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When personal auto isn’t enough
Insureon notes that personal auto policies cover personal use, not work-related driving beyond your commute. You probably need commercial auto if:
- The vehicle is owned or leased by your business
- You make deliveries or transport goods, tools or equipment
- You drive to client sites as part of your work
- Employees drive vehicles for the business
- You carry passengers for a fee (rideshare has its own rules; see our rideshare guide)
- Your vehicle is a truck, van or specialist vehicle used for business
What commercial auto covers
| Coverage | What it pays for |
|---|---|
| Liability | Injuries and property damage you cause to others (required by law) |
| Collision | Damage to your vehicle in a crash |
| Comprehensive | Theft, vandalism, weather and other non-collision damage |
| Medical payments / PIP | Medical bills for drivers and passengers |
| Uninsured/underinsured motorist | Losses caused by drivers without enough insurance |
Commercial policies typically offer higher liability limits than personal policies and can cover multiple drivers and vehicles.
Hired and non-owned auto (HNOA)
If employees run errands in their own cars, or you rent vehicles for business trips, your business can be sued after a crash. HNOA cover protects the business in those situations. It’s often added to a commercial auto policy or a general liability policy or BOP and is relatively inexpensive. It doesn’t cover damage to the employee’s own car.
What it costs
Insureon’s customers paid a median of about $245 a month ($2,940 a year) in 2026, with annual premiums ranging from under $375 to more than $16,000. Price depends on vehicle type, number of vehicles, drivers’ records, how far and where you drive, what you carry and your limits.
How to lower the cost
- Hire drivers with clean records and check motor vehicle reports.
- Use telematics or fleet safety programs; some insurers offer discounts.
- Raise deductibles on collision and comprehensive.
- Bundle with other business policies; see our insurer comparison.
- Choose the right vehicle classification and accurate mileage.
For overall costs, see how much small business insurance costs.
Frequently asked questions
When do I need commercial auto insurance?
When your business owns vehicles, or you or employees regularly drive for work beyond commuting, such as deliveries, client visits or transporting equipment.
How much is commercial auto insurance?
A median of about $245 a month in Insureon’s 2026 data, with annual premiums ranging from under $375 to over $16,000.
Does personal auto insurance cover business use?
Generally not beyond commuting. Some insurers offer business-use endorsements for light work driving.
What is hired and non-owned auto insurance?
Cover that protects your business when employees use their own cars or rented vehicles for work.
Can I use my personal car for my business?
Yes, but tell your insurer. You may need a business-use endorsement or a commercial policy depending on how you use it.
Sources
- Insureon – Commercial auto insurance cost (Mar 2026)
- Insureon – Small business insurance costs (Feb 2026)
- U.S. Small Business Administration – Get business insurance
- State Farm – Small business insurance
- Maine Bureau of Insurance – Insuring your home business
Insurance prices, discounts and rules change often and vary by state. Figures were checked in October 2026; confirm details with the insurer or your state insurance department.