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If you or your employees use your vehicles for business purposes, your business will be held liable for damages and injuries that occur from an accident. That’s why business owners need to buy commercial car insurance to provide liability coverage, uninsured and underinsured motorist coverage, and collision and comprehensive coverage. If your business uses multiple vehicles for work purposes, commercial fleet insurance is also available and may be more affordable than insuring cars individually.
To help you narrow down your options, we evaluated nearly two dozen commercial car insurance providers based on their reputation for financial strength and customer service, their coverage offerings, and any available discounts or other features they provide.
The Best Commercial Car Insurance for 2022
Best Overall: Progressive Commercial
Why We Chose It: Progressive Commercial is the largest commercial auto insurer and has great financial strength ratings and options for a variety of types of businesses.
A+ financial strength rating with AM Best
Extra coverages included at no cost
Lower-than-average rating in J.D. Power’s 2020 U.S. Auto Claims Satisfaction Study
Slightly higher-than-average number of complaints with the NAIC
Most businesses will be able to get what they need from Progressive Commercial, the largest commercial auto insurer in the nation. Progressive has been around since 1937 and has an A+ financial strength rating with AM Best. Though the insurer has a slightly higher-than-average number of complaints for a company of its size with the National Association of Insurance Commissioners (NAIC), other large providers fare much worse. However, it’s important to note that the company’s claims satisfaction ranking with J.D. Power was below average.
Still, Progressive offers great coverage for an average cost of $187/month. The company includes extras like pet injury coverage and an individual named insured endorsement, which applies your coverage to rented vehicles, at no additional cost. Specialty coverage like non-owned car insurance is also available for employees who may use their personal vehicles for business use.
You can get a quote and apply for a policy online or find a local agent.
While Progressive is geared toward small businesses, corporations can also get fleet insurance through Progressive and get access to free fleet management insights.
Best for Small Businesses: State Farm
Why We Chose It: State Farm has top financial strength and claims satisfaction ratings along with an employer’s non-owned car liability policy.
A++ financial strength rating from AM Best
Ranked above average in J.D. Power’s 2020 Auto Claims Satisfaction Study
Slightly higher-than-average number of complaints with the NAIC
No online quotes
Founded in 1922, State Farm is a reputable commercial auto insurance provider with an A++ financial strength rating from AM Best and good ratings for claims satisfaction from J.D. Power. The company has a complaint index of 1.52 with the NAIC, indicating a slightly higher-than-average number of complaints for a company of its size, but fares better than many other insurers. Another drawback is that you’ll need to speak to an agent to get a quote and apply for a policy, and cost estimates aren’t available online.
State Farm includes property damage and bodily injury liability coverage, medical payments coverage, collision, and comprehensive coverage, and uninsured/underinsured motorist coverage in their basic policy.
Best for Large Businesses: The Hartford
Why We Chose It: The Hartford has a great reputation for financial strength and claims satisfaction and offers unique solutions to mid-size and large businesses.
Few complaints with the NAIC
Options for fleets designed to minimize risk
A+ financial strength rating with AM Best
May only write policies for multi-line accounts
The Hartford has a risk engineering team dedicated to reducing the risk of accidents for fleet owners, along with customizable policies, which makes the provider ideal for large businesses. For example, fleet owners can use telematics to identify risky driving behavior and provide driving education to employees.
The Hartford prefers to write policies for multi-line accounts, but they will consider single-line commercial auto insurance. The average cost across eight industries for policies from The Hartford is about $1,500 annually. You’ll need to speak to an agent to get a quote and start the application process.
The Hartford has been around since 1810 and has an A+ financial strength rating with AM Best. The company was also ranked fourth in J.D. Power’s 2020 Auto Claims Satisfaction Study. For the past three years, The Hartford has also drawn only about one-third of the number of complaints considered average for a company of its size. Together, these factors indicate a strong reputation for customer service and claims payment.
Best for Discounts: Next Insurance
Why We Chose It: Targeted at small businesses, Next Insurance offers great bundling discounts and has an easy online quote and application process with awesome customer service ratings.
Easy online quotes
Tailored policies to individual professions
Up to 10% off when you bundle
Commercial fleet coverage not available
Founded in 2016, insurtech startup Next Insurance is designed to provide commercial auto and other coverages to small businesses and independent contractors. Next Insurance boasts that you can save up to 30% when you switch and up to 10% when you bundle multiple policies. Prices are affordable and you can opt for monthly payments at no extra cost. For example, commercial auto insurance for a handyman starts at $25/month. They also offer liability insurance, worker’s compensation, property coverage, tools and equipment coverage, and more. Additionally, you can add hired and non-owned auto insurance to your commercial auto insurance policy.
Next makes it easy to get a quote and apply for coverage completely online or you can call an agent for one-on-one help. Customer service reviews are excellent across all platforms and few complaints have been filed with the NAIC in recent years. Policies are backed by Munich R.E., which has an A+ financial strength rating with AM Best. Next Insurance is not rated by J.D. Power.
Best for Total Business Insurance: THREE by Berkshire Hathaway
Why We Chose It: THREE offers a simple, jargon-free, all-in-one policy for small businesses that provides six different types of coverage for a lower cost than buying separate policies.
Few complaints with the NAIC
A++ financial strength rating with AM Best
Few customization options
Not ideal for large businesses
If you’re looking for a simple policy that covers everything your business needs, THREE by Berkshire Hathaway fits the bill. As the name suggests, it’s a three-page policy, free of jargon, which includes coverage for business liability, business interruption, cyber, worker’s compensation, property and assets, and business auto. While you can’t pick and choose which types of coverage are included, you will have control over your deductible and limits.
You can get an online quote from THREE as well, or call an agent to help you compare the three-page policy to traditional insurance policies.
Berkshire Hathaway has been in business since 1839 and has an A++ financial strength rating with AM Best. The company also has far fewer than the average number of complaints for a company of its size with the NAIC. Berkshire Hathaway isn’t rated by J.D. Power, and customer service reviews are difficult to find. However, it’s nice to know you get a dedicated account manager when you file a claim, and THREE promises to provide you with assistance getting the services you need to keep your business up and running if a loss occurs.
Best for Rental Agencies: Zurich
Why We Chose It: Zurich is a reputable insurance provider that specializes in commercial fleet insurance for rental agencies.
24/7 fleet management portal
Few complaints with the NAIC
Risk engineering services
No online quotes or application
No pricing info available online
Founded in 1872, Zurich Insurance specializes in commercial fleet policies for businesses of any size that rent passenger vehicles, RVs, and vans. Zurich packages fleet and counter products so you can offer insurance to customers as well. The insurer has an A+ financial strength rating with AM Best and a complaint index of only 0.52 with the NAIC, which indicates far fewer complaints than average for a company of its size.
You won’t be able to get a quote or apply online, but once you’re a customer, you’ll have access to 24/7 fleet management where you can view activity in real time. Zurich also employs a risk engineering team that provides insights and training solutions designed specifically for auto rental companies. There’s also a Major Loss team there to assist with keeping your business running if many vehicles sustain damages at once.
While all the providers we chose have great coverage, Progressive Commercial stood out to us because it is the largest commercial auto insurance provider and offers extras at no additional cost.
The best commercial car insurance for your business will depend on several factors, including the size of your fleet, which vehicles your employees use, and how often they drive. You should compare quotes from multiple insurers to find the most affordable rates. Most commercial auto insurers offer full coverage policies with add-ons to meet your needs.
|Best Commercial Car Insurance|
|Insurer||Why We Picked It||Financial Strength Rating (AM Best)||Online Quotes?|
|Progressive Commercial||Reputable provider with no-cost extras||A+||Yes|
|State Farm||Great reputation for financial strength and claims satisfaction||A++||No|
|The Hartford||Unique risk-mitigation tools for mid-size to large businesses||A+||No|
|Next Insurance||Great bundling discounts and easy online process||A+||Yes|
|THREE by Berkshire Hathaway||Simple, jargon-free, all-in-one policy||A++||Yes|
|Zurich||Specialized insurance for rental car agencies||A+||No|
What Is Commercial Car Insurance?
Commercial car insurance provides coverage for a vehicle used for business purposes. If you use your car to make deliveries, visit customers, drive between work sites, or otherwise run your business, you’ll need commercial car insurance.
How Is Commercial Car Insurance Different From Personal Car Insurance?
Commercial car insurance is similar to personal car insurance in that it financially protects you or your employee in the event of an accident. However, although commercial car insurance covers your vehicle for personal use, personal car insurance does not cover your vehicle for business use.
If you or your employee is in an accident while a vehicle is being used for business purposes, the damages may not be covered by a personal auto insurance policy. That’s why it’s important to purchase commercial car insurance if you use your car for any work duties other than commuting to and from your place of employment.
Who Needs Commercial Car Insurance?
You may need commercial car insurance if any of the following are true:
- Your personal policy doesn’t cover your vehicle type or business use
- You transport people or items in your car as part of your business
- You transport tools or equipment in your car used for your business
- The vehicle title is in the name of your business
- You require higher liability limits
Most people who use their car for any other business purpose besides commuting will need commercial car insurance. Some car insurance companies also offer rideshare insurance specifically for on-demand rideshare drivers, which is typically cheaper than commercial car insurance. If you’re a rideshare driver, you may be able to save by selecting one of these policies. But your personal auto policy will likely not cover you while you’re working.
What Does and Doesn’t Commercial Car Insurance Cover?
Commercial car insurance typically provides full coverage with high limits. Most policies include:
- Bodily injury and property damage liability coverage
- Medical payments coverage
- Comprehensive and collision coverage
- Uninsured/underinsured motorist coverage
Commercial auto insurance does not typically cover an employee using a personal vehicle or rental for work purposes. However, most companies offer hired and non-owned car insurance, which you can add to your commercial car insurance policy for added protection. Commercial auto insurance also excludes worker’s compensation coverage, which you’ll likely need to purchase separately or in a bundled policy.
How Much Does Commercial Insurance Cost?
For a $1 million policy limit, the median cost of a commercial auto insurance policy is $1,704 annually, according to Insureon. However, about 44% of small business owners pay less than $1,500 annually for their policies. Costs vary widely based on the types of vehicles insured and driving frequency.
Your industry will also influence how car insurance providers assess your risk and determine your premium. Most commercial car insurance providers don’t offer anonymous online quotes, so be prepared to provide detailed information online or speak to an agent. You should also compare quotes from at least a few different commercial car insurers to get the best price for your business.
Is a Non-Employee Covered by Commercial Car Insurance?
If a driver is not listed on the policy, in most cases they won’t be covered. Friends and family members typically won’t be covered if driving your company car. The only exception is that commercial auto insurance offers coverage for anyone who would be considered liable in an accident, even if they’re not an employee.
You can also add personal coverage to your business vehicle if you are a sole proprietor and have an individual named insured endorsement. With this coverage, your family may also be covered in certain circumstances.
How We Chose the Best Commercial Car Insurance
We evaluated nearly two dozen commercial auto insurance providers based on financial strength, customer service and claims satisfaction, coverage offered, and discounts provided. We also paid attention to any unique features provided and gave preference to companies that had some pricing information online or provided online quotes.
All of the companies we featured had great financial strength ratings (A+ or A++ from AM Best) and full coverage policies with plenty of options to meet the needs of small businesses.
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Business Wire. "AM Best Affirms Credit Ratings of The Progressive Corporation and Its Members.” Accessed Oct. 12, 2021.
NAIC. "Progressive Cas Ins Co National Complaint Index Report." Accessed Oct. 12, 2021.
J.D. Power. "2020 U.S. Auto Claims Satisfaction Study." Accessed Oct. 12, 2021.
Business Wire. "AM Best Affirms Credit Ratings of State Farm Mutual Automobile Insurance Company and Most of Its Subsidiaries." Accessed Oct. 12, 2021.
NAIC. "State Farm Fire & Cas Co National Complaint Index Report." Accessed Oct. 12, 2021.
- Business Wire. "AM Best Affirms Credit Ratings of The Hartford Financial Services Group, Inc. and Subsidiaries," Accessed Oct. 12, 2021.
NAIC. "Hartford Cas Ins Co National Complaint Index Report." Accessed Oct. 12, 2021.
NAIC. "Next Ins US Co National Complaint Index Report." Accessed Oct. 12, 2021.
Business Wire. "AM Best Confirms Credit Ratings of Munich Reinsurance Company and Its Subsidiaries." Accessed Oct. 12, 2021.
Business Wire. "AM Best Affirms Credit Ratings of Berkshire Hathaway Homestate Insurance Company and Its Affiliates." Accessed Oct. 12, 2021.
NAIC. "Berkshire Hathaway Direct Ins Co National Complaint Index Report." Accessed Oct. 12, 2012.
Business Wire. "AM Best Revises Issuer Credit Rating Outlook to Positive for Zurich Insurance Group Ltd and Its Main Rated Subsidiaries." Accessed Oct. 12, 2021.
NAIC. "American Zurich Ins Co National Complaint Index Report." Accessed Oct. 12, 2021.