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When shopping around for the best commercial car insurance, there are many different factors to consider and compare. This coverage is imperative for businesses that own vehicles or even send employees out on errands in their own vehicles, helping to protect the company against liability and loss following an accident, theft, or other incident.
While personal auto insurance can protect certain business pursuits (such as real estate agents and rideshare drivers), this coverage can be limited and may not fully protect you every time you get behind the wheel. And if your business allows others to drive a company-owned car, or you own multiple vehicles, commercial auto insurance is a must.
We compared more than a dozen different commercial car insurance carriers to see which ones offered the best coverage with the best features, at the best possible price. Read on to see which companies we recommend, and why.
The Best Commercial Auto Insurance of April 2023
- Best Overall: Progressive
- Best Value: Nationwide
- Best for Single Vehicles: Farmers
- Best for Fleets: The Hartford
- Best Customer Service: State Farm
- Our Top Picks
- The Hartford
- State Farm
- See More (2)
Best Overall : Progressive
Our top overall pick for the best commercial car insurance is Progressive. This wide-reaching carrier—already named the number-one commercial truck insurer in America—provides coverage for a very wide range of vehicle types, offers online quotes, and allows for an unlimited travel radius in most states. They also allow for seasonal policy changes to save on premiums during the off-season.
Available in all 50 states
Largest market share in U.S.
Offers coverage for nearly every vehicle type
Many discounts available
Allows for seasonal policy changes
Cannot buy coverage online
Need to work with an agent
Does not insure businesses with more than 20 vehicles
With a broad spectrum of coverage options across the entire country, it’s easy to see how Progressive made it to the top of our list. This carrier provides commercial auto insurance for nearly every business and vehicle arrangement, with a slew of discounts to choose from and the ability to change your coverage at any time without penalty.
Founded in 1937, Progressive is the number one commercial auto insurer in the United States in 2021, with an overall market share of more than 15%. They offer commercial coverage in all 50 states, with policies that protect a wide range of vehicles such as cars, light trucks, vans, SUVs, food trucks, dump trucks, and even tractor trailers, to name a few. They also offer an unlimited travel radius in most states, without increasing premiums.
Commercial auto protection can include a mix of liability (bodily injury and property damage), medical payments, underinsured/uninsured motorist coverage, collision, comprehensive, and even fire/theft. Progressive also has specialty coverage that not every carrier offers, such as hired auto, non-owned, and any-auto. This means that whether your business owns the vehicles, or your employees use their own vehicles to conduct business, everyone can be covered.
Progressive allows for coverage adjustments at any time, which can be helpful for seasonal businesses that might not need full protection all year long. They also make it easy to get discounts for safe driving, autopay, business experience, bundling policies, and paying in full.
According to Progressive’s website, commercial insurance premiums average about $183 per month, which includes both primary liability and physical damage coverage. Online quotes are offered for certain businesses, but you’ll need to speak with an agent in order to actually buy coverage. They offer 24/7 policy service over the phone or online, and filing a claim is easy to do over the phone, day or night.
To learn more about this carrier, you can read our full Progressive Car Insurance Review.
Best Value : Nationwide
With features such as new car replacement, loss of use protection, and commercial gap coverage, commercial auto insurance through Nationwide is our choice for best value.
Top-ranked in customer satisfaction
Wide range of coverage and deductible options
Submit claims online
Need to work with agent
No coverage for semis or tractor trailers
Not available in all states
Nationwide commercial auto insurance earns our nod for the best value in coverage, with a wide range of affordable policy options, valuable features, and deductibles as low as $0. This company currently serves 48 states and the District of Columbia, and has been providing insurance coverage since 1926.
Commercial car insurance through Nationwide is available on a variety of business vehicles including cars, cargo vans, work vans, box trucks, pickup trucks, and utility trucks; semi-trucks and tractor trailers are not covered, however. Quotes are available online or over the phone, but you’ll need to work with an agent in order to actually buy a policy.
With Nationwide, businesses can purchase coverage ranging from $300,000 to $1 million in combined single limit liability, with deductibles from zero to $1,000. Cargo and non-owner coverage is provided, too. Through the online quote portal, we found that a business owner could purchase $300,000 in liability coverage and $500,000 in uninsured motorist coverage for one vehicle (a 2018 Chevrolet Silverado), with a $500 deductible, for only $2,102 a year.
Optional features include new car replacement, roadside assistance, rental reimbursement, and even gap coverage for loans and leases alike. If you want to further protect your drivers and passengers, you can add medical payments and personal injury protection (PIP) coverage. Discounts through Nationwide include special pricing for bundling multiple policies, paying premiums in full, installing anti-theft devices, or having hybrid vehicles. Claims can be submitted online or over the phone.
Nationwide holds an A+ financial strength rating from AM Best and ranks seventh in customer satisfaction, according to the 2021 J.D. Power U.S. Small Commercial Insurance Study.
To read more about this carrier, check out our full Nationwide Auto Insurance Review.
Best for Single Vehicles : Farmers
If you’re looking for highly customizable commercial policies (especially when you only have one or two vehicles), Farmers is our recommendation, as this carrier offers specialized coverage options for non-fleet business customers across the U.S. while covering a range of different industries.
Offered in all 50 states
Highly specialized coverage options
Many industries covered
Top-rated mobile app
No online quotes
Need to work with agent
If you’re looking for commercial auto insurance for a single company vehicle, Farmers might be worth a look. This carrier provides policies to a large number of industries, with coverage that even extends to employees’ own vehicles (when driving for business purposes). They provide commercial auto protection in the form of liability, underinsured/uninsured motorist, and comprehensive policies.
Farmers offers coverage for specialized industries and losses, too. For instance, they can cover tools that are stolen from a contractor’s vehicle, as well as coverage for food spoilage or food-borne illness when insuring a food truck. This type of protection is often offered through separate BOP policies with some other carriers.
Online quotes aren’t offered through Farmers, and you’ll need to work with a local agent in order to price out and buy a policy. Discounts are somewhat limited but include discounts for bundling and safe driving habits, and claims can be submitted over the phone or online. The highly rated Farmers mobile app also gives policy owners access to their coverage anytime, from anywhere.
Farmers ranked fourth-place in the J.D. Power 2021 U.S. Small Commercial Insurance Study, in terms of customer satisfaction. The carrier holds an A- financial strength rating through AM Best.
To learn more about this carrier, you can read our full Farmers Auto Insurance Review.
Best for Fleets : The Hartford
With a special commercial insurance program for fleet owners—which includes safety devices and unique fleet discounts—The Hartford is our top choice for businesses with five or more company vehicles.
Coverage in all 50 states and District of Columbia
Specialized services and features for fleets
No online quotes
Limited options for single-vehicle policies
Our top choice for commercial fleet auto insurance coverage is The Hartford, a company that has been around since 1810. This carrier provides resources to businesses with fleet vehicles (five or more) to not only offer solid coverage but also help employees avoid accidents and reduce risk.
The Hartford provides a number of additional coverages free of charge, such as protection for leased or loaned vehicles, downtime loss coverage, glass repair deductible waivers, and coverage for electronic devices. They also make it easy to snag additional savings on your commercial fleet policy by offering discounts for multiple vehicles, paying in full, or being a safe driver.
Coverage options include liability, comprehensive, collision, uninsured/underinsured motorist, medical payments, and non-owner. They also have a FleetAhead program for business fleets, which uses wireless devices on vehicles to promote safety, manage incidents, and qualify for additional savings. No online quotes are offered, so you’ll need to call for information and pricing in your specific area.
Commercial car insurance coverage through The Hartford includes “drive other car” protection, for when employees and owners conduct business in personal, borrowed, rented, or leased vehicles. And if an incident occurs that requires claims against two different coverages (resulting in two deductibles), The Hartford will waive one of the deductibles.
Claims can be made 24 hours a day, seven days a week, either online or over the phone.
The Hartford currently holds an A+ financial strength rating from AM Best. They also ranked 10th for customer satisfaction in the J.D. Power 2021 U.S. Small Commercial Insurance Study.
To learn more about this carrier, you can read our full The Hartford Auto Insurance Review.
Best Customer Service : State Farm
With top customer satisfaction ratings, State Farm is our pick for the best customer service in commercial car insurance.
Top customer satisfaction ratings
Top financial strength ratings
ENOL and rideshare coverage offered
Available in all 50 states
Online quotes not offered
Need to work with agent
Limited policy options
Earning our top nod for commercial insurance customer service is State Farm. This carrier not only boasts second-place in the J.D. Power 2021 U.S. Small Commercial Insurance Study. State Farm had a well-below-average complaint index through the National Association of Insurance Commissioners (NAIC) in 2018 but in 2019 it rose to match the average and then shot up above in 2020.
Commercial insurance options include liability (bodily injury and personal property), medical payments, comprehensive, and collision coverage. They do offer additional coverage features such as employers non-owned car liability (ENOL), which extends policy coverage to employees’ own vehicles when driven for business purposes. This carrier also offers rideshare coverage options on personal auto insurance policies, saving many drivers from paying the higher premiums of a commercial policy.
Online quotes are not offered through State Farm, so you’ll need to work with an agent to get a quote and purchase coverage. Claims can be filed online, over the phone, or through their award-winning mobile app.
State Farm was founded in 1922 and offers policies in all 50 states and the District of Columbia. Not all policies, coverage options, or discounts are available in all states, so you’ll want to speak with your local agent to see what is offered for your business. The carrier currently holds an A++ (highest possible) financial strength rating from AM Best, as well.
To learn more about this carrier, you can read our full State Farm Auto Insurance Review.
Choosing the best commercial car insurance policy for your business depends on many personal factors, such as the number of vehicles your company owns, how much coverage you need, the nature of your business, and whether employees will use their own vehicles to run business errands. Certain insurance providers will be a better match for you based on whether you’re looking to insure a single vehicle, protect an entire fleet, or just want an all-around top carrier.
|Insurance Company||Why We Picked It||Key Benefit|
|Progressive||Best Overall||Unlimited travel radius in most states, #1 truck insurer, seasonal policy changes allowed|
|Nationwide||Best Value||Extra coverage features at no additional cost, many discounts to choose from|
|Farmers||Best for Single Vehicles||Special coverage options for specific industries, highly personalized policies|
|The Hartford||Best for Fleets||Unique programs, technology, and discounts designed just for fleets|
|State Farm||Best Customer Service||#2 in customer satisfaction, highest possible financial strength ratings|
How Does Commercial Auto Insurance Work?
Similar to personal auto coverage, commercial auto insurance provides protection for vehicles driven for business use, whether they are owned by the business or owned by employees. Policies can be liability-only or include collision, comprehensive, uninsured/underinsured motorist, medical payments, and even personal injury protection (PIP) coverage.
Why Do I Need Commercial Auto Insurance?
Whether your business manages a fleet of vehicles or occasionally sends employees out on errands, a commercial auto insurance policy will protect you and your company from loss. If you or your employees are involved in an accident, your company could be held liable and, as a result, be at risk of a lawsuit.
Additionally, certain industries require vehicles that have unique needs and features. For instance, the vehicles owned by a construction company may be larger, heavier, or more expensive than a typical car, resulting in greater loss following an accident. Or, a restaurant might need commercial coverage against food spoilage during catering deliveries.
Personal auto insurance policies typically exclude business-owned vehicles or personal vehicles that are driven for business purposes, so a commercial auto insurance policy is needed to ensure that your company is always protected.
Is Commercial Auto Insurance More Expensive?
Because commercial vehicle use involves more risk, commercial auto insurance policies tend to be more expensive than comparable coverage limits on personal auto insurance policies. However, the cost of commercial auto insurance will depend on the number of vehicles insured, the coverage limits and deductibles chosen, your business’s location, and even the travel radius of your drivers.
How We Chose the Best Commercial Car Insurance
In order to help you decide on the best commercial car insurance companies, we evaluated more than a dozen different carriers. We compared factors such as availability, customer satisfaction ratings, pricing, financial strength ratings, and coverage options. We also considered the ease with which business owners can purchase a policy, make changes to their coverage, and file a claim if needed.
National Association of Insurance Commissioners. "NAIC Releases 2021 Market Share Data," Download "Property/Casualty Market Share Report," Page 7.
AM Best. “AM Best Places Provident Mutual’s Financial Strength Ratings Under Review Pending its Sponsored Demutualization by Nationwide.”
J.D. Power. "2021 U.S. Small Commercial Insurance Study."
AM Best. “The Farmers Automobile Insurance Association.”
AM Best. “Hartford Fire Insurance Company.”
NAIC. "State Farm Fire & Casualty Co."
AM Best. “AM Best Affirms Credit Ratings of State Farm Mutual Automobile Insurance Company and Most of Its Subsidiaries.”