Commercial auto insurance in New York

What is commercial auto insurance in New York?

Commercial auto insurance is a form of vehicle insurance designed to meet the unique needs of businesses, whether you operate a long-haul trucking firm in Queens or an IT consulting firm in Rochester. It is intended to cover bodily injury and property damage claims from an accident involving company-operated vehicles. Commercial auto insurance is necessary because personal auto insurance will not cover accidents that happen in the course of doing business.

Is commercial auto insurance required in New York?

Commercial auto insurance is required by law in New York. This means that your business vehicles must meet the state’s minimum liability coverage requirements, which experts say are rarely sufficient to cover the costs associated with a major accident. Liability insurance does not cover damage to your own vehicles; for that, you will need comprehensive and collision insurance. You may also need additional forms of insurance if you operate heavy vehicles (like cement mixers or dump trucks), haul people or cargo, or cross state lines. Talk with your insurance agent or broker about your specific business insurance needs.

What does commercial auto insurance cover in New York?

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

Property damage liability. This is required by law and pays for damages you cause to another party’s vehicle or property.
Bodily injury liability. This coverage pays for injuries you or your employees are at fault for in an accident. It covers medical bills, legal expenses, loss of income and funeral expenses.
Personal injury protection. PIP pays for injuries you or your passengers incur when involved in an accident, regardless of fault.
Comprehensive coverage. This 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. This covers the cost of repairs to your vehicle when damaged in an at-fault accident, single-vehicle collision or rollover.
Uninsured and underinsured motorist insurance. This pays to fix your car when you are not at fault but the other party doesn’t have any or enough liability coverage.
Rental car coverage pays for a rental car to continue operations while your vehicle is being repaired.

Does commercial auto insurance cover personal use? 

The short answer is yes. Commercial auto insurance can cover personal use as long as the driver is listed as an additional insured on your policy and has a valid license.

For instance, let’s say the foreman of a construction business in Syracuse borrows a company vehicle to get lunch. As he’s pulling into the restaurant parking lot, he’s T-boned by another driver who wasn’t paying attention to the road, causing extensive damage to both vehicles. Because the foreman is listed on his company’s auto insurance policy, the damage will be covered even though he wasn’t using the truck for work purposes.

How much is commercial auto insurance in New York?

The average cost of commercial auto insurance in New York, as mentioned earlier, is $172 per month, exceeding the national average of $147 per month, according to Insureon. By comparison, Florida has the highest rates among the 25 most populous states, at $266 a month, while Indiana has the cheapest rate, at $101 a month.

Prices in New York depend on several factors, location being among the most important. A contractor based in the densely populated Long Island township of Hempstead, for example, will pay more for coverage than if the company was based in the small Finger Lakes town of Geneva.

Insurance companies also consider a vehicle's year, make and model. They take into account drivers’ experience and history behind the wheel. Of course, the insurance company and coverage options a business chooses also affect the price.

New York minimum coverage requirements

According to the New York Department of Motor Vehicles, all registered vehicles in the state must carry the following minimum amounts of liability insurance coverage:

$25,000 in bodily injury and $50,000 for death for a person per accident
$50,000 in bodily injury and $100,000 for death for two or more people per accident
$10,000 in property damage liability per accident

New York is a no-fault state, which means you must also have at least $50,000 in personal injury protection. PIP covers the medical expenses of drivers and passengers, regardless of fault in an accident.

You may be required to have additional coverage if you drive a vehicle with a New York state or U.S. Department of Transportation (USDOT) serial number, such as a truck that carries heavy loads. Visit the Federal Motor Carrier Safety Administration website and check your USDOT serial or docket number, or talk with your insurance broker or carrier representative to find out if you need extra insurance.

How commercial auto insurance works in New York

Commercial auto insurance works like personal auto insurance in New York. 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. Comprehensive and collision coverage may have a deductible associated with the repairs, which is the amount that you must pay before your insurance applies.

Which vehicles are covered by commercial auto insurance in New York?

A commercial auto insurance policy in New York can cover various types of vehicles. Here are some examples:

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

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

Top commercial auto insurance companies

The following insurers are among those offering commercial auto insurance in most or all states:

Allstate
Berkshire Hathaway Guard
BiBerk
Erie
GEICO
Liberty Mutual
Nationwide
NJM
Progressive
State Farm

Insurance.com has a list of what it found to be the top commercial auto insurance companies.

To make sure you’re working with the best insurance company for your needs, experts say to shop around. They advise getting quotes from at least three insurers.

Before committing to a policy, check out the company’s J.D. Power customer and claims satisfaction rankings and AM Best financial stability ratings. You don’t want to file a claim only to wait weeks for it to be resolved or discover your insurer is on unsound financial footing.

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:

Intentional damage
Damage from pollutants
Injuries covered by workers’ compensation

Can I add coverage to my commercial auto policy?

Small businesses can add a number of add-ons to their policies, according to Insureon, including:

Roadside assistance
New vehicle replacement cost
Expanded towing coverage
Rental reimbursement

How to buy commercial auto insurance in New York

Getting commercial auto insurance in New York is easy when you know what to expect. Start by gathering quotes from at least three reputable insurance providers to compare pricing and coverage. While many companies offer online estimates, some may require you to speak directly with a licensed agent.

To receive an accurate quote, you’ll typically need to provide:

Names, license numbers and driving records of all employees who operate business vehicles
Details about each vehicle, including year, make, model and VIN
How each vehicle is used, such as for food deliveries in Queens, client meetings in Albany, or transporting tools in Buffalo
An estimate of the annual mileage business vehicles are driven
The physical location of your business
Your preferred coverage types and policy limits

Keep in mind that the initial quote is only a ballpark figure. Your final premium will be determined after the insurer reviews your full application and verifies the information. For the best outcome, consider working with a New York-based broker who specializes in commercial policies and understands the unique challenges of local businesses.

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 New York?

Much like personal auto insurance, your business vehicles – whether owned, rented or leased – must meet New York’s minimum-coverage liability requirements to drive legally. If you or your employees drive to and from job sites, visit clients, haul cargo or people for hire, or use your vehicle to provide a service, you will need commercial auto insurance. You must also have commercial auto insurance if you use a personal vehicle for business purposes.

Is commercial auto insurance more expensive in New York?

According to rate data from Insurance.com, the average monthly cost of personal auto insurance in New York is $156 per month. Compare that to the average cost of commercial auto coverage, which is $172 monthly.

Is New York commercial car insurance tax-deductible?

The IRS allows businesses to deduct “ordinary and necessary” expenses on their income taxes, including premiums paid for most forms of commercial insurance. Keep all premium bills to provide to your tax advisor to deduct this expense properly on federal and state returns. (Ask your advisor about whether this may also be deducted from local taxes.