How much is commercial auto insurance?

What does commercial auto insurance cost per month?

The average cost of commercial auto insurance is $147 per month, according to Insureon, a small-business insurance broker. The average cost of commercial auto insurance can vary significantly by your insurance company, your vehicles, your business industry, and your chosen coverage.

Insureon shares that among its small business customers, 37% pay less than $100 per month, another 37% pay over $200 per month, and the remaining 26% pay between $100 and $200 per month.

Here are other company-specific rates we have found:

Progressive: The average commercial auto insurance cost per month is $282.
The Hartford: Small business owners pay an average of $574 per month.

Expert insight: Comparing rates from various commercial insurance companies is crucial to finding the best low-cost commercial auto insurance. Getting quotes from three to five commercial insurers can help determine which companies have the best rates for your unique needs.

Why are commercial auto insurance rates going up?

Higher minimum liability limits, lawsuits, severity of claims, inflation and difficulty finding experienced drivers all contribute to rising commercial auto insurance rates.

If you’ve been buying commercial auto insurance for a while, it may come as no surprise that commercial auto insurance prices increased by an average of 10.4% in the first quarter of 2025. This is the 55th consecutive quarterly increase, according to a market survey by The Council of Insurance Agents & Brokers (CIAB), an industry group.

Several factors are influencing the rate increase, including:

Third-party litigation. This is when a third party, like a hedge fund, provides financing for lawsuits on behalf of the plaintiff in exchange for a cut of the settlement. This leads to more and larger settlements, CIAB says, and results in higher premium costs and lower coverage limits.
Higher repair costs. Vehicles are more technologically advanced, which makes them more expensive to repair after an accident. More labor hours are needed to do repairs such as recalibrating cameras and sensors.
Higher medical costs. Medical expenses are rising, driving up medical claim costs. Higher claim payouts are passed along to insurance customers in the form of higher premiums.
Inflation. While inflation has slowed, prices for car parts have remained high, and supply chain issues haven’t helped with items like computer chips that are now commonplace in vehicles’ tech.
Lack of experienced drivers. Companies are having trouble finding experienced and qualified truck drivers to replace those who are retiring or resigning.
Distracted driving. With drivers more likely to be distracted on the road, the chance of an accident is higher. Travelers 2024 Risk Index found that 64% of surveyed companies worried that employee distraction could lead to business liabilities.
Higher state minimum insurance requirements. A few states have increased the minimum liability limits drivers must have, and higher limits usually increase what you pay. For example, California recently doubled its commercial auto insurance liability minimums.

Though industry factors that contribute to premium increases aren’t always in the business owner's control, understanding the cause can help you better evaluate your company and coverage choices when getting quotes for a new policy or receiving a renewal notice for your current auto insurance policy.

Commercial auto insurance costs by business type or industry

Industries with higher risks will see higher commercial auto insurance costs than businesses with lower risk. For instance, a real estate agent typically pays less than a landscaper because the agent usually drives a smaller vehicle and doesn’t haul around tools as a landscaper does.

Basically, the more likely you are to file a claim and the higher risk your business is, the more you’ll pay for a commercial auto policy.

Here are some sample average monthly commercial auto insurance costs by business type, according to Insureon:

Industry/business type	Average cost per month
Automobile services	$76
Building design	$135
Consulting	$146
Nonprofits	$151
Real estate	$160
Professional services	$163
Food & beverage	$170
Retail	$171
Construction & contracting	$173
Cleaning services	$173
IT/technology	$198
Landscaping	$204
Installation professionals	$216
Media and advertising	$250

Commercial auto insurance costs by state

Location is another major factor insurers use to determine rates, so your cost will vary depending on the state where your business is located. Rates differ from state to state because the risk factors vary.

Some areas of the country have higher incidences of severe weather, so work vehicles are more prone to claims for damage from hail, fire, floodwaters or high winds. And states with higher rates of vehicle theft will see higher comprehensive coverage costs than states with lower risk of theft.

Below are the average annual rates in the 10 most populous states:

State	Average cost per month
California	$1,352
Texas	$2,610
Florida	$3,192
New York	$2,065
Pennsylvania	$2,012
Illinois	$1,533
Ohio	$1,326
Georgia	$2,830
North Carolina	$1,176
Michigan	$2,229

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Key factors that determine your commercial auto insurance costs

Commercial auto insurance companies review a variety of factors to determine your risk and then calculate your premium. The higher risk you appear to be, the more you’ll pay.

Here are common factors that influence your cost of commercial auto insurance:

Type of business or industry. Risk levels vary by business. For instance, a realtor typically has less risk than a delivery driver.
Type of coverage. If you add coverage to your policy, you will pay more. But the protection you add is often worth it. For example, if you’re a contractor with a permanently installed toolbox and ladder rack, you’ll want to add coverage that protects your expensive equipment.
State minimums. Each state sets minimum coverage that you must have if you buy auto insurance. Higher state limits or extra coverage being required, like uninsured motorist, means you’ll pay more than if in a state that has lower limits or mandates fewer coverage types.
Policy limits. Many business owners find that their insurance needs far exceed their state’s minimum coverage requirements to adequately protect their assets. Higher coverage limits for auto liability can help cover others' injuries and property damage your vehicle causes, plus your legal fees if you get sued. Lower limits could result in the business paying the difference, leading to financial difficulties.
Number and type of vehicles. How many vehicles you own or lease, as well as their size, type and usage, also affect your commercial car insurance premiums.
Driving records. Drivers with clean driving records can help your rates, while those with tickets or accidents are more at risk and will raise your rates.
Past claims. Claims your business previously made are factored in to see what type of risk you pose for making claims. Typically, insurers look back three to five years.

How to save on commercial auto insurance costs

Commercial auto insurance can be expensive, but there are some things you can do to make it manageable by working with things that you can control, like the vehicle and drivers.

1. Choose your drivers carefully

The people you put behind the wheel of your work vehicles can save you money if they have a good driving record — or hurt your rates if they have black marks on it instead.

“Start with what you can control, i.e., your own and your employee’s driving records and claims history,” says Kari Allen, vice president of sales, e-commerce and partnerships at Insureon. Maintaining clean driving records shows your drivers are less risky to insurers.

2. Maintain your vehicles

Ensuring your fleet of vehicles is properly maintained and reliable, training your drivers, and conducting regular inspections are other ways to reduce your risk of accidents and claims. Keeping track of maintenance and training records may also result in premium savings.

3. Keep a clean claims record

Only filing claims when necessary is one of the best ways to keep insurance premiums down. You increase your business’s risk to insurance companies if you make claims for smaller items, like a scratched-up vehicle whose repair costs are barely over your deductible.

Collision and comprehensive coverage both come with a deductible, which is the amount you pay before your coverage kicks in. So there is no reason to claim for damage that isn’t over your deductible amount, as your insurer won’t pay out, but your insurer knows about the incident — which makes you look riskier.

4. Choose a higher deductible

By choosing a higher deductible, you take on more of the financial burden, so your commercial auto insurance premium is lowered. Car insurance deductibles usually range from $250 to $2,500, so by choosing a $1,000 deductible over a $250 one, you’re going to save.

“When buying a policy, you could also choose a higher deductible to save money and lower your premium, but you must make sure the deductible is something you can readily afford,” Allen says.

5. Bundling coverage with the same insurance company

Bundling your commercial insurance with other business policies with the same company usually qualifies you for a multi-policy discount. For instance, if you have general liability or workers’ compensation insurance with an insurer, speak with them about adding a commercial auto policy and getting a discount.

6. Ask about discounts

Ask your agent about discounts your business is eligible for to reduce your premium cost. For instance, you may be eligible for a multi-car discount for insuring more than one company vehicle. You may also receive a reduced rate if you equip your work vehicles with safety features such as vehicle recovery and alarm systems.

If you qualify for more than one car insurance discount, you can usually stack them together to maximize savings.

Want more ways to save? Our experts have compiled a list of the best ways to save on commercial auto.

How and where compare commercial auto insurance quotes

To get the best possible price for commercial auto insurance, you need to compare quotes with multiple insurance companies. Each weighs risk factors differently, so you’re looking for the one that works best for your business and, thus, offers the best rates.

Getting quotes from three to five commercial insurers can help determine which companies have the best rates for your unique needs. There are tips on how to shop for commercial auto insurance coverage:

Go directly to the insurer. Companies like Progressive, The Hartford, and Next Insurance offer quick online quotes. You can also call a representative to get a quote over the phone.
Use an independent insurance agent or broker. Not sure which insurer is right for you? Independent agents work with multiple carriers and can match your business with the best option. You’ll typically complete a detailed application or questionnaire to help narrow down the right fit.
Try an online agency. Platforms like Insureon gather quotes from several insurers in one place, making it easy to compare options and find a policy that fits your needs and budget.
Explore third-party quote tools. Several online services provide commercial auto insurance quotes by collecting your business details and showing estimated pricing from various insurers.

You can also use our various tools and calculators as a commercial auto insurance cost estimator to get an idea of how much you might pay based on your company drivers’ ticket and claim history, age and vehicle model.

Keep in mind that the cheapest option may not be the best option. You’ll want to do business with a company that is on a strong financial footing and that offers good customer service. After narrowing down your choices, check the company’s financial strength ratings through AM Best or other rating agencies, along with its customer satisfaction rankings through one of the many insurance consumer surveys done by J.D. Power.

How claims affect your commercial auto insurance costs

Any claim you file can raise your commercial auto insurance premiums. But so can claims others file since insurance is a shared risk pool. Though insurance companies are there to protect you if you get into an accident, they’re also a for-profit business. When claim severity and costs rise, insurers increase premiums across the board to offset the rising costs.

Although we call claims accidents, many are preventable. Over 44,000 people died in avoidable crashes in 2024, according to the National Safety Council. Ensuring your drivers are fully trained, never use their phone while driving, and always stay alert can help them avoid a preventable accident.

Another factor that significantly influences commercial auto liability insurance cost is social inflation, with juries awarding ever-higher claim payouts to those injured by commercial insureds. While inflation grew at a rate of 1.7% per year from 2010 to 2018, the size of verdict awards skyrocketed by 51.7%, with settlement payouts being around 38% higher than jury awards.

Common mistakes to avoid when estimating commercial auto insurance costs

Commercial auto insurance is necessary to protect your business, but not understanding how it works can lead to making mistakes when estimating costs. Premiums vary widely based on your business type, vehicle type, driver history, location, coverage limits and how your vehicles are used — so take all of these items into account when thinking about your costs.

To avoid underestimating your cost or choosing the wrong policy, watch out for these common mistakes:

Assuming commercial insurance costs the same as personal car insurance. Commercial auto insurance is almost always more expensive because businesses face higher claim severity, more frequent vehicle use, and greater liability exposure. Don’t base your budget on personal auto rates, as the two types of car insurance aren’t comparable.
Overlooking your employees' driving records. Your premium is directly tied to the driving history of anyone who gets behind the wheel. Accidents, tickets and past claims will affect your commercial car insurance premiums. Verify driving records instead of assuming your workers have clean driving histories.
Underreporting or misrepresenting vehicle usage: Insurers price policies based on how your vehicles are actually used. Be honest about whether your drivers are commuting, transporting goods or doing long-distance travel. Underestimating mileage or downplaying business use can lead to inaccurate quotes and potential claim issues down the line.

The more information you provide while estimating and quoting commercial auto insurance, the more accurate your premium will be when you go to buy the policy.

Expert Advice

Kari Allen

Vice president of sales, e-commerce and partnerships at Insureon

Q: How can you save on commercial auto insurance?
“Start with what you can control, i.e., your own and your employee’s driving records and claims history,” she says. Maintaining clean driving records and only filing claims when necessary is one of the best ways to keep insurance premiums down.

Frequently asked questions

Is commercial insurance expensive?

Commercial insurance tends to cost more than personal insurance because businesses face higher risks and need broader coverage. Whether you find the cost expensive comes down to your budget and the level of coverage your business needs.

Can I get discounts on commercial auto insurance?

Many insurance companies offer discounts on commercial auto insurance, but the types of discounts and savings vary. Common discounts include a multi-car discount if you insure at least two commercial vehicles with the same insurer and a multi-policy discount for buying more than one type of policy with the same company.

How does my business size affect insurance costs?

How many business vehicles and drivers you have affects how much you pay for commercial car insurance coverage. The more commercial drivers and vehicles you insure, the more your commercial vehicle insurance will cost.

Does my personal auto insurance cover business use?

In general, personal auto insurance does not cover business use. Your personal auto policy might cover using your personal car for some limited business-related activities, but it depends on who owns the vehicle, how you use it and the type of vehicle.

If the car is in your personal name and you primarily drive it for personal use, your policy might cover some business-related driving, like going to meetings or running errands. But if the vehicle is in the business name or you primarily drive it for work purposes, you may be better off with a commercial auto insurance policy, which can cover driving for personal and business purposes. Always check with your insurance company to be certain of what’s covered.