Best Commercial Car Insurance Companies | 2022 Guide (2024)

It's said that business owners pay the cost to be the boss, and there are certainly many costs associated with your daily operations. Least of all is the expense of commercial car insurance. But how do you know when you need a commercial auto policy, and how do you know you're getting a good deal?

Whether you're an independent contractor with a van full of tools, an Uber driver waiting for a fare, or a fleet manager overseeing multiple vehicles, commercial car insurance ensures that your property and the well-being of employees are protected from injury and damage while on the job. But the good news is that you won't necessarily need to pay an arm and leg for commercial protections.

Furthermore, while most insurance underwriters offer a broad selection of coverages to meet most business needs, some providers may be better suited to meet your specific needs. This is why we've rounded up the best commercial car insurance companies to help you save money on your policy premiums, but without compromising on quality.

This article may include references to products or services where The Drive has an affiliate relationship with the providing company. The Drive and its partners may earn a commission if you purchase a product through one of our links. Read more.

Best Commercial Car Insurance Companies

Best for Contractors: Farmers

Best for Ride-Hailing Drivers: Geico

Best for Customer Service: Allstate

Best Value: Progressive

Pros

Cons

Summary

Whether you’re a large-scale operation with a fleet of rental cars, or a local business insuring your company van, Progressive offers a variety of ways to lower your premium with multiple discounts, robust policy bundling options, and a pay-as-you-drive program.

Progressive gets our pick for the insurance company that provides the best value because it offers so many ways for business owners to save money. Because it's among the largest underwriters in the U.S., Progressive can offer deep discounts without compromising on coverage, and it can do so in all 50 states for a wide range of commercial cars, trucks, vans, and more.

Progressive provides the standard coverage one expects of an insurance carrier, such as liability — bodily injury and property damage — collision and comprehensive, medical payments, and underinsured and uninsured motorist. But it also offers coverage not common to all insurers, such as non-owned, hired auto, and any-auto policies that protect both cars owned by your business and cars owned by your employees that are used for business purposes.

However, this carrier shines when it comes to cost. Progressive allows seasonal coverage adjustments to help businesses save money on their policies during the off season. It also features Snapshot ProView, a pay-as-you-go program for fleets that utilizes a device that monitors and rewards safe drivers. Progressive also offers more discounts than most other insurance providers, making it easy to save money by enrolling in autopay, paying your policy in-full, and having a safe driving record, to name a few. And because Progressive offers a wide range of insurance, such as business owners’ policies, workers’ compensation, and more, you may lower your premiums even more with a bundled insurance package.

Best for Contractors: Farmers Insurance

Pros

Cons

Summary

Contractors and tradespersons have a lot to like when it comes to coverage for expensive tools and building materials stolen from a company car or truck. Furthermore, Farmers’ indemnity agreements include primary and noncontributory requirements that ensure general contractors aren’t responsible for damage caused by their subcontractors.

If you’re a contractor looking for commercial car coverage for SUVs, vans, or trucks, Farmers might be worth considering. This underwriter features a lineup of flexible policies that can be customized to meet your business’s specific needs. It also extends additional types of business coverage, including workers’ comp and umbrella insurance. This is a nice touch for those looking for multiple insurance solutions.

In addition to offering the standard coverage for commercial auto insurance — such as liability, collision, and comprehensive — Farmers also provides specialized policies for business vehicles and the costly tools stored within. In many instances, this protection also extends to vehicles owned by employees and subcontractors, too. Although, with Farmers primary and noncontributory coverage, you’re not necessarily on the hook when a problem occurs with employees — coverage from a separate policy kicks in.

If you’re the type who doesn’t value aggressive sales pitches from insurance agents, you’ll have to go elsewhere. Farmers doesn't offer potential customers online quotes. You’ll have to talk directly to an agent.

Best for Single Vehicles: Nationwide

Pros

Cons

Summary

Those who need commercial car insurance for one or two vehicles might enjoy Nationwide’s highly customizable policies, affordable premiums, and zero-dollar deductibles.

Sole proprietors, gig drivers, and small businesses who only need coverage for one to several vehicles should know about Nationwide. While this provider features policies that are attractive to just about every type of enterprise, its adaptable coverage is well suited for people who need inexpensive commercial insurance for their cars.

In addition to standard protections, Nationwide has an array of optional coverages and add-ons fitting for a variety of needs. Its new vehicle replacement cost coverage pays to replace automobiles under a total loss claim and also provides gap coverage for any amount you might owe above your car’s actual cash value. Nationwide’s roadside assistance gets ride-hailing service and livery drivers back on the road when they need it most, and it will even reimburse for towing costs and a rental car while waiting for repairs or settlement procedures. Nationwide’s hired-auto coverage insures any rental vehicles for comprehensive and collision to boot.

Unfortunately, similar to Farmers, Nationwide requires you to get quotes and purchase policies directly from affiliated insurance agents. But this isn’t always bad news, especially for people who place a high value on in-person services. If you were hoping to skip the high-pressure tactics, however, Progressive may be a better option.

Best for Fleets: The Hartford

Pros

Cons

Summary

Fleet managers may find a lot of value with an insurer that specializes in fleet coverage. In addition to adaptable policies for five or more vehicles, The Hartford has a proven track record of reducing employee accidents with its dedicated risk management team and telematic driver-data program.

Providing insurance coverage since 1810, The Hartford is among the more well-established commercial car insurance companies in the nation. Its understanding of the unique insurance solutions that businesses are in need of is reflected in The Hartford’s commitment to driver safety.

Its FleetAhead program helps mid- to large-scale businesses improve employee safety and reduce claims losses with telematic devices that gather real-time driver data. The Hartford will track risks — such as cornering, lane handling, speeding, acceleration, and braking — to help fleet managers coach their teams with safer driving practices.

It also adds a number of valuable add-on protections at no additional cost, including vehicle wrap coverage, electronic devices insurance, and gap coverage for leased and loaned vehicles. This is in addition to its standard coverage options: liability, comprehensive, collision, medical payments, non-owner, and underinsured and uninsured motorist.

Best for Ride-Hailing Drivers: Geico

Pros

Cons

Summary

Uber and Lyft drivers may find what they’re looking for with Geico’s specialty ride-hailing coverage that protects them at all times. Additionally, with generous discounts and affordable price points, many may find their premiums pleasantly inexpensive.

Ride-hailing drivers have special insurance needs over other livery professionals, or, rather, those who drive for hire, such as taxi and limousine drivers. While ride-hailing platforms such as Uber and Lyft provide some insurance protections, there are a lot of gaps in the coverage depending on whether or not a driver is waiting for a customer or is en route to pick up a fare. Additionally, most personal car policies exclude coverage for fares, and some providers might cancel a policy altogether because of ride-hailing work.

While several commercial car insurance providers on this list will cover Lyft and Uber drivers, Geico has a specialty solution for those who are hesitant, or unable, to pay for both private and commercial car insurance: a hybrid policy that covers both personal and for-hire driving events. Geico's ride-hailing policy features comprehensive, collision, liability, and medical payments for when your ride-hailing app is active, but you're waiting for a fare. It also provides those protections for when you've accepted a request but are still enroute to pick up your ride. Of course, when you’re not working, then this hybrid policy still protects you.

While coverage specifics and price points will vary, Geico’s ride-hailing policy has a reputation for being only slightly more expensive than a standard personal auto policy, which is good news for gig-economy workers.

Additionally, Geico offers quotes online, and you can manage claims and policy payments through its mobile app. These are both benefits for busy, digital natives who don’t have the bandwidth for pushy insurance agents and long wait times on the phone. However, if you prefer the personal touch of in-person service, a more traditional experience is still available.

Best for Customer Service: Allstate

Pros

Cons

Summary

Those who prioritize customer service when it matters most — after an accident or when filing a claim — should take a look at Allstate. Not only does it offer a Claim Satisfaction Guarantee that promises to refund your premium, no questions asked,but Allstate has a reputation for providing excellent customer satisfaction.

With a track record of providing above average customer service, it’s no wonder that Allstate commercial car insurance received the highest ranking for customer satisfaction from the independent consumer insights firm, J.D. Power and Associates. In fact, Allstate’s Claim Satisfaction Guarantee will refund your money without any questions if you’re not happy with your auto claim. This piece of mind is included in all policies at no cost to you.

This provider offers flexible protection, but standard coverage includes collision, comprehensive, liability, rental car costs, and uninsured and underinsured motorists. Businesses can further customize their protection with add-ons for roadside assistance, towing expenses, rental reimbursem*nt, and non-owned liability, to name a few.

Allstate insures a wide variety of commercial automobiles, including refrigerated box trucks, glass trucks, utility vans, and more. You can request a quote online or through Allstate’s extensive nationwide network of agents.

Average Cost

As a rule of thumb, for a policy limit of $1 million, the median cost of commercial auto insurance is $142 per month or $1,704 annually. This, according to the insurance marketplace Insureon also points to data showing roughly 40 percent of small business owners pay less than $1,500 a year for a commercial policy, while about 20 percent pay more than $3,000 annually.

The exact amount you’ll pay is determined by multiple factors that we include in detail below. Hopefully, your commercial coverage needs to place you in the 40 percent category.

How to Save on Insurance

The best ways to save money on your commercial car insurance policy are to get quotes from three to five providers when you initially shop for a policy, choose an underwriter that offers multiple discounts, lower your policy limit, and increase your deductible.

Insurance companies entice new clients by advertising low rates. But remember that the insurance rate you’ll pay depends on a number of variables. Still, you can lower your premium costs without compromising on coverage by qualifying for as many policy discounts as possible. Here’s how to look out for discounts and which ones we’d recommend.

Essential Cost Variables for Insurance

As with everything, there are a host of variables that will affect the cost of your insurance as no two people are exactly alike. With that in mind, here are the variables that’ll change the cost of your insurance.

Age, Gender, and Location

Similar to when you purchase a personal auto insurance policy, insurers use demographic information as a cost variable to determine how much you’ll pay for coverage for your business and employees.

General Risk Factors

Your insurance agent will look at several primary data points to decide on the cost of your policy.

Industry Risks

The type of business that you operate will help an insurer establish your industry risks, which are risks specific to you. For example, a construction and contracting business may have higher risk of incurring damage — due to frequency of travel or the value of tools and equipment — than a media and advertising firm with only one or two vehicles that are mostly used for events.

Credit Score

While providers will use a personal credit score as a determining factor for the cost of a personal auto insurance policy, they will similarly use your business credit score to forecast the likelihood that you’ll file a claim. If you are a sole proprietor that has yet to establish a business credit score, then your agent may use your personal credit score instead.

Type of Coverage

The type of coverage you secure will have a dramatic impact on the cost of insurance. While a liability-only policy will generally be your cheapest option, it’s bare minimum coverage that will leave you paying out-of-pocket for damage to your own vehicle.

Similarly, full coverage provides valuable protection to your property and employees, but it will also increase the price tag on your monthly or annual premiums.

Most states require all motorists, commercial and private, to carry auto liability coverage. While the titles may vary slightly by insurance company, a typical commercial auto policy will include:

Your commercial policy could also include add-on coverage for roadside assistance, towing, rental reimbursem*nt, and more. Keep in mind that the more coverage you have, the more your coverage will cost.

FAQs

You’ve got questions. The Drive has answers.

Q. Why do I need commercial auto insurance?

A. People who regularly use their vehicles for work might need a commercial auto insurance policy. This is true for small business owners and the self-employed who own and operate one or more vehicles for business purposes. If you are a sole proprietor or only use your car or truck occasionally for commercial purposes, your personal auto insurance may offer enough coverage. Consult your insurance agent to determine your specific needs.

Those who need commercial auto insurance, include:

Q. Is commercial auto insurance more expensive?

A. Typically, commercial auto insurance is more expensive than personal auto insurance. This is because commercial vehicles are riskier to insure. Consequently, a commercial policy often has higher limits to compensate for that increased risk. Additionally, these policies often cover an entire business, which could include multiple vehicles and drivers, expensive equipment, and even employees with less-than-desirable driving histories.

Q. Do I need commercial car insurance with Uber and Lyft?

A. Gig drivers will generally have satisfactory coverage with the commercial insurance provided by their ride-hailing platform. As long as your ride-hailing app is active, both Uber and Lyft provide limited coverage for when a driver is waiting for a ride, en route to pick up passengers, and ferrying passengers to their destinations.

Ride-hailing platforms do not provide gap coverage with platform apps that are inactive. Similarly, drivers don’t enjoy the piece of mind from collision or comprehensive coverage while they are waiting for a ride request. It’s at these points when coverage gaps get cloudy. Most providers exclude ride-hailing service fares from personal policies. So, unless you’re willing to pay for damage to your vehicle out of pocket, you should consider specific ride-ha-ling service insurance or a commercial car insurance policy.

Q. What is the difference between commercial auto insurance and personal?

A. Commercial auto insurance is designed for vehicles that are used for business purposes. A personal auto insurance policy covers a single person operating their own car, but a commercial policy covers an entire organization. Because of the heightened risks related to insuring business vehicles, commercial coverage is generally more expensive than a similar personal policy.

Our Methodology

To choose the best companies and products for this list, I looked at a large number of financial products from various providers. I focused on cost, product features and options, ease of use, customer service, and past customer ratings as the most important factors in the ratings.