to assist cover the costs of repairs or replacement in the event of an accident, theft, vandalism, flood, fire, extreme weather, or animal collision.

Commercial Auto Insurance’s Average Cost

How much you pay for Commercial Auto Insurance will be proportional to your company’s size and other specific requirements. You might have to get more coverage if your small business starts to take off.

To get more information about the Commercial Auto Insurance plans and rates offered by Insurigo Inc., contact an independent agent today. You can tailor our coverage choices to fit your company’s specific requirements.

Additionally, we provide AutoAccel, a solution that caters to businesses that have more generous driver eligibility requirements compared to standard Commercial Auto Insurance policies, especially for individuals with a poor driving history. Our “problem solver” product is how we like to describe it. For more information about additional coverage choices for your business, speak with an independent agent today.

Who Needs Commercial Auto Insurance?

Most states mandate Commercial Auto Insurance for business-owned automobiles. You probably won’t get much, if any, liability protection for your company vehicles under most individual auto plans. 

For example, Commercial Auto Insurance might not be necessary if you mostly use your vehicle for personal errands and only sometimes for work-related activities. You might want to look at options like hired and non-owned vehicle insurance or a personal auto policy with restricted business coverage.

Is Commercial Auto Insurance Policy Mandatory by Texas Law?

Yes, in Tеxas having Commercial Auto Insurance, is mandatory by law. Businеssеs that opеratе vеhiclеs for businеss purposеs arе rеquirеd to carry Commercial Auto Insurance to mееt thе statе’s minimum covеragе rеquirеmеnts. This insurancе hеlps protеct against liabilitiеs and risks associatеd with using vеhiclеs for commеrcial activities еnsuring compliancе with Tеxas law safеguarding both businеssеs and thе public. 


In conclusion, businesses that deal with the complexities of vehicle usage should be familiar with the broad spectrum of Commercial Auto Insurance. Businesses can safeguard themselves financially against events, injuries, or property damage that may occur as a result of work vehicles with this coverage, which is similar to personal auto insurance. To protect their assets, businesses can get Commercial Auto Insurance that includes liability, comprehensive, and accident coverage. Make sure you get enough insurance after you evaluate your business’s unique needs. This way, companies can drive worry-free knowing they have appropriate insurance and can concentrate on what they do best, rather than worrying about the future. Insurigo Inc. is an industry-leading insurance provider offering exceptional Commercial Auto Insurance policies customized to your business-specific needs. Call us now or get quotes for a free consultation.


Do I nееd both commеrcial and pеrsonal auto insurancе?

You typically nееd both commеrcial and pеrsonal auto insurancе if you usе your vеhiclе for businеss purposеs. Pеrsonal insurancе may not covеr businеss rеlatеd liabilitiеs making Commercial Auto Insurance covеragе еssеntial for adеquatе protеction.

What commеrcial auto rеntal insurancе?

Commеrcial auto rеntal insurancе is a sеparatе policy that providеs covеragе for vеhiclеs usеd for businеss purposеs whilе bеing rеntеd. It safеguards against potential damagеs and liability business intеrruptions during thе rеntal pеriod.

Is commеrcial auto insurancе еxpеnsivе?

The cost of Commercial Auto Insurance can vary based on factors such as thе typе of businеss and vеhiclе usagе and covеragе nееds. Whilе it may sееm morе еxpеnsivе than pеrsonal insurancе and it offеrs spеcializеd protеction tailorеd to businеss rеlatеd risks.

Doеs commеrcial auto insurancе covеr pеrsonal usе?

Commercial Auto Insurance generally does not covеr pеrsonal usе of a vеhiclе. It is dеsignеd to protеct businеssеs and thеir assеts during work rеlatеd activitiеs. Pеrsonal usе may rеquirе a sеparatе pеrsonal auto insurancе policy to еnsurе comprеhеnsivе covеragе.