- Do I need commercial auto insurance in Georgia?
- What are the minimum requirements for commercial auto insurance in Georgia?
- What does commercial auto insurance in Georgia cost?
- Who are the top commercial auto insurers in Georgia?
- How can I get commercial auto insurance in Georgia?
- What types of vehicles are covered under commercial auto insurance in Georgia?
- What does commercial auto insurance in Georgia cover?
- What does commercial auto insurance in Georgia not cover?
- What our expert says
- Frequently asked questions (FAQs): Commercial auto insurance in Georgia
Do I need commercial auto insurance in Georgia?
Yes, commercial auto insurance is required in Georgia if your vehicle is used for work purposes.
In Georgia, businesses need commercial auto when vehicles are used to move equipment, materials or passengers for work rather than personal commuting.
If your business vehicle is a typical sedan, pickup or van, the commercial auto insurance you’ll need closely resembles a personal auto policy. The commercial policy is needed because your work vehicle has higher risks (driven more, multiple drivers, etc.) than your personal car.
Expert Insight
Weight and cargo impact risk, and it’s wise to carry coverage limits that appropriately reflect the risks. For example, if you haul equipment, higher liability limits often apply to certain weights in New Jersey.
Here are some questions that can help you determine whether you need to buy Georgia commercial auto insurance. If you answer yes to any of them, you likely need a business or commercial auto policy.
- Is my car used regularly for work activities?
- Do I use my vehicle for deliveries, transporting people or goods?
- Do my employees or I use the vehicle often for business purposes?
- Are there multiple drivers (employees or contractors) operating the vehicle?
- Do I drive to meet clients as part of my business?
- Do I carry passengers for business reasons (clients, employees or rideshare work)?
- Is the vehicle titled, leased or registered under the company’s name?
- Do I already hold other business insurance policies (such as general liability or workers’ comp)?
- Are my work vehicles over key GVWR thresholds, over 26,000 pounds combined, or used to carry 16 or more passengers or hazardous materials? Those conditions often trigger commercial motor vehicle status and higher liability requirements.
What are the minimum requirements for commercial auto insurance in Georgia?
Georgia requires at least 25/50/25 liability on most vehicles, but larger intrastate and interstate carriers often must carry higher limits under Georgia and FMCSA rules based on weight, passengers and cargo.
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: cars, pick up trucks and standard vans |
Liability: 25/50/25 which stands for: $25,000 per person of bodily injury liability $50,000 per accident of bodily injury liability $25,000 per accident of property damage liability Uninsured motorist matching liability limits must be offered but can be rejected. |
What does commercial auto insurance in Georgia cost?
The average cost of commercial auto insurance in Georgia is $236, or $2,832, according to data from small business insurance agency Insureon.
What factors affect commercial auto insurance costs in Georgia?
Commercial auto insurance costs are influenced by many risk factors. Common rating factors looked at by insurers include:
- Driver history: Clean driving records help lower premiums.
- Vehicle type & use: Heavy-duty trucks and long-haul vehicles cost more to insure than a standard pickup truck.
- Annual mileage: More miles driven per year result in higher rates as insurers see it as your vehicle has more of a chance of being in an accident.
- Location: Urban areas like Atlanta and Augusta may see higher premiums due to more congestion and a higher likelihood of crashes.
- Business industry: High-risk industries, like construction or trucking, pay more than a small local delivery van.
- Claims history: Prior claims can increase rates.
- Chosen coverage and limits: More coverage and lower deductibles will increase premiums.
People ask
If I am the only driver of a car for business purposes, like driving clients around, should I buy a commercial auto policy in Georgia?
Yes, even if you are the only one operating the vehicle, you need a commercial auto policy in Georgia because you’re using it for business purposes. Insurers won’t allow a personal auto policy to cover a work vehicle because work vehicles pose higher risks.
Who are the top commercial auto insurers in Georgia?
These commercial auto insurance companies offer availability in Georgia, solid financial strength and policy options for a wide range of commercial vehicles.
Allstate
Why it’s a strong option in Georgia:
From Atlanta to Savannah, business owners can count on Allstate agents for customized coverage
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 Georgia:
You can access GEICO's affordable commercial auto programs online or connect with one of the state's many local agents
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 Georgia:
Liberty Mutual's statewide agent network provides the support you need when making complex policy decisions
Highlights:
- A (Excellent) AM Best financial strength rating
- Comprehensive tools for commercial auto claims management
Nationwide
Why it’s a strong option in Georgia:
With 20+ Nationwide agents throughout Georgia, you can connect for personalized service
Highlights:
- A (Excellent) AM Best financial strength rating
- Strong bundling options for discounts
Progressive
Why it’s a strong option in Georgia:
- 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 Georgia:
State Farm’s Georgia agent network ensures you’ll always have someone nearby to help tailor your auto policy to your company's needs
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
Kemper
Why it’s a strong option in Georgia:
- Offers commercial auto insurance to over 6,000 occupations
- Regional insurer with independent agents available in Georgia to give you personalized service
Highlights:
- A- (Excellent) AM Best financial strength rating
How can I get commercial auto insurance in Georgia?
You’ve got options on how to buy commercial auto insurance. You can do it online, over the phone or by visiting an agent at an office. Once you know your business needs a commercial policy, here are the next steps to take:
- Figure out your coverage needs. Decide if Georgia minimum requirements are right for your needs or if you need more. An agent can help you sort out what coverage, limits and deductibles fit your needs.
- Collect information to get accurate quotes. Gather together:
- Your business information
- Driver details (how many, driver license numbers and driving histories)
- Vehicles information (VIN, GVWR, usage, and annual mileage)
- Past claims history
3. Shop around. Because insurance providers calculate risks differently, shopping around can help you save. You’re looking for the company offering you the best coverage at the best price.
4. Purchase your policy. Once you’ve found the insurer providing the right mix of price and coverage, it’s time to buy the policy. 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 Georgia?
Covering your business vehicles can be costly, but decisive planning and smart shopping can help you secure the best rates. Here are some tips to get better rates for commercial auto insurance.
- Comparison shop. Insurance companies set their own rates and weigh risk factors differently. That means your location could drive up your rates at one insurer but not another. To find the best fit for your needs, it’s wise to get quotes from at least three companies.
- Bundle business coverage. Begin your comparison shopping journey with the company your business owners' policy (BOP) is with and ask about bundling discounts.
- Try out telematics. If you don’t mind an insurance company tracking your vehicles, you may be able to save with a telematics program. For instance, Progressive has a “SmartHaul” program for truckers who share their electronic logging device data. If they show a pattern of good driving behavior, a discount can be earned of 15% or more.
- Contact an agent. Reach out to an agent to ask about ways to save. Commercial auto insurance agents can answer questions on coverage types that may be helpful to your business, and tell you about discounts to look for.
What types of vehicles are covered under commercial auto insurance in Georgia?
Georgia commercial auto policies commonly insure contractor pickups, plumbing and HVAC vans, farm trucks, church buses and local delivery vehicles that travel both rural roads and metro areas.
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 | - Rideshare endorsement - Hired and non-owned auto (HNOA) if employee-owned |
| Pickup truck | Construction, landscaping, hauling materials | - Inland marine - Higher coverage limits, depending on load weight |
| Passenger van | Shuttle services, daycares | - Higher liability limits - Possible endorsements depending on who is transported |
| Flatbed truck | Construction materials, hauling equipment | - Cargo coverage - Motor carrier/truck policy, depending on weight - Higher liability limits |
| Service/utility truck | Electrical, HVAC, maintenance, pest control, plumbing, | Specialised tow-truck commercial coverage Coverage for customers’ vehicles |
| Tow truck | Towing, roadside assistance | - Specialised tow-truck commercial coverage - Coverage for customers’ vehicles |
| Food truck | Food service | - Equipment coverage - General liability - Workers’ comp |
| Box truck | Moving companies, furniture delivery | - Cargo insurance |
| Heavy truck (>26,000 lb) | Freight transport, long-haul trucking | - Higher liability limits - Cargo coverage - Motor carrier coverage |
What does commercial auto insurance in Georgia cover?
Commercial auto insurance coverage is based on the options you select at purchase. Some coverage types are required, while others are optional and can be added to customize the policy to match your needs.
These coverages are required in Georgia:
- 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 Georgia not cover?
While commercial auto insurance is broad in scope, it doesn’t cover every type of loss. Some notable exclusions are:
- Theft, damage or destruction of company inventory or equipment (typically covered by commercial property insurance policy)
- Employee illnesses or Injuries covered by workers’ compensation
- Accidents caused by employee drivers while intoxicated
- Damage or destruction from pollutants
- Intentional damage
What our expert says
Q: What factors do insurers use to determine commercial auto rates?
Frequently asked questions (FAQs): Commercial auto insurance in Georgia
What is considered a commercial vehicle in Georgia?
Commercial vehicles are defined as vehicles weighing 10,001 pounds or more, according to Georgia law.
Can I use my personal vehicle for business in Georgia?
You can use your personal vehicle for business in Georgia, but you will need a commercial auto policy and possibly a hired and non-owned auto (HNOA) endorsement.
Is commercial auto insurance required in Georgia?
Yes, if you use a vehicle or fleet for business purposes, Georgia law mandates commercial auto insurance.
Is commercial car insurance tax deductible in Georgia?
Commercial car insurance premiums are tax-deductible in Georgia. Keep all premium bills to properly deduct this expense.
