Auto & transportation

Commercial Auto Insurance

Protection for the vehicles your business owns or leases, plus liability options for vehicles you rent and for employees' own cars used for work.

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Commercial auto insurance protects your business when a vehicle used for work is involved in an accident. It typically pays for injuries and property damage you cause to others, and it can also pay to repair or replace your own vehicles.

A personal auto policy usually limits or excludes business use, especially for vehicles titled to a company, driven by employees or used to haul tools and materials. If a truck, van or pickup is part of how you make money, it generally belongs on a commercial policy.

From one work van to a mixed fleet, we help you review coverage for how your vehicles are used and where they operate. Insurance options depend on your business, location, licensing requirements and carrier availability.

Owned, hired and non-owned autos

Owned autos are the vehicles your business owns, or leases long term. They are usually listed on the policy and can carry both liability and physical damage (repairs to the vehicle itself).

Hired autos are vehicles you rent, hire or borrow for the business, such as a rental truck for a job. Hired auto liability can respond to accidents you cause in them. Damage to the rental itself is a separate option, often called hired auto physical damage.

Non-owned autos are vehicles your business doesn't own, rent or borrow, most often employees' personal cars used for errands or site visits. Non-owned auto liability protects the business. It usually doesn't repair the employee's car, and the employee's own policy typically responds first.

What's typically included

Exact coverage depends on the policy form, endorsements and insurance company.

Auto liability

Typically pays for bodily injury and property damage to others when a vehicle on the policy causes an accident, up to the limit. Many contracts ask for a $1,000,000 combined single limit, meaning one limit for injuries and property damage together.

Physical damage

Collision can pay to repair your vehicle after a crash. Comprehensive (other than collision) typically responds to theft, vandalism, fire, flood and glass. Deductibles are usually chosen per vehicle.

Hired and non-owned auto liability

Hired auto can extend liability to vehicles you rent, hire or borrow. Non-owned auto can protect the business when employees use their own cars for work. Neither usually pays to repair the vehicle itself; ask about hired auto physical damage for rentals.

Covered auto symbols

Symbols are numbers on the policy that decide which vehicles each coverage applies to. Symbol 1 (any auto) is the broadest and is usually offered only for liability. Symbol 7 applies only to listed vehicles, so new ones have to be reported. Symbols 8 and 9 apply to hired and non-owned autos.

Medical payments and PIP

Medical payments and personal injury protection (PIP) can help pay medical costs for people injured in your vehicle. PIP and no-fault rules vary by state; we'll help you check which apply where your vehicles are registered and garaged.

Uninsured and underinsured motorist

Can help when your driver or vehicle is hit by someone with no insurance or too little. Available limits and rejection options depend on the state.

Contract endorsements

Additional insured, primary and noncontributory, and waiver of subrogation endorsements are often required by general contractors, property managers and municipalities. Blanket versions can apply when a written contract requires them, so each contract doesn't need its own endorsement.

What to watch for

Vehicles titled to the owner personally but used for the business, or titled to the business but insured on a personal policy. Titles, registrations and the named insured should line up.
Drivers who were never reported. Many insurance companies check the motor vehicle record (MVR) of every driver, and an unlisted driver with violations can cause problems at claim time or at renewal.
Scheduled-auto policies (symbol 7) where a newly bought vehicle was never added. Ask how many days the policy gives you to report new vehicles.
No hired or non-owned auto coverage when the business rents vehicles or employees use their own cars for work. An employee's personal policy usually responds first, but a serious accident can reach the business.
Contract requirements such as additional insured or waiver of subrogation that appear on a certificate but are not actually endorsed on the policy. A certificate shows coverage; the endorsement provides it.
Radius and use changes. A vehicle rated for local service that starts making long runs or hauling goods for others may need a different policy.

What affects price and eligibility

Vehicle types, weights (GVW) and stated values
Driver ages, experience and MVRs, including violations and accidents
Radius of operation and how vehicles are used (service, retail delivery, commercial hauling)
Garaging address and where the vehicles operate
Loss history and years in business
Limits, deductibles and optional coverages selected

Helpful information for a quote

Have what you can — we'll ask for anything else an insurance company needs. Starting a new business? You can begin without prior policies or loss runs.

Vehicle list with year, make, model, VIN, garaging address and value (for physical damage)
Driver names and years of driving experience; dates of birth and license numbers only if the insurance company needs to check driving records
Your current declarations page, if you have a policy now
Loss runs for the last 3–5 years, if you've been insured before
A short description of what you do and how far your vehicles usually travel
Any contract or certificate requirements you need to meet

Start with basic business information. If more detailed driver information is needed, we'll arrange an appropriate way to collect it.

Written by ALP Insurance

Who typically needs it

Contractors and trades running pickups, vans or dump trucks titled to the business
Service companies whose technicians drive company vehicles to customer sites
Local delivery, catering and courier businesses operating within a set radius
Businesses whose employees run errands in their own cars (non-owned auto)
Companies that rent vehicles for specific jobs or projects (hired auto)
Landscapers and snow plow operators towing trailers and equipment

Talk it through with an agent

Not sure what you need? Start a request and choose "Not sure" — a licensed ALP agent will talk through the options with you.

Request a commercial auto quote

Industry guides

Commercial Auto FAQs

Can I keep a work truck on my personal auto policy?

Sometimes, for a vehicle titled to you and used lightly for business, but many personal policies limit or exclude business use. If the vehicle is titled to the company, driven by employees or used to haul for work, a commercial policy is usually the better fit.

What is the difference between hired and non-owned auto?

Hired auto applies to vehicles your business rents, hires or borrows, such as a rental truck. Non-owned auto applies to vehicles you don't own or rent, most often employees' personal cars used for business errands. Both are usually liability coverage for the business; repairs to an employee's car stay with their personal policy.

What liability limit do I need?

It depends on your contracts, assets and exposure. Many general contractors and property managers ask for a $1,000,000 combined single limit, and an umbrella can add more above that.

Why do you ask about drivers?

Most insurance companies check the driving record of every listed driver, and driving records are among the biggest factors in eligibility and price. You can start with basic business information; if detailed driver information is needed, we'll arrange an appropriate way to collect it.

Is commercial auto the same as trucking insurance?

Not quite. Trucks hauling goods for others under their own authority usually need a trucking policy, often with federal or state filings. Owner-operators leased to a motor carrier usually rely on the carrier's primary liability while under dispatch and need non-trucking liability for other use. We'll help you work out which one fits your operation.