Commercial auto insurance in Pennsylvania 

What is commercial auto insurance? 

Commercial auto insurance covers vehicles used for business purposes such as deliveries and on-location services. It is necessary because personal auto insurance will not cover accidents that happen in the course of business.  

Because a commercial vehicle is often on the road for the duration of the business day and not just commuting to an office, commercial vehicle insurance is usually more expensive than personal insurance due to the added risk. 

Do I need commercial auto insurance in Pennsylvania? 

Commercial auto insurance is required in Pennsylvania. This means that your business vehicles must carry the state minimum liability coverage. It may be wise to carry more coverage; businesses are often at risk of lawsuits since people assume businesses have deep pockets. Having more coverage can prevent the business from absorbing the cost of these lawsuits and settlements.  

In addition, you may want to get collision or comprehensive coverage for the vehicle itself. Collision pays to repair or replace a vehicle after an accident involving an object or another vehicle, while comprehensive covers damage from non-collision events, such as hail.  

Types of vehicles covered under commercial auto insurance in Pennsylvania

Various types of vehicles can be covered by a commercial auto insurance policy. Here are some examples: 

• Cars to visit or transport clients
• Commercial cargo vans
• Commercial trucks such as dump trucks and tractor-trailers  
• Pickup trucks
• Box trucks 
• Service utility trucks

How much is commercial auto insurance in Pennsylvania? 

Commercial auto insurance in the U.S. is about $147 a month, according to insurance agency Insureon, but prices in Pennsylvania are contingent on several factors. Insurance companies consider a vehicle's year, make and model. It will also consider the location of the vehicle’s home base. Insurers also take into account drivers’ experience and history behind the wheel. And, of course, the insurance company and coverage options a business chooses also affect the price.  

How does commercial auto insurance work in Pennsylvania? 

Commercial auto insurance works like personal auto insurance in Pennsylvania. 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. Both comprehensive and collision coverage may have a deductible associated with the repairs, which is your portion of the cost of fixing the vehicle.   

Top commercial auto insurance companies 

Commercial auto insurance companies are licensed by each state. It is wise to shop around for the best commercial auto insurance and look for the cheapest rates. Several national carriers offer insurance in most states, including: 

Allstate 

Allstate agents work in local cities to  advise business owners of the risks associated with commercial vehicles and how to protect themselves. The agent is the point of contact for the business owner and is there to answer all questions and start the claims process if necessary.  

Geico 

Geico is a national insurance carrier that is well-versed in commercial vehicle insurance. Business owners can get a quote by visiting the Geico website or calling the toll-free number. Representatives are there to help answer any questions and bind the coverage you need. No agent is assigned when you work with Geico, so you’ll speak with a different person whenever you call in for service or a claim.  

Liberty Mutual 

Liberty Mutual uses a network of independent agents and brokers to write its commercial auto insurance policies. This means that you’ll have a local agent assigned to your policy who is there to answer any questions you may have. The Liberty Mutual website has an agent locator tool to help you find one nearby.  

Nationwide 

Nationwide agents are available to answer any questions you have and write the commercial auto insurance policy for you. Your agent stays with you for the life of the policy, though you can change the agent of record for any reason if you choose. It takes approximately 10 minutes to get a custom quote for your business vehicles.  

Progressive 

Progressive is the top insurance carrier for commercial auto policies. The company insures more commercial vehicles than any other company. You can get a Progressive quote by visiting its website and requesting a quote or calling the toll-free number. Progressive won’t assign an agent to your policy; you’ll work with a different representative every time you call.  

State Farm 

State Farm offers commercial auto insurance policies for most types of delivery trucks, box trucks and vehicles. You work with a local agent in your local city to get a quote and remain with that agent for the duration of the policy. The agent is there as a partner to advise you on the right coverages for your business and help you identify ways to save money.  

What does commercial auto insurance cover in Pennsylvania? 

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

• Property damage liability: This is required by law and pays for damages you cause to another party’s vehicle or property. 
• Bodily injury liability coverage: Pays for injuries you are at fault for in an accident. It covers medical bills, legal expenses, loss of income and funeral expenses.
• Personal injury protection (PIP) or medical payments: This pays for injuries you or your passengers incur when involved in an accident, regardless of fault.
• Comprehensive coverage: This will cover 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 will cover the cost of repairs to your vehicle when damaged in an at-fault accident, single-vehicle collision or rollover.
• Uninsured and underinsured motorist: 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: This pays for a rental car to continue operations while your vehicle is being repaired.  

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 

How to buy commercial auto insurance in Pennsylvania

When buying commercial auto insurance in Pennsylvania, you’ll want to find an agent licensed in the state. This person can answer questions about state requirements, provide a quote and help bind an insurance policy.  

To buy commercial auto insurance, you’ll need to have some information readily available for the agent. This information includes the vehicle’s information, including the VIN, annual miles driven and the year, make and model of the vehicle. You’ll also need information about your drivers, including their driver’s license numbers and accident/ticket histories.  

If you are shopping for the best rates, have a copy of the coverages other insurance carriers offered you to compare similar quotes. Once you have the quote, the agent can bind the coverage by taking the first payment.  

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.”