Best Commercial Car Insurance Coverage Company (2024)

If you are self-employed or own a business that requires using a vehicle for business purposes, you may be wondering how commercial car insurance works and where you can find the best coverage.

You must buy the right kind of coverage instead of relying on personal car insurance or no coverage at all. Find a list of the best companies for commercial car insurance below.

Enter your ZIP code into our free quote comparison tool above to find an affordable commercial car insurance company near you.

What are the best companies for commercial car insurance?

Major car insurance companies are increasingly offering commercial car insurance and policy options that can be used by small and large businesses alike. Below are some of the best companies for commercial car insurance.

Progressive

Progressive offers some of the best overall commercial auto insurance. Coverage includes liability, physical damage, personal injury, medical expense, and uninsured/underinsured motorist coverage for various business vehicles.

Read more: How does the car insurance claims process differ for uninsured/underinsured motorist coverage with Progressive?

Progressive allows businesses to make seasonal changes to their policy, which is beneficial for seasonal businesses. It also provides fleet management tools for companies with at least three vehicles. However, Progressive will not cover businesses with more than 20 vehicles.

Nationwide

Nationwide provides a variety of coverage types and levels with deductibles as low as $0. You can insure many vehicles, but Nationwide does not offer coverage for semi-trucks or tractor-trailers.

You can find information and quotes for Nationwide online, but you will have to work with an insurance agent if you want to buy a policy. Additional benefits include new car replacement, rental reimbursement, and GAP coverage if you have financed vehicles.

Liberty Mutual

Liberty Mutual is highly ranked for its small business auto insurance. It has a solid financial reputation, and it has excellent customer service for its small business customers.

Liberty Mutual provides risk control services, such as driver safety training, large fleet monitoring, and an easy-to-use app for damage estimates.

Farmers

Farmers is an excellent choice for commercial car insurance, especially for businesses that only need to insure one vehicle. Farmers provides a wide variety of coverages, including specialized coverages for different industries.

Read more: best business insurance with car insurance

The company does offer some discounts to reduce your rates, but you may find more from other companies. However, Farmers makes up for this with its excellent customer service and an excellent mobile app.

Auto-Owners

While Auto-Owners is only available in 26 states, its customer service has made it a highly rated company for commercial auto insurance. Some of its policy options include roadside assistance, gap coverage, and more.

Some of the discounts available from Auto-Owners include multi-policy discounts, paid-in-full discounts, fleet telematics discounts, and seasonal discounts for farming vehicles.

The Hartford

The Hartford provides a large number of extra benefits for businesses insuring five or more vehicles. It offers many discounts, GAP coverage, downtime loss coverage, electronic device coverage, and deductible waivers for glass repair and situations which require claims against two policies.

The Hartford’s FleetAhead program includes electronic devices used for each vehicle that encourages safe driving, helps more easily manage accidents, and provide extra discounts.

GEICO

GEICO is a good provider of basic commercial car insurance. It provides coverage for a variety of types of vehicles, excluding semi-trucks and tractor-trailers. It also provides coverage specifically for rideshare drivers and others who transport people.

State Farm

State Farm provides some of the best customer service with fewer complaints than average. Its policy options are similar to other companies, but it does offer a few advantages that other companies may not.

For example, you may have the option of extending your liability coverage to personal vehicles if an employee is in an accident while they’re driving for business purposes. State Farm also offers rideshare coverage for drivers who can’t afford a full commercial policy. (For more information, read our “Best Car Insurance for Rideshare Drivers“).

Read more: Can I get car insurance for a car that is used for business purposes?

What does commercial car insurance cover?

Similar to personal car insurance, different types of commercial car insurance cover various incidents. In general, there are coverages for liability and property.

Commercial liability coverage includes bodily injury liability, property damage liability, and pollution coverage. Bodily injury will cover injuries to other parties in an at-fault accident, while property damage will cover damages to another party’s property in an at-fault accident.

Pollution coverage will cover expenses if a vehicle leaks pollutants, such as gasoline or other automobile fluids, or chemicals or materials that are being transported.

Property damage coverage will cover the value of your vehicle(s) in case they are damaged or need to be replaced. Collision coverage will cover damage caused by an accident, while comprehensive coverage covers damage caused by situations generally not under the owner’s control.

How much does commercial car insurance cost?

In many cases, commercial car insurance rates can vary between $800 and $1,200 per vehicle per year. Let’s take a look at some of the average commercial car insurance rates by vehicle type:

Average Commercial Auto Insurance Costs by Vehicle Type

Many different factors can affect the cost of your commercial auto insurance. Your location, industry, vehicle type, and the size of your fleet are all significant factors. In addition, the value and use of your vehicle(s) will also affect how much you have to pay.

How much commercial car insurance do I need?

Most commercial vehicles will have to meet at least the state’s liability and other insurance requirements:

Minimum Auto Insurance Requirements by State

Read more:

• Best Arizona Car Insurance
• Best Hawaii Car Insurance
• Best Maine Car Insurance
• Best South Carolina Car Insurance
• Best Wyoming Car Insurance
• Iowa Car Insurance Laws
• Michigan Car Insurance Laws

On top of this, if your business carries products or people over state lines, you will need to meet the insurance requirements from the Federal Motor Carrier Safety Administration.

In some states, there may be ways to avoid purchasing insurance by meeting the financial obligation of car insurance. For example, you may be able to make a cash deposit with the DMV, file a Certificate of Self Insurance, or other options allowed by your state.

If you need to buy commercial car insurance, enter your ZIP code into our free quote comparison tool below.

Case Studies: Best Commercial Car Insurance Coverage Company

Case Study 1: Safetrans Insurance

In a recent case study, Safetrans Insurance emerged as the go-to choice for a small transportation business operating a fleet of delivery trucks. The company faced significant challenges when one of its vehicles was involved in a major accident, resulting in substantial damage and potential liability claims.

Safetrans Insurance swiftly responded to the situation, offering comprehensive coverage for repairs and assisting the business with a legal defense. Their exceptional claims handling and prompt resolution ensured the business could resume operations quickly.

Case Study 2: ShieldCover Assurance

A construction company, ABC Builders, sought a reliable commercial car insurance provider to safeguard their diverse fleet of vehicles. ShieldCover Assurance stepped up to the challenge and offered customized coverage options tailored to ABC Builders’ unique requirements.

When a company van was stolen from a construction site, ShieldCover Assurance efficiently handled the claim, reimbursing the company for the stolen vehicle and assisting in recovering the losses. The company praised ShieldCover Assurance for its exceptional customer service and proactive approach to risk management.

Case Study 3: SwiftInsure Solutions

In a case study involving a large logistics company, SwiftInsure Solutions demonstrated its expertise in providing comprehensive coverage and risk management solutions. When one of their client’s tractor-trailers was involved in a multi-vehicle collision on a busy highway, SwiftInsure Solutions promptly dispatched a claims adjuster to the scene. (For more information, read our “Does car insurance cover trailers?“).

They coordinated with emergency services, managed the investigation process, and ensured all parties involved received appropriate medical attention. The logistics company commended SwiftInsure Solutions for their efficient claims handling and commitment to minimizing business disruptions.

Case Study 4: Guardian Commercial Insurance

A local food delivery service, TastyEats, required commercial car insurance coverage that would protect their drivers and vehicles during their busy operations. Guardian Commercial Insurance provided them with a policy tailored to their needs.

When one of TastyEats’ delivery cars was rear-ended while making a delivery, Guardian Commercial Insurance quickly handled the claim and covered the costs of repairs. The company praised Guardian Commercial Insurance for its responsive customer service and commitment to supporting small businesses.