What this coverage is
Business auto insurance, also called commercial auto, helps protect vehicles used for business purposes. It commonly includes liability coverage for injuries and damage your drivers cause to others, plus optional physical-damage coverage for your own vehicles.
Personal auto policies typically exclude regular business use, so companies that rely on vehicles generally need a commercial auto policy. Coverage can be structured around owned, hired, and non-owned vehicles depending on how your business operates.
Who commonly needs it
Businesses that own vehicles, transport goods or people, or have employees driving for work commonly carry commercial auto coverage. Even businesses that use personal or rented vehicles for work may need hired and non-owned auto coverage.
Where this coverage commonly fits
Operational — coverage tied to how a business physically operates day to day — its property, vehicles, and equipment. Commercial auto commonly fits businesses that own, lease, or regularly use vehicles for work.
- Delivery and trucking operations
- Contractors and trades hauling tools and materials
- Service businesses with fleet or work vehicles
- Auto dealers and repair shops moving vehicles
- Businesses whose staff drive for work errands
What it may cover
- Bodily injury and property damage liability your drivers cause to others
- Collision damage to your covered vehicles
- Comprehensive losses such as theft, fire, vandalism, and weather
- Medical payments or personal injury protection, where applicable
- Uninsured and underinsured motorist coverage
- Hired and non-owned auto exposures, when added
What it typically excludes
- Cargo being hauled, which motor truck cargo coverage addresses
- Vehicles used purely for personal use without a business endorsement
- Intentional damage or illegal use
- Wear, tear, and mechanical breakdown
- Liability above selected limits
Hypothetical claim scenarios
These illustrative examples are for general understanding only. Coverage depends on the specific policy terms, conditions, and exclusions.
At-fault collision
A company van rear-ends another car, injuring the driver. Commercial auto liability may help respond to the injury and property-damage claims, subject to limits and policy terms.
Stolen work truck
A work truck is stolen from a job site overnight. Comprehensive coverage may help replace the vehicle, subject to deductibles.
Employee errand accident
An employee runs an errand in a rented vehicle and causes an accident. Hired and non-owned auto coverage may help respond, subject to policy terms.
What commonly affects cost
- Number, type, and value of vehicles
- Driving records of your drivers
- Radius of operation and how vehicles are used
- Selected liability limits and deductibles
- Cargo, weight class, and industry
How much does it cost?
On average, many businesses pay roughly $1,500–$3,000 per vehicle per year for business auto insurance. That figure is a general national average only — your actual premium is set during underwriting.
- Business Auto Insurance$1,500–$3,000 per vehicle per year
These are general national averages shown for comparison only — not a quote. Actual premiums vary widely with underwriting and depend on the factors above and the specifics of your business, including size, revenue, location, claims history, and the limits you choose. See how we estimate costs.
Industries where this coverage is common
Coverage needs vary business to business — most companies consider this protection regardless of industry. These are simply the industries where we see it most often.
See how this coverage works in your industry
A few examples from the business types we cover — this coverage applies well beyond the industries shown here.
Don't see your business type? Browse all industries we cover — coverage recommendations are tailored to every operation.
Frequently asked questions
Can I use my personal auto policy for business?
Personal auto policies generally exclude regular business use. Businesses that use vehicles for work commonly need a commercial auto policy to avoid coverage gaps.
What are hired and non-owned auto coverages?
Hired auto coverage applies to vehicles you rent or lease, and non-owned auto coverage applies when employees use their own vehicles for business. Both help address gaps when you do not own the vehicle.
Does business auto cover the cargo I haul?
Liability and physical damage generally cover the vehicle, not the freight. Motor truck cargo insurance is commonly used to cover the goods being transported.
Are my employees covered while driving?
A commercial auto policy commonly covers permitted drivers operating covered vehicles, but driver records and listed-driver requirements affect coverage. Review terms with your agent.
How are commercial auto premiums determined?
Premiums commonly reflect vehicle types and values, driver history, operating radius, industry, and the limits and deductibles you select.
How do I get a quote for this coverage?
Call The Southern Agency at 1-800-777-1872 or request a quote online, and an advisor can help tailor coverage to your business.
Related coverages
- General Liability Insurance Foundational protection for third-party bodily injury, property damage, and advertising injury claims.
- Business Owners Policy A bundled policy combining general liability and commercial property coverage for many small businesses.
- Workers Compensation Insurance Coverage for employee work-related injuries and illnesses, often required by state law.
- Commercial Package Policy A flexible policy combining multiple commercial coverages for larger or more complex businesses.