Do I Need Commercial Auto Insurance?

If you’re wondering – “Do I need commercial auto insurance?” – the answer is likely “yes.” Of course, it depends on a few factors, but most states require it if your small business owns, leases or rents any vehicles.
Author:
Chloe Silverman
Chloe Silverman,Staff Copywriter
Chloe Silverman
Staff copywriter specializing in small business insurance for The Hartford.
Reviewed By:
Gene Marks
Gene Marks,CPA, Keynote Speaker, National Business Columnist and Author
Gene Marks
CPA, keynote speaker, national business columnist and author.
LinkedIn Profile
Updated: 03/10/2025
Read Time: 4 minutes
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Key Takeaways

  • Commercial auto insurance protects your business against more than just car accidents.
  • Personal vehicles may also need to be insured under your business auto policy.
  • Commercial auto insurance laws and requirements vary by state.

When Do You Need Commercial Auto Insurance?

Figuring out who needs commercial auto insurance can be confusing, but we’re here to help. Although coverage availability and requirements vary by state, these are general factors to consider when deciding if you need commercial auto insurance:
 
  • Vehicle Type: Does your business own any cars or trucks used for business purposes, or do you use any specialized vehicles such as a dump truck, box truck, cargo van, tow truck, or large semi truck with a weight over 20,000 pounds? If so, you need a commercial auto policy.
  • Vehicle Ownership: If you own a vehicle registered under your business name, your personal auto insurance policy typically won’t cover it, and you’ll need to buy commercial auto insurance.
  • Drivers: If your employees drive company vehicles or their personal vehicles for day-to-day business operations, like visiting job sites or transporting goods, you should have a commercial policy. You can also protect your business with hired and non-owned auto (HNOA) coverage, a type of commercial auto insurance that can also help cover auto accidents that happen while your employee is using their personal vehicle for business purposes.
  • Vehicle Equipment: If you have permanently attached equipment to any of your business vehicles used for business purposes, make sure it’s covered by a commercial policy.
 

Commercial vs. Personal Auto Insurance

There are a few major differences between a personal auto policy and a commercial auto policy when it comes to what’s covered under each. A personal auto insurance policy protects you when you’re driving a car you use for commuting, driving around town or running personal errands. But it usually doesn’t offer enough protection if you’re a business owner. When operating a vehicle for business, it’s important to know the risks you face because they’re different and bigger. Learn more about what type of auto insurance coverage is right for you:
 

What’s the Difference Between Commercial and Personal Auto Insurance?

Commercial auto insurance coverage is needed if you’re using your company vehicles for business reasons. Typically, any of your employees with a valid license would be covered under this policy as additional insureds. It’s important to note that commercial auto insurance usually offers more comprehensive coverages, like higher liability limits.
 
Drivers often ask us, “Do I need commercial car insurance if I use my personal vehicle to drive to and from work?” The answer is usually “no,” because commuting is considered personal use.
You will need personal auto insurance coverage if you’re driving your car for personal reasons, including commuting to and from work. In most cases, personal auto insurance will not cover a vehicle that is used to operate a business. The coverage limits also tend to be lower.
 

Do I Need Commercial Vehicle Insurance and Personal Auto Insurance?

If you use your personal vehicle for business purposes or your business vehicle for personal reasons, you may want to consider having both commercial and personal auto insurance coverage. Most states require your company-owned vehicles to be covered by a commercial auto insurance policy. The type of policy(s) you need will largely depend on how the vehicle is titled and used.
 
For example, if one of your employees gets into a car accident on their way to complete a business errand for your company, you could be sued for bodily injury or property damage. While personal auto insurance wouldn’t cover you in this situation, having a non-owned vehicle insurance policy would.
 
small business owner enjoying their job knowing they have great commercial auto insurance rates from The Hartford

Why Is Commercial Auto Insurance Important?

Commercial auto insurance helps reimburse small business owners for costs related to a car accident that happened while you or an employee was using a company-owned car or their own car for business. This type of small business car insurance helps pay for property damage, legal expenses and medical costs – even if it’s a fatal accident. Many policies can reimburse you for the cost of a rental car and provide coverage for uninsured or underinsured motorists.
 

Do I Need Commercial Auto Insurance in My State?

Commercial auto insurance laws and requirements vary by state. When deciding on what types of business insurance you need, be sure to check with your local commercial auto insurance state laws to know what’s required.
 

Get a Quote for Commercial Auto Insurance Today

When it comes to keeping you and your employees safe on the road, business auto insurance goes the extra mile. The Hartford partners with Tivly to get you a fast and free quote. Call Tivly today at 855-559-1054.

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Additional disclosures below.
The Hartford shall not be liable for any damages in connection with the use of any information provided on this page. Please consult with your insurance agent/broker or insurance company to determine specific coverage needs as this information is intended to be educational in nature.
 
The information contained on this page should not be construed as specific legal, HR, financial, or insurance advice and is not a guarantee of coverage. In the event of a loss or claim, coverage determinations will be subject to the policy language, and any potential claim payment will be determined following a claim investigation.
 
Certain coverages vary by state and may not be available to all businesses. All Hartford coverages and services described on this page may be offered by one or more of the property and casualty insurance company subsidiaries of The Hartford Insurance Group, Inc. listed in the Legal Notice.
 
The Hartford Insurance Group, Inc., (NYSE: HIG) operates through its subsidiaries under the brand name, The Hartford, and is headquartered in Hartford, CT. For additional details, please read The Hartford’s Legal Notice.
 
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