If you or your team hit the road for business—whether it’s making deliveries, driving to client meetings, or hauling equipment—your personal auto insurance probably isn’t enough. At our agency, we’ve seen a number of small businesses face serious financial risks because they didn’t have the right commercial auto coverage.
Why? Because most personal policies exclude accidents that happen while conducting business. That means your company could be stuck paying for damages, injuries, or legal costs out of pocket.
Let’s break down what small business owners need to know about commercial auto insurance—and how to get the right policy without breaking the bank.
Business Use = Different Coverage Needs
Small businesses often blur the lines between personal and professional vehicle use. But insurance companies don’t.
Here’s the reality:
- If your business owns a vehicle, nearly every state requires a commercial auto policy.
- Even if you or your employees use personal cars for work, you might still need additional protection.
- Gaps in coverage can cost you—especially if you’re not aware they exist.
That’s why it’s smart to understand your risk before something happens.
Quick Takeaways for 2025:
- State laws require commercial auto insurance for business-owned vehicles.
- Personal policies may exclude work-related driving.
- Add-ons like Hired and Non-Owned Auto (HNOA) coverage may be essential if employees use their own cars for business.
- Liability limits for businesses should be much higher than minimum state requirements—typically $500,000 or more.
How to Get a Commercial Auto Insurance Quote in 2025
Getting coverage is easier than you think. Here’s how to do it like a pro:
1. Know What You Need
Decide:
- Are you insuring company-owned, leased, or employee-owned vehicles?
- Do you need physical damage, liability, or comprehensive coverage?
- Will your policy cover just your fleet—or any car driven for your business?
2. Gather the Essentials
Before quoting, make sure you have:
- Vehicle info (VINs)
- Driver’s license numbers or MVRs
- A copy of your current policy (if you have one)
3. Shop Smart
Use quote comparison tools or call an experienced independent agent (like us!). Get at least 2–3 quotes to compare coverage options and pricing.
Let’s say you run a small landscaping business with a couple of trucks and a crew that travels between job sites daily. When your commercial auto insurance policy came up for renewal, you noticed your premium had increased significantly—even though you haven’t filed any claims. Instead of automatically renewing, you decided to compare quotes.
You used an online comparison tool and also reached out to us, your trusted independent insurance agency. We helped you gather your business and vehicle information, then shopped policies from several top-rated carriers on your behalf. Within a short time, we presented you with three quotes that offered similar coverage—but with meaningful differences in premium, liability limits, and add-on options like roadside assistance and hired/non-owned vehicle protection.
By reviewing those options side by side with us, you chose a new policy that actually increased your coverage—but at a lower monthly rate than your original renewal quote. That’s the power of comparing quotes and working with an agent who knows the ins and outs of commercial auto insurance.
4. Look Beyond the Price Tag
Choose a provider that’s strong on claims service, digital tools, and customer support—not just the cheapest rate. We recommend checking:
- AM Best Ratings
- NAIC complaint index
- Online customer reviews
5. Ask About Discounts
From safe driving tech to bundling your coverages, there are ways to reduce your costs. We’ll help you explore every opportunity to save.
At our agency, we believe great coverage shouldn’t break the bank—especially when it comes to protecting the vehicles that keep your business moving. That’s why we go beyond just offering policies. We help you uncover smart strategies to lower your commercial auto insurance costs without sacrificing protection.
From taking advantage of vehicle telematics and safe driving incentives to qualifying for discounts based on driver history or policy bundling, there are more ways to save than you might expect.
For example, many insurers offer reduced rates for small businesses that install driver safety monitoring systems or participate in safe driving programs. These technologies not only encourage better habits behind the wheel but can also provide hard data to support lower premiums. Likewise, if your business already carries other policies like general liability, workers’ comp, or even cyber coverage, bundling these with your commercial auto insurance can lead to significant multi-policy discounts.
What Does Commercial Auto Insurance Cost?
Premiums vary depending on:
- Vehicle type and use
- Number of drivers
- Driving history
- Coverage limits
In 2023, average monthly costs ranged from $150 to $574+ depending on the insurer and coverage type. But many of our clients save more by bundling policies or customizing their coverage based on actual business use.
What Does It Cover?
A standard commercial auto policy includes:
- Bodily Injury Liability – Covers injuries to others if you’re at fault.
- Property Damage Liability – Pays for damages to someone else’s vehicle or property.
- Uninsured/Underinsured Motorist – Covers you if someone else causes an accident but lacks proper insurance.
- Medical Payments or PIP – Covers medical bills regardless of who’s at fault (required in many states).
- Collision Coverage – Covers your vehicle after an accident.
- Comprehensive Coverage – Covers theft, fire, vandalism, and other non-collision events.
Optional Coverages You Should Know
Depending on your business model, we may recommend adding:
- Hired & Non-Owned Auto (HNOA): Coverage for vehicles your business rents or employees’ personal vehicles used for work.
- Gap Coverage: Pays off a lease or loan balance if a vehicle is totaled.
- Rental Reimbursement: Pays for a temporary vehicle while yours is being repaired.
- Roadside Assistance: Includes towing, jump-starts, and more.
- Drive Other Car Endorsement: Extends coverage to executives or employees using non-owned vehicles.
What’s Not Covered?
Even the best commercial auto policy won’t cover:
- Intentional damage
- Poor driver choices (like hiring someone with a bad driving record)
- Medical expenses already covered by workers’ comp
- Business tools or goods being transported (you’ll need inland marine or a BOP)
What Types of Vehicles Are Covered?
We insure a wide range of business vehicles, including:
- Work vans & service trucks
- Pickup trucks & light-duty vehicles
- Box trucks & delivery vehicles
- Food trucks & mobile services
- Passenger vehicles used primarily for business
Tips to Save on Commercial Auto Insurance
- Compare multiple quotes (we’ll do that for you!)
- Bundle policies for better discounts
- Pay annually for upfront savings
- Hire safe drivers with clean records
- Use telematics to track and improve driving habits
- Store vehicles securely when not in use
Do You Really Need It?
If you use your vehicle for business more than occasionally, yes—you likely need commercial auto coverage. And if your business owns any vehicles? It’s not just smart—it’s legally required in most states.
For occasional business use (like a sole proprietor meeting clients), your personal auto insurance may offer limited coverage with an endorsement. But don’t take chances—check with your agent to make sure you’re protected.
Ready to Protect Your Business on the Road?
Keep Your Business Moving—Partner with Alexander Agency of Saint Charles
When your business depends on wheels, you can’t afford gaps in your insurance coverage. That’s where Alexander Agency of Saint Charles comes in. We specialize in helping small businesses like yours stay protected on the road—without overpaying. Whether you drive your own vehicle for client meetings or manage a full fleet of work trucks, we’ll guide you through every step of the commercial auto insurance process.
As an experienced independent agency, we shop multiple top-rated carriers to find coverage that fits your needs and budget. We’ll explain what matters—from Hired & Non-Owned Auto protection to liability limits and policy add-ons—so you’re not just covered, but confidently covered. Let’s keep your business rolling with the right coverage, tailored advice, and savings you didn’t even know were possible. Call or visit Alexander Agency of Saint Charles today—and get rolling with confidence.