Commercial Auto Insurance That Works for You

What is commercial auto insurance?

Commercial auto insurance generally covers vehicles owned, leased, hired, or used by a business, subject to the vehicles, drivers, coverages, limits, deductibles, exclusions, and coverage symbols shown on the policy. A contractor's pickup, cargo van, or box truck used for jobs is typically insured on a commercial auto policy rather than a personal one.

What is the Rule of 22?

The Rule of 22 is our savings benchmark: if your business has 2 or more trucks and has been with the same insurance carrier for 2 or more years, you could save up to 40% on your commercial auto insurance premiums. Eligibility and actual savings depend on the carrier's underwriting review.

Does a personal auto policy cover business use?

Often it does not. Many personal auto policies limit or exclude vehicles used regularly for business, vehicles titled to a business, and vehicles carrying tools or materials for work. Whether a specific claim is covered depends on the policy language, so the safest step is to have your current policy reviewed before a loss happens.

Who needs commercial auto insurance?

Businesses that own or operate work vehicles typically need it — HVAC, electrical, plumbing, pest control, landscaping, irrigation, painting, roofing, pool service, cleaning and restoration companies, general and artisan contractors, delivery businesses, and other field-service operations. State financial-responsibility laws and customer contracts may also require it.

How much does commercial auto insurance cost?

There is no flat price. Cost depends on vehicle type and value, radius of operation, garaging location, driver motor vehicle records, years in business, loss history, coverages and limits selected, deductibles, and the carrier's underwriting rules. Two similar-looking contractors can price very differently.

Does commercial auto insurance cover tools in my truck?

Not automatically. Tools and materials carried in a vehicle are usually insured under inland marine (contractor's equipment) or motor truck cargo coverage rather than the auto physical damage coverage on the vehicle itself. Equipment permanently attached to the vehicle may be treated differently. Coverage depends on the policy form and endorsements.

Are employees who drive company vehicles covered?

It depends on how the policy is written. Coverage for employee drivers, employees taking vehicles home, employees driving their own vehicles for work (hired and non-owned auto), and personal use of company vehicles are all controlled by the coverage symbols, scheduled drivers, and endorsements on the policy. These should be reviewed individually.

What are commercial auto coverage symbols?

Coverage symbols are the numbers on the declarations page that define which vehicles a coverage applies to — for example, any auto, owned autos only, specifically described (scheduled) autos, hired autos, or non-owned autos. Symbols are one of the most common places a business discovers a coverage gap after a claim.

What information do you need to quote commercial auto insurance?

Generally: the legal business name and state, the industry and operations, years in business, a vehicle schedule with VINs and values, a driver list, current coverages and limits, renewal date, current carrier, and loss history. Uploading your current policy declarations page is usually the fastest way to get an accurate comparison.

Is a quote the same as coverage?

No. A quote is an estimate based on the information provided and is subject to underwriting review. Coverage exists only when a policy is bound and issued by the carrier, and a certificate of insurance is evidence of a policy — it does not by itself prove that every contract requirement is met.

Want these answers applied to your own trucks? See the commercial auto classes we write or upload your current commercial auto policy for a review.