Cheapest commercial auto insurance in 2026

Cheapest commercial auto insurance by state 

According to data from small business insurance broker Insureon, the national average cost of commercial auto insurance is $1,764. But in some states, the average premiums are much lower, such as Idaho, where the average rate is $1,216 per year. Ohio is the second-cheapest at $1,326 per year. 

Prices also vary greatly by location. Location is one of the main factors insurers use to determine commercial car insurance costs. Claim frequency and costs vary by state. Some states have higher repair and medical expenses or experience more frequent severe weather claims, which raise costs for everyone in the area.  

States with lower claim costs and fewer frequent claims have much lower average premiums. Below is a list of the cheapest commercial auto insurance rates you’ll find in the 25 most populous states:  

*Average annual premium based on Insureon data 

By contrast, the cost of commercial auto insurance policies tends to be higher on the East Coast and in the South. Below are the highest average premiums you’ll find in the 25 most populous states:  

*Average annual premium based on Insureon data 

Cheapest commercial auto insurance by business category

Building design businesses and professional services, such as event planners, tend to have the cheapest commercial auto insurance costs. This business category pays an average of just $1,614 annually. 

The risks involved in the business you operate affect rates, as do the type of work vehicles you operate, your annual mileage, and your driving radius.  

Here is a list of the professions with the cheapest rates: 

*Average annual premium based on Insureon data 

At the other end of the price spectrum are trucking companies that pay significantly more and are at the top of our list of the most expensive businesses to insure for commercial auto insurance. Their costs average $9,794 per year, due to higher vehicle values and greater annual mileage.  

Here’s a list of the professions with the most expensive rates: 

*Average annual premium based on Insureon data 

Top carriers offering commercial auto insurance 

Many insurance companies offer commercial auto insurance across the country. It’s worth checking out rates with both national brands and regional carriers.  

The largest commercial auto insurance carriers usually offer coverage in the majority of the U.S., but not all operate in every state. 

 Below is a list of the top 10 commercial carriers based on direct premiums written, as recorded by the National Association of Insurance Commissioners (NAIC), an insurance regulatory organization.  

1. Progressive
2. Travelers 
3. Old Republic 
4. Liberty Mutual 
5. Berkshire Hathaway 
6. Zurich 
7. Auto-Owners 
8. State Farm 
9. W.R. Berkley 
10. The Hartford 

Take a look at our commercial auto buyers guide to compare companies side by side. And read our reviews for a more in-depth look at each, and use it as a starting point to start comparison shopping to find the cheapest rates for your business insurance needs. 

Average cost of commercial auto insurance 

On average, commercial auto insurance policies cost $1,764 per year, or $147 per month, according to Insureon. However, prices vary significantly based on risk factors insurers consider, such as your business type, location and vehicle usage. 

You’ll find small business auto insurance policies usually have higher coverage limits than personal policies, ensuring you have adequate protection for your business from lawsuits and other expenses, but that also raises the cost. 

"They [commercial auto policies] also provide flexibility for business operations, including coverage that extends to employees while driving for work," said Erika Tortorici, owner and principal of Optimum Insurance Solutions, an agency located in the Boston area. "This kind of policy is designed to protect both the business owner and the team, minimizing risk in the event of an accident." 

What factors influence commercial auto insurance costs? 

Understanding what insurance companies base your commercial auto premiums on can help you try to obtain better rates. Here are the common factors that insurance companies typically use:  

• Coverage type. In most states, the only form of insurance you're legally required to have is liability coverage. If you opt for full coverage with collision and comprehensive insurance — or add on options like rental car reimbursement — you'll pay a higher rate but have more protection. 
• Insurance policy limits. When you buy a policy, you can choose how much liability coverage you want; in general, it's wise to choose a limit enough to cover your business's assets. The higher your coverage limit, the higher your premiums will be.  
• Industry. Some industries have higher levels of risk than others. For example, those involved in trucking or construction tend to spend more time on the road and use higher-value vehicles, so insurance companies charge them higher rates.  
• Location. Areas with high costs of living, more traffic congestion and higher levels of uninsured drivers will have higher premiums.  
• Driver history. Your driving history and that of any of your employees who get behind the wheel can affect your rates. If you have any drivers with histories of speeding tickets, at-fault accidents or driving under the influence convictions, expect much higher premiums.  
• Vehicles. The number of vehicles your company has, as well as your annual mileage and the normal driving radius, are all reviewed by insurers. The more valuable the vehicle or the more you have to insure, the higher the premium. Also, the more you drive or the farther you drive from your hub, the higher the rates will be, as there is a greater risk of an accident and a claim. 

How to get the cheapest commercial auto insurance 

If you're looking to save on commercial auto insurance coverage, there are several ways to qualify for discounts and reduce your premiums. For example:  

1. Ask about discounts. Depending on your insurance company and business, you may be eligible for discount programs. Talk to your insurance agent or your company about what discounts are available. For example, your business may qualify for paid-in-full or claims-free discounts. 
2. Adjust your deductible. Your commercial auto insurance deductible is how much you have to pay for repairs or damages before your insurer will cover the claim. Raising your deductible — for example, increasing it from $500 to $1,000 — will reduce your monthly or annual premium.  
3. Sign up for telematics. Telematics programs can be especially helpful for business owners. Using mobile apps or devices to track vehicle usage and employees' driving habits, these programs can help your business reduce commercial auto insurance costs.  
4. Bundle coverage. As a business owner, you likely need several forms of insurance, such as a business owners' policy, cyber liability and commercial auto coverage. If you purchase multiple forms of insurance through one insurer, you could qualify for a multi-policy discount. 
5. Shop around. Commercial auto insurance rates vary by location, vehicle type, company and other factors. If you feel like your coverage is too expensive, request quotes from several insurance companies to compare your options. You may find that you can save hundreds by switching insurance companies.  

Work with an agency that has access to a variety of carriers and can compare rates on your behalf, Tortorici says. "A good agent will help you balance affordability with the coverage you truly need," she says. 

Why do small businesses need commercial auto insurance? 

Whether you use your own car for the occasional delivery or own several cars exclusively for business use, you need a commercial auto insurance policy.  

"Commercial coverage offers higher liability limits, protects employees, and covers work-related use," Tortorici says. "Personal policies can deny claims if the vehicle is used for business." 

Commercial auto policies provide essential protection. For example, say your company delivers cakes in your city. Your delivery driver got distracted and rear-ended a car at a red light, and the other driver was injured and his car was damaged.  

Without a commercial auto policy, you risk the insurer denying the claim, which could leave you responsible for the injured driver's medical bills and property damage and can cost thousands.  

Even if you're a solopreneur, commercial auto insurance is important. (You can learn more about sole proprietor business insurance here.) 

"Not only would it [a commercial auto policy] offer more robust liability protection, but it would also help cover the goods in transit — something a personal policy typically doesn’t do," Tortorici says.  

What our expert says

Q: Why do small businesses need commercial auto insurance?

Erika Tortorici Founder and principal of Optimum Insurance Solutions

"Commercial coverage offers higher liability limits, protects employees, and covers work-related use. Personal policies can deny claims if the vehicle is used for business."