Commercial auto insurance in Florida

What is commercial auto insurance?

Commercial auto insurance is a type of car insurance that protects vehicles used for business purposes, whether hauling tools and materials to a construction site in Miami or driving from one housekeeping appointment to another in Tampa. It is necessary because personal auto insurance will not cover accidents if the vehicle is being used for business purposes.

Do I need commercial auto insurance in Florida?

Yes, commercial auto insurance is required in Florida. The minimum liability requirement in the state is $10,000 in bodily injury coverage per person and $20,000 per accident, as well as $10,000 for personal property damage. On top of the liability protection, the required personal injury protection (PIP) is $10,000. However, these minimal amounts are insufficient to cover a major accident, especially one involving litigation.

Liability insurance doesn’t protect your own vehicles. For that, you’ll also need to purchase collision or comprehensive coverage. Collision insurance pays to repair or replace a vehicle after an accident involving an object or another car, while comprehensive covers damage from non-collision events, such as hail.

Keep in mind that PIP covers your drivers and their passengers, but does not cover injuries that workers’ compensation would cover. So, while you must have this protection, it may not be activated in an accident because workers’ compensation covers employees’ injuries.

You may need extra coverage if your vehicles transport passengers, haul heavy loads, or operate across state lines. Consult your agent to ensure you meet all necessary insurance requirements.

Expert InsightYou may be required to have more coverage if you drive certain types of vehicles, such as a bus used to transport people or trucks that carry heavy loads. Check with your agent if you or your employees drive such a vehicle.

What does commercial auto insurance cover in Florida?

What your commercial auto insurance policy covers will depend on the coverage options you choose when buying your policy. The following are common coverages found in Florida:

Property damage liability is required by law and pays for damages you cause to another party’s vehicle or property.
Bodily injury liability coverage pays for injuries you are at fault for in an accident. It covers medical bills, legal expenses, loss of income and funeral expenses.
Personal injury protection (PIP) covers injuries you or your passengers incur when involved in an accident, regardless of fault.
Comprehensive coverage covers the cost of repairs to your commercial vehicle or its replacement if it is damaged due to bad weather, vandalism, theft or another non-collision event.
Collision coverage covers the cost of repairs to your vehicle if it is damaged in an at-fault accident, single-vehicle collision, or rollover.
Uninsured and underinsured motorist (UI/UM) insurance pays to fix your car when you are not at fault but the other party has no or enough liability coverage.
Rental car coverage pays for a temporary replacement vehicle to continue operations while your vehicle is being repaired.

PEOPLE ASK

Does commercial auto insurance cover personal use? 

Generally speaking, if an employee is authorized to drive a company vehicle and is properly licensed, they will be covered by your commercial auto insurance policy if they drive for personal reasons.

For example, one of your workers borrows the company van to pick up lunch and run an errand. While returning from lunch, she stops short at a red light and is rear-ended. Even though the employee was not conducting business while she was driving the company vehicle, she is listed as an authorized driver and your insurance will cover the incident, up to coverage limits and minus any deductibles you may have.

How much is commercial auto insurance in Florida?

Commercial auto insurance in Florida costs $266 per month on average, the most expensive of any state. Compare that to the average cost of commercial auto insurance in the U.S., which is about $147 a month, according to Insureon.

Prices in Florida are contingent on several factors. An insurer will consider a vehicle's year, make and model. It will also consider the location of the vehicle’s home base.

For example, a commercial delivery service in traffic-choked Miami-Dade County with a fleet of 12 cargo vans will pay more for coverage than a mom-and-pop accounting firm in Gainesville with one company sedan used to visit clients occasionally.

Insurers also take into account drivers’ experience and history behind the wheel. And, of course, the insurance company and coverage options a business chooses also affect the price.

How does commercial auto insurance work in Florida?

Commercial auto insurance works like personal auto insurance in Florida. The liability coverage pays for damages to property or injuries to those who are hit by the business vehicle. The higher your liability coverage, the more money available to pay for damages and injuries.

If you have collision coverage, it will pay to fix your vehicle if it’s involved in a crash. If you have comprehensive coverage, it will pay for losses from a non-collision event, such as theft, vandalism or storm damage. Both comprehensive and collision coverage may have a deductible associated with the repairs, which is your portion of the cost of fixing the vehicle.

Types of vehicles covered under commercial auto insurance in Florida

Various types of vehicles can be covered by a commercial auto insurance policy in Florida, including:

Sedans, SUVs and minivans
Commercial cargo vans
Commercial trucks such as dump trucks and tractor-trailers
Pickup trucks
Box trucks
Service utility trucks

Top commercial auto insurance companies

Commercial auto insurance companies are licensed by each state, and regulations vary widely, which can influence rates in Florida and elsewhere. It is wise to shop around for the best commercial auto insurance and look for the cheapest rates. Several national carriers offer insurance in most states, including:

Allstate
Berkshire Hathaway Guard
GEICO
Kemper
Liberty Mutual
Nationwide
Progressive
Sentry
State Farm
The Hartford

What isn’t covered by commercial auto insurance?

While commercial auto insurance is broad in scope, it doesn’t cover every type of loss. Some notable exclusions are:

Injuries covered by workers’ compensation
Intentional damage
Damage from pollutants

How to buy commercial auto insurance in Florida

Buying commercial auto insurance in Florida is a fairly straightforward process. To begin, you’ll want to obtain quotes from at least three different carriers in order to get a good sense of the cost. Some insurers will provide initial quotes online, while others require you to work with a local agent. Either way, you will need to provide the following information:

Employee names, license numbers, and driving histories
Number of vehicles, including year, make, model, and VIN
Vehicle usage (e.g., hauling supplies vs. client visits)
Annual mileage
Business address
Desired coverage type and limits

Bear in mind that an initial rate quote is merely an estimate; you won’t have a final until you have applied for coverage and the insurer has taken the time to review your application and check your information. Working with a licensed agent or broker who has experience with small businesses can help ensure that you get the best coverage for your needs.

Expert Advice

B. Patrick Agnew

A personal injury attorney in Forest, Va

Q: How important is it to check an insurer’s claims handling reputation?

“I often see clients struggle with denials or delays from providers known for poor claims handling. The time and money spent fighting improper denials can be monumental.”

Frequently asked questions

When do I need commercial auto insurance in Florida?

You’ll need business insurance for your vehicle as soon as you buy and register it with your business. If you convert a personal vehicle to a business vehicle, get commercial insurance the day you start using it for business purposes.

Is commercial auto insurance more expensive in Florida?

Florida is one of the most expensive states for personal and commercial auto insurance. The average monthly cost of personal auto coverage in Florida is $224, according to Insurance.com rate data. Compare that to $266, the monthly average cost of commercial vehicle insurance in the Sunshine State.

Is Florida commercial car insurance tax deductible?

The IRS considers any “ordinary and necessary” business expense to be tax-deductible on your federal return, including premiums for most types of commercial insurance, such as automobile coverage. Note that Florida does not have a state income tax.