Commercial auto insurance runs about $147 monthly on average, though that figure doesn’t mean much in practice. Location matters—California businesses fork over $403 per month while Idaho pays $245. Industry type swings costs wildly too. Medical offices average $161 monthly, but trucking companies shell out $816. About 37% of small businesses pay under $100 monthly, while 26% land between $100 and $200. Vehicle type, driving records, and coverage limits all push premiums around, and rates keep climbing thanks to persistent market pressures.
Design Highlights
- Commercial auto insurance averages $147 monthly or $1,762 annually, though 37% of small businesses pay under $100 monthly.
- Location significantly impacts costs, ranging from $245 monthly in Idaho to $403 monthly in California.
- Industry type affects premiums substantially, with trucking companies averaging $816 monthly versus professional services at $159 monthly.
- Premiums depend on vehicle count, type, value, usage frequency, claims history, driving records, and chosen coverage limits.
- Commercial auto insurance premiums increased 9% to 9.8% in 2024, with further rate increases expected through 2025.
Commercial auto insurance costs an average of $147 per month, or $1,762 a year. That’s the baseline. The reality? Most businesses won’t pay that exact amount. About 37% of small businesses actually pay less than $100 monthly, while 26% fall between $100 and $200. So the average is just that—an average.
Location matters more than most business owners want to admit. Alabama businesses pay around $277 monthly. Alaska hits $324. Arizona comes in at $339. California, predictably, leads the pack at $403 per month. Idaho offers some relief at $245. The state you operate in fundamentally changes what you’ll pay.
Industry type reshapes the cost equation entirely. Manufacturing businesses face brutal premiums averaging $461 monthly. Transportation and trucking companies get hammered even harder at $663 per month. Trucking businesses specifically? They’re looking at $816 monthly on average. For-hire transport trucks average $954. Contractors pay $272. Meanwhile, medical and healthcare businesses pay just $161, professional services $159, and auto services get off relatively easy at $76 monthly. Financial services pay the least at $58 monthly for state minimum coverage. The risk profile determines everything.
Several factors drive premium calculations. Number of vehicles, obviously. The value and type of those vehicles. How frequently they’re used for business operations. Claims history and driving records—past behavior predicts future risk in the insurance world. Coverage limits and deductibles chosen by the business owner also shift the numbers considerably. Commercial policies typically involve higher liability limits than personal auto insurance. For context, general liability insurance for small businesses typically costs between $30 and $85 per month, making it considerably less expensive than commercial auto coverage.
The market itself has become increasingly hostile. Premiums jumped 9% to 9.8% during the first two quarters of 2024. Rate increases are expected to continue through 2025. Why? Insurers have reported combined loss ratios above 100% for 12 of the past 13 years. Translation: they’ve been losing money.
Social inflation and nuclear verdicts have inflated claim costs dramatically. Some insurers are restricting coverage or pulling out of the market entirely.
For businesses shopping around, a few providers consistently come in cheaper. NEXT Insurance, backed by Progressive Commercial, averages $293 monthly or $3,511 annually. The Hartford hits $315 monthly. Nationwide comes in at $324. GEICO charges around $327 per month. biBERK rounds out the more affordable options at $367 monthly. Even the “cheap” providers still cost substantially more than that national average suggests. Commercial auto insurance isn’t cheap, period. It’s just varying degrees of expensive depending on where you are and what you do.
Frequently Asked Questions
What Vehicles Are Covered Under a Commercial Auto Insurance Policy?
Commercial auto insurance covers company-owned or leased vehicles used primarily for business—cars, trucks, vans, you name it. Work vans, box trucks, and service vehicles that haul tools or personnel qualify.
Specialty rides like food trucks, dump trucks, and forklifts are in too. Delivery vehicles, trailers, and permanent attachments get coverage.
Here’s the catch: hired or employee-owned vehicles need separate endorsements. Personal cars used occasionally for business? Different story entirely.
Contents inside vehicles usually require additional coverage anyway.
How Do Traffic Violations Affect My Commercial Auto Insurance Premiums?
Traffic violations hit commercial auto insurance premiums hard.
Minor infractions like rolling stops cause modest increases, especially for first-timers.
Major violations? That’s a different story. Reckless driving, excessive speeding, and DUIs can spike premiums by 25% or more. Insurers might even refuse coverage altogether.
Most violations stick around for three to five years, continuously affecting rates. Multiple violations compound the damage.
Non-moving violations like parking tickets usually don’t matter—unless they lead to license suspension. Then insurers get nervous.
Can I Use Personal Auto Insurance for Occasional Business Use?
Personal auto policies typically exclude or severely limit business use—most insurers will flat-out deny claims for work-related accidents.
Some companies allow occasional business use if it’s under 20% of annual miles, but here’s the catch: you’ll need a special endorsement.
And not all insurers even offer them. Without that endorsement, you’re risking claim denial. The definition varies, but “occasional” usually means less than once weekly.
Bottom line? Check your policy exclusions first.
What Is the Difference Between Hired and Non-Owned Auto Coverage?
Hired auto coverage kicks in for vehicles a business rents, leases, or borrows—think rental cars or short-term leases.
It can cover both liability and physical damage.
Non-owned auto coverage? That’s for employee-owned vehicles used for work stuff.
It handles liability if they crash while running business errands, but won’t fix their car.
Hired equals temporary company rentals. Non-owned equals employee’s personal ride.
Different vehicles, different scenarios.
Both plug gaps standard commercial policies miss.
Are There Discounts Available for Commercial Auto Insurance Policies?
Yes, commercial auto insurance policies come loaded with discounts.
The big ones? Paying in full can slash rates by 13% or more. Insuring multiple vehicles under one policy cuts costs. Clean driving records matter—a lot. Bundling with other business policies helps too.
Some insurers reward longevity, safe driving courses, and even autopay enrollment.
Own a hybrid? That might score savings. CDL holders and homeowners can catch breaks.
The discount menu varies by insurer, but options exist for businesses willing to hunt.
