Commercial auto insurance in Pennsylvania

Do I need commercial auto insurance in Pennsylvania?

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 Pennsylvania.

In Pennsylvania, businesses need commercial auto when vehicles are titled to the company or regularly used to move people, tools or goods for work.

If you’re driving a standard-size sedan, pickup or van for work, the mandated commercial auto insurance policy will be a lot like a personal auto policy. Your business-use vehicle brings different risks than your personal car, which is why a commercial policy is required.

Expert InsightDon’t make the mistake of assuming your personal auto policy will cover even occasional business use. This incorrect assumption could mean a financially devastating mistake. If the vehicle is used, even briefly, for business purposes, make sure you have commercial auto coverage.

Here are questions to review to help you decide if you need commercial auto insurance. You’ll usually need a Pennsylvania commercial or business policy if you answer yes to any of these items.

Is the vehicle owned, leased or registered in the company’s name?
Do I use my vehicle for deliveries, transporting goods or people?
Do I use my vehicle to visit clients?
Do my employees or I regularly use the vehicle for business purposes?
Do multiple drivers, such as employees or contractors, drive the vehicle?
Do I carry passengers in the vehicle for business reasons (employees, clients, or rideshare work)?
Do I already carry general liability, workers’ comp or other business insurance policies?
Do my vehicles meet Pennsylvania’s commercial motor vehicle weight thresholds or haul paying passengers or cargo as part of a business? If so, I will need a commercial policy and may be subject to higher liability and no-fault requirements.

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

Pennsylvania requires at least 15/30/5 liability and $5,000 of medical benefits on most vehicles, with higher requirements for certain commercial trucks, buses 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.

Type of vehicle	Minimum insurance requirements
Standard registered vehicles, such as: cars, pick up trucks and standard vans	Liability: 15/30/5 which stands for: $15,000 per person of bodily injury liability $30,000 per accident of bodily injury liability $5,000 per accident of property damage liability PIP (first-party benefits): $5,000 Uninsured motorist matching liability limits must be offered but can be rejected.
Property carriers with a GVWR of 10,000 pounds or less	Liability: a combined single limit of $300,000 for bodily injury and property damage per accident
Property carriers with a GVWR of over 10,000 pounds	Liability: a combined single limit of $750,000 for bodily injury and property damage per accident
Passenger carriers	15 passengers or less: 15/30/5 liability and PIP of $5,000 16 to 28 passengers: $1 million liability combined single limit for bodily injury and property damage per accident 29 or more passengers: $5 million liability combined single limit for bodily injury and property damage per accident

What does commercial auto insurance in Pennsylvania cost?

The average cost of commercial auto insurance in Pennsylvania is $168, or $2,016, according to data from small business insurance agency Insureon.

What factors affect commercial auto insurance costs in Pennsylvania?

Commercial vehicle insurance costs vary based on risk factors, such as:

Vehicle type, value and use
Number of vehicles insured
Coverage types chosen
Selected policy limits and deductibles
Business’s claim history
Industry risks (type of business and type of cargo)
Driving history of drivers
Location
Mileage (operating radius)

People ask

Does personal auto insurance cover a vehicle if I use it for work or deliveries in Pennsylvania?

No, a personal auto insurance policy won’t cover a vehicle you use for work or deliveries in Pennsylvania. You need a commercial auto insurance policy because a work vehicle has different risks than a personal vehicle.

Who are the top commercial auto insurers in Pennsylvania?

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

Allstate

Why it’s a strong option in Pennsylvania:
Allstate agents across Pennsylvania specialize in customizing commercial auto insurance

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 Pennsylvania:
Easy to connect with agents online (or local agents in Erie, Pittsburgh, Philadelphia and Harrisburg) to lend advice during the buying process

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 Pennsylvania:
Across Pennsylvania, Liberty Mutual helps businesses craft auto policies that fit their operations

Highlights:

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

Nationwide

Why it’s a strong option in Pennsylvania:
Over 50 commercial agents service Pennsylvania to guide businesses seeking the right auto policy

Highlights:

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

Progressive

Why it’s a strong option in Pennsylvania:

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 Pennsylvania:
State Farm’s Pennsylvania agents provide local insight to help craft commercial auto policies that fit your company

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

Erie

Why it’s a strong option in Pennsylvania:

Erie's "Business Auto Enhancement" packages together coverage options so you can save
Regional insurer has helpful local agents to give guidance on how to build the best policy

Highlights:

A (Excellent) AM Best financial strength rating
Provides extra coverage at no extra cost, plus offers a wide range of optional coverage to add on

How can I get commercial auto insurance in Pennsylvania?

Commercial auto insurance can be purchased online, by phone or directly at an insurance office. After determining your business requires a commercial policy, the next steps in the buying process include:

Step 1: Assess your needs. Review Pennsylvania minimum coverage requirements for the vehicles you need to insure. Decide if those limits are sufficient or if higher ones are better for your needs. If unsure of your needs, ask an agent to guide you through coverage, limits and deductible options.

Step 2: Gather the information you’ll need to get quotes. This typically includes:

Business details
- Past claims history
- Vehicle specifics (VIN, GVWR, use, and annual mileage)
- Driver information (number of employee drivers, driver license numbers and driving histories)

Step 3: Comparison shop for quotes. Each insurer weighs risk factors differently, so request quotes from several companies to find the one that matches your needs the best.

Step 4: Purchase your policy. Once you’ve selected the right coverage and shopped around you should feel confident about buying your commercial auto policy. Most insurers activate coverage within 24 to 48 hours after receiving the required documents.

Expert tips: How can I get better rates for commercial auto insurance in Pennsylvania?

Commercial auto insurance is a must for Pennsylvania businesses, but you can try to keep costs down by following these expert tips on how to get better rates:

Shop around. The best way to get the best rates is to shop around. Each company sets its own rates and weighs rating factors differently, so where you are located may cause higher rates with some insurers, but not others. Online comparison tools make gathering multiple quotes quick and easy.
Ask for discounts. While shopping around, ask agents about possible discounts, like bundling your commercial auto policy with a BOP or general liability policy (other discounts are paid in full.
Maintain good driving records. Safe driving records for employee drivers can help you get lower premiums.
Increase deductibles. Collision and comprehensive coverage come with deductibles, an amount that reduces your insurance claim payout. A higher deductible will reduce your premium for these coverage types.

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

Pennsylvania commercial auto coverage is commonly used for contractor vans, local delivery trucks, snow-removal rigs and other vehicles that support day-to-day business operations.

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 Pennsylvania cover?

What commercial auto insurance covers is determined by the types of cover you select when purchasing your policy. Certain coverage is required by state law, while additional optional coverage can be included to customize your policy to your specific needs.

Coverages required in Pennsylvania include:

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.
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 adding them could give your vehicles extra protection that you want:

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 Pennsylvania not cover?

Commercial auto insurance provides broad coverage, but it doesn’t extend to every type of loss. Here are common exclusions to be aware of:

Employee illnesses or Injuries covered by workers’ compensation
Accidents caused by employee drivers while intoxicated
Intentional damage
Damage or destruction from pollutants
Theft, damage or destruction of company inventory or equipment (typically covered by commercial property insurance policy)

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 (FAQs): Commercial auto insurance in Pennsylvania

Is commercial auto insurance required in Pennsylvania?

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

What is considered a commercial vehicle in Pennsylvania?

In Pennsylvania, a commercial vehicle is any type of motor vehicle used for transporting goods or passengers for compensation.

Is Pennsylvania commercial car insurance tax deductible?

Commercial car insurance premiums are tax-deductible in Pennsylvania. Keep all premium bills to properly deduct this expense.

Can I use my personal vehicle for business in Pennsylvania?

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