Last Updated January 2026

Commercial auto insurance costs vary so widely because this coverage, also called business auto insurance, covers such a wide variety of vehicles used in so many different ways by businesses of all sizes. It’s designed to help businesses protect their assets from liability and damage losses related to covered events like accidents, injuries and theft.

A personal auto insurance policy typically doesn’t cover vehicles used primarily for business. Most states require liability insurance on trucks and cars used for a business.

Costs are generally higher for companies that use bigger vehicles, carry valuable cargoes or equipment, have more employees and drive more miles, like trucking and delivery, than for businesses that use smaller vehicles and drive less, like real estate or consulting.

Published online premium costs for commercial auto insurance can range from hundreds to thousands a year, reflecting the multitude of business uses and the broad variety of options businesses have for covering the cars, pickups, vans, transport trucks and other vehicles they use.

Factors that may impact commercial vehicle insurance rates

Many details about a business go into determining the cost of its commercial auto insurance premium.

• Vehicle type and use. Heavier vehicles, as well as those used for deliveries or carrying tools, tend to cost more to insure than smaller ones. For example: 
  • A catering company’s refrigerated delivery van may cost more to insure than a real estate agent’s sedan. 
  • A plumber’s utility truck carrying specialized tools and heavy equipment may cost more to insure than a florist’s cargo van. 
  • A long-haul trucking company’s box truck will typically have higher premiums than a small-business owner’s passenger vehicle used for local errands. 
• Number of vehicles and drivers. More vehicles and employees typically mean higher premiums. 
• Business location. Urban areas with higher accident rates may lead to higher premiums. 
• Driving history. Clean driving records — both yours and your employees’ — can help reduce premiums. 
• Company size and revenue. Higher-revenue businesses may be assumed to have greater vehicle usage, higher claim potential and larger loss exposure, especially in liability claims. A plumbing company with $3 million in annual revenue and a busy service fleet may be rated differently from a plumbing company with $500,000 in revenue and just two trucks. 
• Additional coverages. Specialized coverages are often available for contractors, food trucks and other businesses with special insurance needs. 
• Coverage limits and deductibles. Higher coverage amounts and lower deductibles generally increase costs. 
• Claims history. A history of frequent claims may raise your rates. 

Ways to save on your commercial auto insurance costs

These are some of the strategies business owners use to reduce their commercial auto insurance costs.

• Bundling business policies.  
• Adding safety features. Installing GPS tracking, anti-theft devices and dashcams can help prevent losses and may help reduce premiums. 
• Driver training. Safe driving courses and “clear driver” policies (committing employees to rules designed to lower risks) can reduce accidents and insurance rates. 
• Reviewing your policy regularly. As your business changes, your insurance needs might too. 

More information about business auto insurance

Understanding your options is key to helping you get the right protection for your business.

• Commercial auto insurance 101, from the Insurance Information Institute (III) 
• Do I need business auto insurance if I am self-employed and use my personal car? 
• Who is covered by my business insurance policy? 
• Does a business policy cover me personally? 
• Is business auto insurance required? 
• How to file a business insurance claim 
• Coverage limits. Many insurers recommend business auto liability coverage of $1 million, or a minimum of $500,000, according to III. Typically, this is a combined single limit for property damage and bodily injury. 
• More questions about commercial auto insurance? Talk to a Farmers^® agent.

The information contained in this page is provided for general informational purposes only. The information is provided by Farmers^® and while we endeavor to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to this article or the information, products, services or related graphics, if any, contained in this article for any purpose. The information is not meant as professional or expert advice, and any reliance you place on such information is therefore strictly at your own risk.

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