WD Royal Insurance: Your Trusted Independent Insurance Agency in Florida Commercial Auto Insurance

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Commercial auto insurance protects business-owned or leased vehicles and covers liability for accidents that occur during business use. It is separate from personal auto insurance, as business vehicles are typically exposed to more risk and require higher coverage limits.

Who needs commercial auto insurance?

Businesses must purchase a commercial policy if they use vehicles for work-related purposes beyond normal commuting, such as: 

• Transporting goods or equipment for services like contracting, catering, or deliveries.
• Carrying passengers for a fee, which includes taxis, limousines, or other transportation services.
• Operating specialty vehicles like food trucks, dump trucks, or semi-trucks.
• Driving a personal vehicle for business. A personal policy will likely not cover accidents that happen during business activities.
• Having employees drive company-owned or personal vehicles for work.

 What does it cover?

A standard commercial auto policy can include: 

• Liability coverage: Pays for bodily injury and property damage to another party if you or an employee are at fault in an accident. It also covers legal defense costs.
• Collision coverage: Covers the cost of repairs or replacement if your vehicle is damaged in an accident or overturns.
• Comprehensive coverage: Pays for damage to your vehicle from non-collision incidents such as theft, vandalism, fire, or natural disasters.
• Medical payments: Covers medical expenses and funeral costs for you and your passengers after an accident, regardless of who is at fault.
• Uninsured/underinsured motorist: Covers damages if you are in an accident with a driver who has no or insufficient insurance.
• Hired and non-owned auto liability: Provides coverage for your business when employees use their personal vehicles or a rented vehicle for work-related errands. 

What is not covered?

Commercial auto insurance typically does not cover: 

• Tools and equipment inside the vehicle that are not permanently attached. These may be covered by an inland marine or general liability policy.
• Personal items stolen from the vehicle.
• Accidents that occur during personal use of a vehicle not covered by the policy.
• Work-related injuries that happen outside of a driving incident. These fall under a workers' compensation policy. 

How much does it cost?

The price of a commercial auto policy varies widely based on several factors. In 2024, median monthly costs for Progressive customers ranged from $212 for contractors to $869 for for-hire transport trucks.

Key factors that influence your premium include: 

• Profession and vehicle use: The higher your liability risk, the more you will pay. For example, a delivery van poses a different level of risk than a construction vehicle.
• Vehicle type: The size, age, and value of the vehicles on your policy, including any permanently attached equipment.
• Driving records: The driving history of you and any employees who operate the insured vehicles.
• Location: Insurance rates can be higher in areas with more crime, traffic, or a higher cost of repairs.
• Coverage limits and deductibles: Higher limits and lower deductibles will increase your premium. 

How to get commercial auto insurance

You can purchase commercial auto insurance by: 

• Contacting a specific insurance provider directly, such as Progressive, Travelers, or Geico.
• Working with an independent insurance agent who can compare quotes from multiple carriers to find the best policy for your business.