Commercial auto insurance in Illinois

Do I need commercial auto insurance in Illinois? 

If you use a vehicle for work purposes, commercial auto insurance is required in Illinois.  

In Illinois, you need commercial auto when vehicles are titled to the business or regularly used to transport people, tools or goods for work purposes. 

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. 

Here are questions to review to determine if you need commercial auto insurance in Illinois. 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)?  
• Are my vehicles used in interstate or intrastate commerce to move passengers or property, and do they meet Illinois commercial motor vehicle weight or passenger thresholds? If so, you will need a commercial policy and may face higher liability and filing requirements. 

What are the minimum requirements for commercial auto insurance in Illinois? 

Illinois requires at least 25/50/20 liability and 25/50 uninsured motorist coverage on most vehicles, with higher limits and federal or state filings often required for commercial carriers and for-hire operations.  

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. 

What does commercial auto insurance in Illinois cost? 

The average cost of commercial auto insurance in Illinois is $128, or $1,536, according to data from small business insurance agency Insureon. 

What factors affect commercial auto insurance costs in Illinois? 

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 Chicago and Rockford may see higher rates than more urban areas. 

Who are the top commercial auto insurers in Illinois? 

These commercial auto insurance companies offer availability in Illinois, solid financial strength and policy options for a wide range of commercial vehicles.  

Allstate 

Why it’s a strong option in Illinois: 
Over 50 Allstate agents in Illinois can help companies customize commercial auto insurance policies 

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 Illinois: 
Local agents understand the needs of Illinois business owners and can help you customize a policy  

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 Illinois: 
Liberty Mutual agents in Illinois can offer advice on how to  build a robust policy for more protection 
 
Highlights: 

• A (Excellent) AM Best financial strength rating 
• Comprehensive tools for commercial auto claims management 

Nationwide  

Why it’s a strong option in Illinois: 
Nationwide’s Illinois network of nearly 50 agents ensures you’ll find one ready to design the right policy for your company 
 
Highlights: 

• A (Excellent) AM Best financial strength rating 
• Strong bundling options for discounts 

Progressive  

Why it’s a strong option in Illinois: 

• 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 Illinois: 
From Chicago to Springfield, State Farm's Illinois agents are available to help tailor your policy to your particular 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 

Acuity

Why it’s a strong option in Illinois: 

• Offers free OSHA 10-hour training for groups of 15 or more. 
• A local Acuity  independent agent in Illinois can help you customize a policy for your needs  

Highlights: 

• A+ (Superior) AM Best financial strength rating  
   Broad range of optional coverage types, including  auto enhancements and extra expense 

How can I get commercial auto insurance in Illinois? 

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 Illinois’ 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. 

What types of vehicles are covered under commercial auto insurance in Illinois? 

Illinois commercial auto coverage is commonly used for contractor trucks, municipal service vehicles, local freight haulers, snowplows and other business-use vehicles. 

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.  

What does commercial auto insurance in Illinois 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 Illinois: 

• 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 Illinois 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?

B. Patrick Agnew A personal injury attorney in Forest, Va.

"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."