Cheapest commercial auto insurance in 2025

Cheapest commercial auto insurance by state

One of the factors that affects your commercial car insurance premiums is your location.

According to data from small-business insurance broker Insureon, the national average annual premium for small business owners is $1,764. But, in some states, the average premiums are much lower. Below is a list of the cheapest commercial auto insurance rates you’ll find in the 25 most populous states: 

*Average annual premium based on Insureon data

By contrast, commercial auto policies tend to be more expensive on the East Coast and in the southern states. Below are the highest average premiums you’ll find in the 25 most populous states: 

*Average annual premium based on Insureon data

Cheapest commercial auto insurance by business type

The cost of commercial auto policies vary by vehicle use, employee driving records, how many miles you drive and other factors, including the type of business you operate. 

Businesses involved with building design and professional services like event planners tend to have lower premiums. Unsurprisingly, businesses in the trucking industry tend to pay the most due to the higher value of their vehicles and their increased annual mileage.

Below is a list of the professions with the cheapest rates:

*Average annual premium based on Insureon data

Below is a list of the professions with the most expensive rates:

*Average annual premium based on Insureon data

Where to find the cheapest commercial auto insurance

Not every insurer does business in every state. However, the largest commercial auto insurance carriers usually offer coverage in the majority of the country. Below is a list of the top 10 commercial carriers based on direct premiums written, as recorded by the National Association of Insurance Commissioners (NAIC), an insurance regulatory organization. 

1. Progressive
2. Travelers
3. Old Republic
4. Liberty Mutual
5. Berkshire Hathaway
6. Zurich
7. Auto-Owners
8. State Farm
9. W.R. Berkley
10. The Hartford

How much is the average commercial auto insurance policy? 

On average, commercial auto insurance policies cost $1,764 per year, or $147 per month, according to Insureon. However, prices vary significantly by location, the type and number of vehicles you insure and other factors. 

Factors that influence commercial auto insurance costs

Insurance companies base your commercial auto premiums on the following factors: 

• Coverage type: In most states, the only form of insurance you’re legally required to have is liability coverage. If you opt for full coverage with collision and comprehensive insurance — or add on options like rental car reimbursement — you’ll pay a higher rate. 
• Insurance policy limits: When you buy a policy, you can choose how much liability coverage you want; in general, it’s wise to choose a limit enough to cover your business’ assets. The higher your coverage limit, the higher your premiums will be. 
• Industry: Some industries have higher levels of risk than others. For example, those involved in trucking or construction tend to spend more time on the road and use higher-value vehicles, so insurance companies charge them higher rates. 
• Location: Areas with high costs of living, more traffic congestion and higher levels of uninsured drivers will have higher premiums. 
• Driver history: The driving history of you and any of your employees who get behind the wheel can affect your rates. If you have any drivers with histories of speeding tickets, at-fault accidents or driving under the influence convictions, expect much higher premiums. 

How to get the cheapest commercial auto insurance

If you’re looking to save on commercial auto insurance coverage, there are several ways to qualify for discounts and reduce your premiums. For example: 

1. Ask about discounts: Depending on your insurance company and business, you may be eligible for discount programs. Talk to your insurance agent or your company about what discounts are available. For example, your business may qualify for paid-in-full or claims-free discounts. 
2. Adjust your deductible: Your commercial auto insurance deductible is how much you have to pay for repairs or damages before your insurer will cover the claim. Raising your deductible — for example, increasing it from $500 to $1,000 — will reduce your monthly or annual premium. 
3. Sign up for telematics: Telematics programs can be especially helpful for business owners. Using mobile apps or devices to track vehicle usage and employees’ driving habits, these programs can help your business reduce commercial auto insurance costs. 
4. Bundle coverage: As a business owner, you likely need several forms of insurance, such as a business owners’ policy, cyber liability and commercial auto coverage. If you purchase multiple forms of insurance through one insurer, you could qualify for a multi-policy discount.
5. Shop around: Commercial auto insurance rates vary by location, vehicle type, company and other factors. If you feel like your coverage is too expensive, request quotes from several insurance companies to compare your options. You may find that you can save hundreds by switching insurance companies. 

Work with an agency that has access to a variety of carriers and can compare rates on your behalf, Tortorici says. “A good agent will help you balance affordability with the coverage you truly need,” she says.

Why do small businesses need commercial auto insurance?

Whether you use your own car for the occasional delivery or own several cars exclusively for business use, you need a commercial auto insurance policy. 

“Commercial coverage offers higher liability limits, protects employees, and covers work-related use,” Tortorici says. “Personal policies can deny claims if the vehicle is used for business.”

Commercial auto policies provide essential protection. For example, say your company delivers cakes in your city. Your delivery driver got distracted and rear-ended a car at a red light, and the other driver was injured and his car was damaged. 

Without a commercial auto policy, you risk the insurer denying the claim, which could leave you responsible for the injured driver’s medical bills and property damage and can cost thousands. 

Even if you’re a solopreneur, commercial auto insurance is important. (You can learn more about sole proprietor business insurance here.)

“Not only would it [a commercial auto policy] offer more robust liability protection, but it would also help cover the goods in transit — something a personal policy typically doesn’t do,” Tortorici says. 

What our expert says

Q: Why do small businesses need commercial auto insurance?

Erika Tortorici
Founder and principal of Optimum Insurance Solutions

“Commercial coverage offers higher liability limits, protects employees, and covers work-related use. Personal policies can deny claims if the vehicle is used for business.”