- Do I need commercial auto insurance in Colorado?
- What are the minimum requirements for commercial auto insurance in Colorado?
- What does commercial auto insurance in Colorado cost?
- Who are the top commercial auto insurers in Colorado?
- How can I get commercial auto insurance in Colorado?
- What types of vehicles are covered under commercial auto insurance in Colorado?
- What does commercial auto insurance in Colorado cover?
- What does commercial auto insurance in Colorado not cover?
- What our expert says
- Frequently asked questions (FAQs): Commercial auto insurance in Colorado
Do I need commercial auto insurance in Colorado?
If you use a vehicle for work purposes, commercial auto insurance is required in Colorado.
In Colorado, the commercial auto limits you need depend on vehicle weight, cargo, passengers and whether your business vehicles cross state lines.
If your business vehicle is a standard-size sedan, pickup, or van, the commercial auto insurance policy required is similar to that for a personal vehicle. However, you need to buy a commercial auto policy because your risks are different when using a work vehicle than when using your personal car.
Expert InsightIt’s wise to carry higher liability limits than the minimum, especially for light-weight commercial vehicles, because in an accident, people can assume the business has deep pockets. Higher limits provide more protection in case of a lawsuit.
Here are questions to review to determine if you need commercial auto insurance in Colorado. If you answer yes to any of them, you’ll generally need a business or commercial policy.
- Do I use my car on a regular basis for work?
- Do I use my car for deliveries, transporting people or goods?
- Do I use my car to visit clients?
- Do my employees or I frequently use the vehicle for business purposes?
- Do multiple drivers, such as employees or contractors, drive the vehicle?
- Is the vehicle owned, leased or registered in the company’s name?
- Do I carry passengers for business reasons (clients, employees or rideshare work)?
- Do I already carry other business insurance policies (like general liability or workers’ comp)?
- Do any of my work vehicles qualify as commercial motor vehicles under Colorado or FMCSA rules due to weight, passengers, or hazardous materials? If yes, you'll likely need higher liability limits than the basic 25/50/15 policy.
What are the minimum requirements for commercial auto insurance in Colorado?
Colorado’s base minimum is 25/50/15 liability for many light vehicles, but regulated trucks and buses may need much higher limits – often $750,000 or more – depending on vehicle type, weight, cargo and whether they operate in interstate commerce.
A car, pickup truck or van requires lower limits than flatbed trucks, box trucks, tractor-trailers or heavy-duty construction vehicles. A vehicle’s gross vehicle weight rating (GVWR) usually helps determine the classification it falls into.
Also, if you cross state lines and operate in interstate commerce, or haul regulated materials,Federal Motor Carrier Safety Administration (FMCSA) financial responsibility rules and regulations are triggered. These insurance limits range from $300,000 to $5 million depending on your vehicle and cargo.
| Type of vehicle | Minimum insurance requirements |
|---|---|
Standard registered vehicles, such as:
| Liability: 25/50/15, which stands for:
|
Medium commercial vehicles 10,001 to 26,000 lbs GVWR, such as:
| Liability: a combined single limit of $300,000 for bodily injury and property damage per accident for intrastate Liability: a combined single limit of $750,000 for bodily injury and property damage per accident for interstate (non-hazardous) |
| Heavy commercial vehicles 26,001 lbs or more GVWR, such as: Large delivery trucks, Tractor-trailers, Construction vehicles. | Liability: a combined single limit of $750,000 for bodily injury and property damage per accident Liability: a combined single limit of $1 million to $5 million for hazardous materials (varies based on cargo) |
What does commercial auto insurance in Colorado cost?
The average cost of commercial auto insurance in Colorado is $214, or $2,568, according to data from small business insurance agency Insureon.
What factors affect commercial auto insurance costs in Colorado?
Commercial vehicle insurance premiums depend on a variety of factors, such as:
- Vehicle type, use and value: Heavy-duty trucks and long-haul vehicles cost more to insure, as do more expensive vehicles.
- Number of vehicles insured: The more vehicles insured, the higher your rates.
- Annual mileage: Higher mileage indicates more risk and increases costs.
- Driving record: Spotless driving histories of employee drivers can help lower costs.
- Claims history: Prior commercial auto claims cause an uptick in premiums.
- Selected coverages and limits: Higher limits and more coverage carried on the policy increase costs.
- Business industry: Industries with higher risks, such as construction or trucking, will pay more due to the nature of the business and type of cargo.
- Location: Metropolitan areas like Denver and Colorado Springs may see higher rates than more urban areas.
People ask
If I own only one work van (not a fleet), do I still need a commercial auto policy in Colorado?
Yes, even if you own only one work van, you’ll need a commercial auto policy in Colorado. The state requires you to have motor vehicle insurance, and a personal auto policy won’t cover a work vehicle.
Who are the top commercial auto insurers in Colorado?
These commercial auto insurance companies offer availability in Colorado, solid financial strength and policy options for a wide range of commercial vehicles.
Allstate
Why it’s a strong option in Colorado:
Allstate's intensive Colorado agent network, with over 50 agents located around the state, offers clear guidance and tips on tailoring your commercial auto policy
Highlights:
- A+ (Superior) AM Best financial strength rating
- Vast agent network
- Offers 24/7 assistance and digital claims support
Read more about: Allstate commercial auto insurance
GEICO
Why it’s a strong option in Colorado:
While known for its online abilities, Colorado businesses can also connect with GEICO regional offices to discuss coverage options.
Highlights:
- A++ (Superior) AM Best financial strength rating
- Offers DriveEasyPro, a commercial auto safe driving program
Liberty Mutual
Why it’s a strong option in Colorado:
Liberty Mutual’s local Colorado agents can help businesses customize auto policies with clear guidance
Highlights:
- A (Excellent) AM Best financial strength rating
- Comprehensive tools for commercial auto claims management
Nationwide
Why it’s a strong option in Colorado:
Nationwide's Colorado agents can assist in tailoring your policy to meet your particular business needs
Highlights:
- A (Excellent) AM Best financial strength rating
- Strong bundling options for discounts
Progressive
Why it’s a strong option in Colorado:
- One of the largest commercial auto insurance companies in the U.S. by market share
- Great online quoting and policy management tools
- Offers Snapshot ProView telematics
Highlights:
- A+ (Superior) AM Best financial strength rating
- Offers specialized trucking coverage, great for contractors and delivery services
Read more about: Progressive commercial auto insurance
State Farm
Why it’s a strong option in Colorado:
State Farm's broad Colorado agent network ensures quick access to advice on how to build the best commercial auto policy.
Highlights:
- A+ (Superior) AM Best financial strength rating, though worth noting, this is a downgraded rating from A++ (Superior)
Read more about: State Farm commercial auto insurance
Auto-Owners
Why it’s a strong option in Colorado:
- Many discounts are available, such as fleet monitoring discount, group discount and favorable loss history
- Vast independent network of agents in Colorado, from Fort Collins to Denver and beyond
Highlights:
- A+ (Superior) AM Best financial strength rating
Offers broad range of coverage for motor carriers, such as bobtail/deadhead coverage and offer a uniform intermodal interchange endorsement.
How can I get commercial auto insurance in Colorado?
You can buy commercial auto insurance online, over the phone or in person at an insurance office. Once you’ve decided you need commercial auto insurance for your business needs, the next steps to buy are:
1. Determine your needs. Be aware of Colorado’s minimum requirement for the types of vehicles you need to place on a commercial auto policy. Then decide if the minimum limits are enough or if you’d like to bump them higher. An insurance agent can help you assess your needs and decide on the coverage and limits.
2. Gather information to get quotes. You’ll need:
- Your business details
- Driver details (number of employee drivers, driver license numbers and driving histories)
- Details of vehicles used for business (VIN, GVWR, use, and annual mileage)
- Past claims history
3. Compare quotes. Insurance companies rate risks differently, so make sure to shop around with multiple commercial auto insurance companies.
4. Buy your policy. Once you’ve found the company offering the best rates and coverage for your needs, go ahead and buy it. Depending on the insurance company and required documents, it typically takes 24 to 48 hours for the policy to be effective.
Expert tips: How can I get better rates for commercial auto insurance in Colorado?
Commercial auto insurance is a necessary expense for Colorado businesses. Here are some expert tips and strategies to help you get lower prices on your policy.
- Bundle. Start shopping with the insurer you already have your business owners policy (BOP) through, and ask about bundling discounts for buying both policies with the same company.
- Shop around. Each company sets its own rates and weights rating factors differently, so your location may result in higher rates with some insurers but not others. Or the type of vehicles may be expensive with one insurer and decently priced with another. We recommend getting quotes from at least three different companies. Comparison shopping online makes it easier to get multiple quotes.
- Ask for discounts. While shopping around, ask agents about possible discounts you may qualify for.
- Adjust your coverage, limits or deductible. Make sure you don’t have any unnecessary coverage, that your limits make sense for your needs, and see if you can increase your deductible to one you can still afford, which would lower your rates.
What types of vehicles are covered under commercial auto insurance in Colorado?
Colorado commercial auto policies can cover everything from sales cars and contractor pickups to heavy trucks, trailers and specialty equipment used in construction, agriculture and local delivery.
If a vehicle is owned, leased, rented or used by your business, it is likely eligible for commercial auto insurance but may require additional coverage beyond standard coverage.
| Vehicle type | Commercial use examples | Possible additional coverage needed |
|---|---|---|
| Passenger car | Client visits, real estate, small deliveries, ride share |
|
| Pickup truck | Construction, landscaping, hauling materials |
|
| Passenger van | Shuttle services, daycares |
|
| Flatbed truck | Construction materials, hauling equipment |
|
| Service/utility truck | Electrical, HVAC, maintenance, pest control, plumbing, |
|
| Tow truck | Towing, roadside assistance |
|
| Food truck | Food service |
|
| Box truck | Moving companies, furniture delivery |
|
| Heavy truck (>26,000 lb) | Freight transport, long-haul trucking |
|
What does commercial auto insurance in Colorado cover?
What your commercial auto insurance policy covers will depend on the coverage options you choose when buying your policy. There is certain coverage that is required, as well as optional coverage you can add on for a more robust policy.
These coverages are required in Colorado:
- Bodily injury liability coverage: Pays for injuries to others outside your vehicle that you’re at fault for in an accident. It covers medical bills, legal expenses, loss of income and funeral expenses.
- Property damage liability: Pays for damages you cause to another person’s vehicle or property, such as a pole, fence or mailbox.
These coverage types are optional, but may be a good addition to your commercial auto policy:
- Collision coverage: Pays for the repairs to your vehicle (up to the value of your vehicle) when damaged in an at-fault accident, single-vehicle collision or rollover. It comes with a deductible.
- Comprehensive coverage: Pays for repairs to your commercial vehicle or its replacement if it’s damaged due to bad weather, vandalism, theft, fire, striking an animal or falling objects. It comes with a deductible.
- Rental car coverage: Pays for a rental car to continue operations while your vehicle is being repaired.
What does commercial auto insurance in Colorado not cover?
While commercial auto insurance is broad in scope, it doesn’t cover every type of loss. Some notable exclusions are:
- Intentional damage
- Damage or destruction from pollutants
- Employee illnesses or Injuries covered by workers’ compensation
- Theft, damage or destruction of company inventory or equipment (typically covered by commercial property insurance policy)
- Accidents caused by employee drivers while intoxicated
What our expert says
Q: How important is it to check an insurer’s claims handling reputation?
Frequently asked questions (FAQs): Commercial auto insurance in Colorado
Is commercial auto insurance required in Colorado?
Yes, if you use a vehicle or fleet for business purposes, Colorado law mandates commercial auto insurance.
Can I use my personal vehicle for business in Colorado?
You can use your personal vehicle for business in Colorado, but you will need a commercial auto policy and possibly a hired and non-owned auto (HNOA) endorsement.
What is considered a commercial vehicle in Colorado?
Colorado law defines as any self-propelled or towed motor vehicle used on a highway to transport passengers or property.
Is Colorado commercial car insurance tax deductible?
Commercial car insurance premiums are tax-deductible in Colorado. Keep all premium bills to properly deduct this expense.
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