Commercial auto insurance in New York

Do I need commercial auto insurance in New York?

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

In New York, a commercial policy is generally needed when vehicles are used in business, especially if they carry people or goods for a fee or display commercial plates.

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 York. 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)?
Is the vehicle registered with commercial plates, used to transport passengers or property for business? If yes, New York typically requires commercial auto coverage with no-fault PIP benefits.

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

New York requires at least 25/50/10 liability, uninsured motorist coverage of 25/50, and PIP of $50,000 on most vehicles, with additional, and often higher, requirements for for-hire vehicles and trucking 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.

Type of vehicle	Minimum insurance requirements
Standard registered vehicles, such as: cars, pick up trucks and standard vans	Liability: 25/50/10 which stands for: $25,000 per person of bodily injury liability $50,000 per accident of bodily injury liability $10,000 per accident of property damage liability Uninsured motorist limits: 25/50 PIP: $50,000

What does commercial auto insurance in New York cost?

The average cost of commercial auto insurance in New York is $172, or $2,064, according to data from small business insurance agency Insureon.

What factors affect commercial auto insurance costs in New York?

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 New York and Albany 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 York?

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

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

Allstate

Why it’s a strong option in New York:

With over 50 licensed Allstate agents spread across New York state, it's easy to get personalized guidance

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 New York:

From Albany to New York City to Rochester, you can seek out an agent for help tailoring a policy to your needs

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 New York:
With agents throughout the Empire State, Liberty Mutual helps businesses design the right auto insurance policy.

Highlights:

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

Nationwide

Why it’s a strong option in New York:

With a strong presence across New York, Nationwide connects you with local agents for customized coverage

Highlights:

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

Progressive

Why it’s a strong option in New York:

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 New York:

State Farm will pair you with a New York agent to craft auto insurance for your business vehicles' 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 .

Utica

Why it’s a strong option in New York:

Provides commercial insurance for over 250 types of businesses, from auto dealers to craft breweries and retailers
A regional insurance company with local independent agents to help you build a policy to fit your current needs

Highlights:

A (Excellent) AM Best financial strength rating

How can I get commercial auto insurance in New York?

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:

Determine your needs. Be aware of New York’s 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.
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
Compare quotes. Insurance companies rate risks differently, so make sure to shop around with multiple commercial auto insurance companies.
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.

How can I get better rates for commercial auto insurance in New York?Commercial auto insurance is a necessary expense for New York businesses. Here are some expert tips and strategies to help you get lower prices on your policy.

Bundle. Start shopping with the insurer you already have your business owners policy (BOP) through, and ask about bundling discounts for buying both policies with the same company.
Shop around. Each company sets its own rates and weights rating factors differently, so your location may result in higher rates with some insurers but not others. Or the type of vehicles may be expensive with one insurer and decently priced with another. We recommend getting quotes from at least three different companies. Comparison shopping online makes it easier to get multiple quotes.
Ask for discounts. While shopping around, ask agents about possible discounts you may qualify for.
Adjust your coverage, limits or deductible. Make sure you don’t have any unnecessary coverage, that your limits make sense for your needs, and see if you can increase your deductible to one you can still afford, which would lower your rates.

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

New York commercial auto coverage can apply to contractors’ trucks, livery vehicles, taxis and for-hire cars, small delivery fleets and service vehicles operating both in the five boroughs and upstate.

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,	- Inland marine - Trailer or attached equipment endorsements
Tow truck	Towing, roadside assistance	- Specialized 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 New York 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 New York:

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.
Uninsured and underinsured motorist (UI/UM): Pays for your injuries and property damage (up to your limits) when another driver is at fault but doesn’t have insurance or not enough liability insurance to cover your medical expenses.
Personal injury protection (PIP) or medical payments: Pays for injuries you or your passengers incur when involved in an accident, regardless of fault.

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 New York 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

Frequently asked questions (FAQs): Commercial auto insurance in New York

Is commercial auto insurance required in New York?

Yes, if you use a vehicle or fleet for business purposes, Indiana law mandates commercial auto insurance.

Can I use my personal vehicle for business in New York?

You can use your personal vehicle for business in New York, but you will need a commercial auto policy and possibly a hired and non-owned auto (HNOA) endorsement.

What is considered a commercial vehicle in New York?

New York State's definition of a commercial motor vehicle closely aligns with the FMCSA federal definition. Here, a vehicle designed or used to transport passengers or property, which has a GVWR of over 26,000, or is designed to transport 15 or more passengers, or is a bus, or of any size other than a farm vehicle that transports hazardous materials, is considered a commercial motor vehicle.

Of note, trucks and commercial vehicles are two distinct vehicle classifications in New York City. A truck is defined as any vehicle or combination of vehicles designed for the transportation of property that has two axles and six tires or three or more axles. Commercial vehicles are defined in NYC, for purposes other than parking, stopping, or standing, as vehicles designed, maintained, or used primarily for transporting property or for commercial services and that have commercial plates.