July 14, 2025
Commercial Auto Insurance
How Much Does Commercial Auto Insurance Cost?
If your business relies on the use of vehicles for regular activities like transporting goods, carrying equipment and visiting clients, it is essential to ensure having commercial auto insurance. Every business investment requires allocating a budget even for necessary expenses like insurance premiums.
So, if you’re planning to purchase commercial auto insurance for your business, it is important to know how much commercial auto insurance costs, especially for making a proper budget plan.
What is the Average Cost of Commercial Auto Insurance?
The average cost of commercial auto insurance can range from $147 per month for small businesses to $1041 per month or more for large enterprises typically depending on the number of vehicles and extent of coverage that you need to insure. So, that means the average annual cost of commercial auto insurance ranges from $1,764 to $12,492.
Based on the significant difference in commercial auto insurance rates, it mainly varies as small businesses typically have fewer vehicles, while larger businesses often maintain fleets, requiring broader coverage.
Typically, the national average cost of commercial auto insurance does not reflect actual premiums as your company’s insurance rate depends on various individual factors. However, the varying range can help you interpret a broad estimate based on which you can set a standard commercial auto insurance budget.
Commercial Auto Insurance Costs by State
Commercial auto insurance rates can significantly vary from one state to another due to differences in insurance requirements, state laws, traffic infrastructure, number of roads, and highways, crime rates and most importantly the number of accidents and insurance claims.
Usually, states that have a higher population density have more vehicles on the road leading to more accidents and insurance claims. Typically states with higher number of accidents and crime rates have increased insurance claims leading to higher commercial auto insurance rates.
The table below presents the average cost of commercial auto insurance in 7 U.S. States based on factors like vehicle type, business usage, driver history, and coverage limits.
State | Average Annual Commercial Auto Insurance Rate per Vehicle | Monthly Estimate | Notes |
Arizona | $800 – $2,000 | $67 – $167 | Costs vary based on vehicle type and business usage. |
Colorado |
$800 – $1,500 |
$67 – $125 | Larger fleets may pay more; premiums depend on vehicle type and usage. |
Florida | $1,200 – $3,370 | $100 – $281 | High rates due to accident frequency and insurance fraud. |
Georgia |
$1,388 – $5,000 |
$116 – $417 | Rates are influenced by vehicle type, business nature, and location. |
Michigan | $1,200 – $2,400 | $100 – $200 | Rates depend on business type, vehicle class, and coverage limits. |
Nevada | $2,892 | $241 | Based on an average monthly premium; actual costs vary. |
Texas | $1,200 – $2,500 | $100 – $208 | Rates vary by city and business type; fleet size impacts cost. |
If you're looking for a reliable insurance agency that offers affordable commercial insurance in several states including Arizona, Colorado, Florida, Georgia, Michigan, Nevada, and Texas, you should consider checking our tailored commercial insurance solutions.
Commercial Auto Insurance Cost by Industry
The cost of commercial auto insurance can widely vary across industries due to differing levels of operational needs and risks associated. Businesses that use cars such as sedan cars, and SUVs for employee transportation have lower risks compared to businesses that use trucks for distributing hazardous products such as chemical substances.
Here’s a breakdown of commercial auto insurance rates across different industries according to Progressive Commercial.
Industry | Average Premium Per Month | Average Premium Per Year |
Business Auto | $270 | $3,240 |
Contractors | $257 | $3,084 |
For-Hire Specialty Truck | $767 | $9,204 |
For-Hire Transport Truck | $1,041 | $12,492 |
Tow | $600 | $7,200 |
Commercial Auto Insurance Cost by Vehicle Type
The cost of repairing, or replacing commercial vehicles typically depends on their type, make and model. For instance, the repair/replacement cost of a sedan will significantly vary compared to a delivery van or semi-truck.
So, that’s why when it comes to estimating the cost of commercial auto insurance, it is crucial to consider the type of vehicle. Here’s the average cost of commercial auto insurance based on vehicle type as follows.
- Sedan Car: $600 to $2400 per year
- Cargo or Delivery Van: $3,300 to $6,200 per year
- Semi-Truck: $8,000 to $12,500 per year
- Limousine: $4,000 to $10,000 per year
- Taxi: $5,000 to $10,000 per year
What Affects Commercial Auto Insurance Rate?
Commercial auto insurance rates are influenced by several factors such as the number of vehicles your business owns, types of vehicles, employee driving records, insurance claims history, choice of coverage, miles driven, location, and industry.
Here’s a detailed overview of each factor that can affect your commercial auto insurance rate as follows.
Number of Company Registered Vehicles
Typically, your commercial auto insurance rate mainly depends on how many company vehicles you need to insure. That’s the reason, the cost of commercial auto insurance is significantly lower for small business compared to large enterprises. Small businesses usually have a single or a few vehicles whereas mid-large businesses have an entire business fleet of sedan cars, SUVs, trucks etc.
Make, Model and Types of Business Vehicles
The make, model and type of your business vehicle plays a vital role in determining your commercial auto insurance rate. For instance, the average cost of repairing a sedan car costs around $1,000, whereas repairing a semi-truck can cost around $5,000 to $15,000 or more. On top of that, if you need to replace the vehicle it can incur hefty costs ranging from an estimate of $20,000 to $100,000 or above.
Driving Record of Employees
Your insurer will evaluate the driving records of all your business employees to determine your commercial auto insurance rate. As business employees drive company owned vehicles, driving records reflect how likely they’re prone to getting into an accident.
So, if your company has employees with good driving records, then it increases your chances of getting a cheap commercial auto insurance rate. Similarly, poor driving records can significantly increase your commercial auto insurance rate due to the likelihood of more insurance claims.
Insurance Claims History
Insurance claims history is the most significant factor that insurers consider when it comes to determining commercial auto insurance premiums. The more you, or your employee, claim your commercial auto insurance, the higher your insurance premium is likely to be in the following years.
Typically, insurance companies evaluate insurance claims history of the past 3 years to determine your new commercial auto insurance rate. If you’re getting commercial auto insurance for the first time, then your insurer might review the personal insurance claims history of you and your employees to determine the chances of future claims.
Choice of Coverage
Your commercial auto insurance premium mainly depends on the types of auto insurance coverage you purchase along with their limits. If you opt for more coverage with higher limits, then you will have to pay a higher rate. That’s the reason large enterprises may require expensive insurance coverage worth $1,000 or more. Whereas small companies spend about $100 to $150 on average for commercial auto insurance.
Miles Driven
Another significant factor that determines commercial auto insurance rate is the extent to which the vehicles are used. Usually, vehicles that are used for business activities are extensively used. The more your vehicles are on the road, the higher the chances of getting into an accident.
So, that’s why vehicle usage is among the key factors when it comes to determining commercial auto insurance rates. Vehicle usage is determined by measuring miles driven. Insurance rates can significantly increase if you have an annual record of 7500 per year.
Location
Your commercial auto insurance rate is also influenced by the area you’re located in. Location based factors such as population density, crime rate, frequency of road accidents and insurance claims impact commercial auto insurance rates.
Businesses operating in high-risk zones, typically areas with a high number of car accidents, and crime rate face increased premiums. Whereas businesses that operate in remote or rural areas with lower traffic and crime rate have a significantly lower commercial auto insurance rate.
Personal Auto Insurance vs. Commercial Auto Insurance Costs: Is Commercial Auto Insurance More Expensive?
Yes, commercial insurance is significantly more expensive than personal auto insurance. Personal auto insurance is generally limited to covering a single vehicle or a few vehicles under the same policy. Commercial auto insurance on the hand is designed to cover multiple vehicles which can range from a few to several vehicles.
Plus, commercial vehicles are commonly used much more extensively compared to commercial vehicles, that’s why personal auto insurance is cheaper than commercial auto insurance on average.
In comparison, the average cost of full coverage personal auto insurance ranges from $2,100 to $3,900, whereas commercial auto insurance premiums can range from $1,764 to over $12,500 per year.
So, based on the highest cost comparison, commercial auto insurance is significantly much more expensive than personal auto insurance.
How to Lower Your Commercial Auto Insurance Rate?
It can be difficult to adjust your budget with a high commercial auto insurance rate, and if it’s on the rise with each passing year, it can put a substantial toll on your business’s finances.
So, if you’re struggling with expensive premiums, here are some useful tips to lower your commercial auto insurance rate as follows.
- Prioritize hiring experienced drivers with a clean driving record
- Encourage your employees to maintain a good driving record
- Get your employees to attend safe driving course
- Opt for bundle plans, and discounts
- Avoid claiming insurance for minor accidental damages
- Maintain your vehicles regularly
- Install anti-theft devices and dashcams
- Pay insurance premiums annually at once, if it’s possible
- Consider increasing your deductibles
- Shop around, and compare quotes with different insurers
The Bottom Line
Commercial auto insurance is a critical business investment, and that’s why it’s essential for you to understand the factors and variables that influence your premiums, especially when you’re planning your annual auto insurance budget.
Plus, it’s also necessary to carefully analyze the current market conditions for a more accurate estimate of commercial auto insurance premiums to ensure that you’re getting the best value for coverage.
If you need help figuring out your commercial auto insurance costs, you can contact us for a free quote or find an agent nearby for a detailed consultation.
Frequently Asked Questions (FAQ)
How much does commercial insurance cost per month?
On average commercial auto insurance can cost you $147 per month for small businesses to $1041 per month or more for large enterprises.
How to get the cheapest commercial auto insurance?
To get the cheapest commercial auto insurance, start by comparing quotes from multiple insurers and tailor your coverage to fit your actual business needs avoiding unnecessary extras. Opting for a higher deductible, paying annually, and bundling policies are also effective ways to reduce your commercial auto insurance premiums.
Which state has the cheapest commercial truck insurance?
Mississippi has the cheapest commercial truck insurance with an average local premium of $3,552, whereas the annual commercial truck insurance rate in other states is all above $4,900 and beyond.
How is commercial auto insurance calculated?
Commercial auto insurance rate is calculated using key risk factors such as vehicle usage, vehicle type, number of vehicles owned by your company, employee driving records, insurance claims history, choice of coverage, and location.
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