Commercial auto insurance in New Jersey

Do I need commercial auto insurance in New Jersey?

Yes, whether you have a business-use sedan or a fleet of vehicles, if you use a vehicle for work purposes, commercial auto insurance is required in New Jersey. The weight of your work vehicle(s) will determine the liability limits your commercial auto policy must include.

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 Insight

It’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 New Jersey. 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 weigh over 10,000 pounds GVWR? Not only do you need a commercial policy, but this triggers higher liability limits in New Jersey.

What are the minimum requirements for commercial auto insurance in New Jersey?

New Jersey requires at least 35/70/25 liability coverage plus matching uninsured/underinsured motorist limits for many small business vehicles. The type of vehicle your business uses determines the minimum amount of commercial auto insurance it will need in New Jersey.

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.

Type of vehicle	Minimum insurance requirements
Light commercial vehicles under 10,000 lbs GVWR, such as: Cars Pickup trucks Standard vans	Liability: 35/70/25, which stands for: $35,000 per person of bodily injury liability $70,000 per accident of bodily injury liability $25,000 per accident of property damage liability Uninsured/underinsured motorist limits: 35/70/25 Personal injury protection (PIP): $15,000 per accident
Medium commercial vehicles 10,001 to 26,000 lbs GVWR, such as: Flatbed trucks Box trucks Medium-duty delivery Cargo vans	Liability: a combined limit of $300,000 for bodily injury and property damage per accident Uninsured/underinsured motorist insurance: 35/70/25 Personal injury protection (PIP): $15,000 per accident
Heavy commercial vehicles 26,001 lbs or more GVWR, such as: Large delivery trucks Tractor-trailers Construction vehicles Box trucks	Liability: a combined limit of $1.5 million for bodily injury and property damage per accident Uninsured/underinsured motorist insurance: 35/70/25 Personal injury protection (PIP): $15,000 per accident
Source: New Jersey Department of Banking & Insurance, 2025

At the federal level, if you operate an interstate motor carrier the Federal Motor Carrier Safety Administration (FMCSA) dictates what commercial auto insurance you should have beyond any state requirements.

What does commercial auto insurance in New Jersey cost?

The average cost of commercial auto insurance in New Jersey is $263 a month, or $3,156 per year, according to data from small business insurance agency Insureon.

What factors affect commercial auto insurance costs in New Jersey?

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 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 Newark and Jersey City 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 New Jersey?

Yes, even if you own only one work van, you’ll need a commercial auto policy in New Jersey. 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 New Jersey?

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