Commercial Car Insurance Explained

Commercial car insurance covers businesses that use commercial vehicles to transport people or goods. Before you buy a commercial car insurance policy, find the lowest rates using our quote comparison tool.

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A former insurance producer, Laura understands that education is key when it comes to buying insurance. She has happily dedicated many hours to helping her clients understand how the insurance marketplace works so they can find the best car, home, and life insurance products for their needs.

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Written by Laura Berry
Former Insurance Agent Laura Berry

Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Jo...

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Reviewed by Joel Ohman
Founder & CFP® Joel Ohman

UPDATED: May 4, 2022

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Here's what you need to know...

  • If you own an independent small business that includes owning and operating your vehicles, then you might be able to get by with your own personal car insurance
  • For example, an online business operated from home that does not use vehicles for commercial purposes would have no use of commercial car insurance
  • A large business that uses commercial vehicles to do things such as transport people or goods would need to have more than just the typical business insurance
  • Before you purchase commercial car insurance, you will need to do as much research as you can

In the business of car insurance, commercial insurance is intended to be used by small or large businesses. If your business uses a car, van, or truck for commercial business purposes, then you will need to purchase commercial car insurance.

Take care of business by entering your zip code and comparing commercial car insurance quotes now!

Commercial Car Insurance: Coverage Purchasing Guidelines

If you own, rent, or lease a car for commercial use that is being used by more than one person, you will need to the benefits of commercial car insurance.

If you have many employees that use their own cars for commercial business purposes, then you will need to purchase liability coverage. The main commercial car insurance for that situation will be that of the employee.

While you are comparing quotes and doing research on the different types of commercial car insurance, there will be many things that you have to consider.

If you are having a hard time trying to figure out what to look for, you may want to answer the following:

  • Who will be driving the vehicle?
  • How many vehicles will be used for commercial purposes?
  • Who owns the commercial cars?
  • What type of car is it?
  • What is the classification the car?
  • How many cars of that type and classification are going to be used?

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Commercial Car Insurance: Coverage Types

The many different types of commercial car insurance coverage could prove useful for your business. It is important for you to have as much protection as possible.

However, you need to consider the price of each commercial car insurance coverage policy because many extra policies will cost more than you might be able to afford.

Before you purchase a commercial car insurance coverage policy, it is important for you to make sure that the policy is relevant to your business and your situation. You do not want to purchase a policy that is too expensive and is not useful.

Relevant commercial car insurance policies might include liability for each driver. Other commercial car insurance coverage policies might include comprehensive coverage and collision damage for each car that is used for business purposes.

You might even need to take advantage of provision coverage polices. This type of coverage policy will do more than just recover the loss of your vehicle.

When you have a provision coverage policy, your insurance company will take care of any goods or inventory that you may have lost. However, this only pertains to products or inventory associated with your business.

Also, it had to have been in the lost car, which includes any commercial business related cargo or business related tools.

Other commercial car insurance policies that may be of use to you include the following:

  • Comprehensive coverage
  • Medical payments
  • Collision coverage
  • Motor truck cargo coverage
  • Coverage for uninsured and underinsured motorists
  • Property damage and liability coverage
  • Bodily injury and liability coverage

Commercial Car Insurance: Policies


There are many different policies available for different vehicles. Also, each state may have different types and classifications of cars. One state may consider a tow truck and a passenger van two different types of cars. Another may only classify two different cars by weight.

The price of your commercial car insurance policy will depend on the type and the classification of the cars that you use for commercial purposes.

You have many different insurance options and many different policy variations.

A few of the following insurance policies will cost extra:

  • Cargo coverage
  • Tool and equipment coverage
  • Business interruption coverage
  • Crime insurance
  • Umbrella coverage
  • Rental reimbursement

As you can tell, you have a lot of decisions to make when it comes to finding the right commercial car insurance for your business. You can use our search engine tool below to begin your car insurance research.

Start with a zip code and compare commercial car insurance quotes immediately!



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Enter your ZIP code below to view companies that have cheap car insurance rates.

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