AutoInsurance.com
Icon CheckLast updated: December 13, 2022

The Best Commercial Auto Insurance

The best policies for businesses, delivery services, fleet owners, and employers

Best Overall Commercial Auto Insurance
Progressive Logo

Progressive has served more commercial auto insurance customers than any other provider in the country. In 2019, SNL Financial named Progressive as the number one commercial truck insurer in the country.

Best Commercial Auto Insurance for Fleets
Nationwide logo

If you’re looking for commercial auto insurance, Nationwide will have the coverage you need for your business. It serves half a million businesses all over the U.S. and covers a variety of vehicle types, including fleet coverage, delivery service vehicles, and rentals.

Whether for direct store delivery, landscaping, fleets, or large-scale construction, businesses all across the U.S. use commercial auto insurance to keep their businesses, employees, and vehicles protected. Commercial auto insurance provides you with coverage for any car accidents or damages incurred during business-related activities. It’s necessary because even if you’re using a personal vehicle, your personal auto insurance plan will not cover you or your employees during business operations.

With so many different types of businesses and commercial auto insurance options, it’s hard to know which provider to go with. That’s why we’re here. Below, we’ll cover everything you need to know about the best commercial auto insurance providers and their plans.

Summary of the Best Commercial Auto Insurance

  1. 1.

    Best Overall Commercial Auto Insurance: Progressive

  2. 2.

    Best Commercial Auto Insurance for Fleets: Nationwide

  3. 3.

    Best Commercial Auto Insurance for Large Businesses: The Hartford

  4. 4.

    Best Commercial Auto Insurance for Contractors: Farmers

  5. 5.

    Best Commercial Auto Insurance for the Public Sector: Travelers

Comparison of the Best Commercial Auto Insurance

Insurance company Average annual rates for drivers Bundling discounts (multi policy) Safe driver discount Umbrella Insurance J.D. Power overall customer satisfaction index (out of 1,000)1 Review
Progressive $1,508 Yes Yes Yes 859 Progressive review
Nationwide $1,614 Yes Yes Yes 858 Nationwide review
The Hartford $1,520 Yes No Yes 889 Coming soon
Farmers $1,878 Yes N/A Yes 862 Coming soon
Travelers $1,620 Yes No Yes 853 Travelers review

Detailed List of the Best Commercial Auto Insurance

1. Best Overall Commercial Auto Insurance - Progressive

What We Like Most:

  • Save up to 12 percent for insuring multiple cars
  • Coverage available for teen drivers and their parents
  • Rates 25 percent lower than the national average

Progressive writes more commercial auto insurance premiums than any other provider in the country, offers a long list of discounts, and is highly rated for customer satisfaction and customer service. It also has some of the most flexible coverage options, including protection for a wide range of vehicle types and customizable plans that fit a variety of business needs.

ProsWho It's Best For
  • pro
    Fleet owners
  • pro
    Truck owners
  • pro
    Safe drivers
  • pro
    Businesses with three or more vehicles
ConsWho It's Not Best For
  • con
    People who live in Washington, D.C.

Ample Discounts

Progressive offers a number of discounts that may apply to you and your business. Discounts for commercial auto insurance, similar to those for personal auto insurance, differ from state to state and business to business, so speak with an agent to see if any of the following discounts apply to you:

  • Business experience discount: Commercial auto business owners can earn a discount if they’ve been in business for more than three years.
  • Prior insurance savings: You could be eligible for additional savings if you’ve maintained your insurance for 12 consecutive months.
  • Package discount: If you have an in-force general liability plan or a business owner’s policy, you might be eligible for a package discount.
  • Paid-in-full discount: Save up to 15 percent off your plan if you pay your premium in one lump sum.
  • Electronic Funds Transfer (EFT) discount: Set up an automatic electronic payment account and you might be eligible for a discount.
  • Multi-policy discount: You could be eligible for a discount if you sign up for both personal and commercial auto insurance.

Great Incentives for Commercial Trucks

Snapshot ProView programs help you save by allowing Progressive to track your driving habits, routes, and other data points. The Snapshot ProView works the same way it would with personal insurance. Download the app (or plug in the device), start driving, and earn savings while the app tracks your habits. However, poor driving habits like speeding or slamming the brakes could increase your premiums, so sign up with caution.

New Progressive commercial truck customers can save an average of $1,106 with the Smart Haul Program. Every commercial truck and bus owner is required to install an electronic logging device that tracks metrics like your location, identification, route, and vehicle miles. If you allow Progressive to gather data from your device, you’ll earn some big savings.

Excellent Customer Satisfaction and Independent Ratings

Progressive is one of the most recognized commercial auto insurance businesses for its customer service ratings, national availability, and financial strength. It was awarded the number one spot on S&P Financial’s top truck insurance providers in 2019. And in 2022, AM Best gave Progressive an A+ rating (Superior) for financial strength, which is the second-highest rating an insurance company can receive.

2. Best Commercial Auto Insurance for Fleets - Nationwide

What We Like Most:

  • Discounts for taking a defensive driver course
  • Network of local agents
  • Usage-based insurance program for low-mileage drivers

Nationwide is a reputable and reliable provider of both personal and commercial auto insurance. With several tracking app functions, discounts, and safety features geared toward delivery trucks and vans, Nationwide is a great option for small businesses and direct store delivery owners with fleets. You’ll also get all the basic commercial protections (such as liability, collision, comprehensive, and uninsured motorist) and a number of add-ons for other commercial vehicle types.

ProsWho It's Best For
  • pro
    Fleet owners
  • pro
    Delivery businesses
  • pro
    Business owners with rentals
  • pro
    Safe drivers
ConsWho It's Not Best For
  • con
    Rideshare drivers
  • con
    People living in:
    • California
    • Delaware
    • Massachusetts
    • New Jersey
    • New York
    • Washington (Vantage 360 Fleet is not available in these states)

Free Telematics Incentive

If you own a fleet of vehicles for delivery or other services, you can sign up for Nationwide’s free telematics program, Vantage 360 Fleet. Vantage 360 Fleet allows you to track your drivers and alter schedules based on their locations and vehicle statuses. Nationwide incentivizes the program for both you and your drivers. You can earn up to 10 percent off your commercial auto policy with Vintage 360 Fleet, and your drivers can earn points for safe driving habits that they can redeem for gift cards.

Vantage 360 Fleet also helps reduce your claims and accidents rate. Seventy-four percent of drivers who used smartphone telematics apps had nearly 50 percent fewer claims and the claims they did make were less severe, making the program a win-win for everyone involved.2

FYI:


According to a 2022 GPS Insight Fleet Safety Report, fleet drivers get into an average of 4.5 accidents per year. Fleet drivers were at fault in more than 33 percent of those accidents.3

Several Coverage Options and Add-ons

Commercial auto insurance coverage protects you from many of the same events as personal insurance. An extensive plan will provide you with liability, comprehensive, collision, and uninsured/underinsured motorist coverage. On top of that, Nationwide also offers the following additional commercial coverage types:

  • Roadside assistance: If your drivers are met with an issue on the road — like a flat tire or dead battery — you can ensure they’re taken care of with roadside assistance.
  • New vehicle replacement coverage: If your new vehicle is declared a total loss, you can replace it with a new or comparable vehicle, or you can take advantage of gap coverage for any amount you owe that exceeds your car’s actual cash value.
  • Hired auto physical damage coverage: This coverage protects you from any comprehensive or collision damage to a leased or rented vehicle, as well as any contractual obligations to the leasing or rental company.
  • Rental reimbursement: Did you have a recent accident on a temporary vehicle rental? Rental reimbursement will pay for a car up to your policy’s limit.
  • Expanded towing: Expanded towing provides coverage for jump starts, minor roadside repairs, and towing costs.

Quick and Reliable Claims

Filing claims quickly is especially important for business owners who rely on their vehicles or fleets to keep their businesses running efficiently. Nationwide’s On Your Side Claims Service provides you with written guarantees on your repairs and a choice of qualified repair shops.

Like warranties, written guarantees can be huge benefits to business owners because they ensure a mechanic will repair or replace your vehicle within a specific period of time. The On Your Side Auto Repair Network includes repair shops that Nationwide has pre-screened and pre-qualified so you don’t have to worry about the quality or trustworthiness of your mechanic.

3. Best Commercial Auto Insurance for Large Businesses - The Hartford
The Hartford Logo

What We Like Most:

  • Coverage available in all states
  • Mechanical breakdown insurance available
  • Discounts for three years if you take a driver safety course

The Hartford, which started as a fire insurance company, has been providing insurance for over 200 years. It specializes in commercial auto insurance for large businesses, including construction, professional services, energy, wholesale distribution, and manufacturing. If you’re a large business owner with employees in and outside the U.S., The Hartford could be the best option for you.

ProsWho It's Best For
  • pro
    Businesses with employees and drivers overseas
  • pro
    Midsize to large businesses
  • pro
    People who need gap insurance
  • pro
    Business owners with hybrid electric vehicles or natural gas vehicles
ConsWho It's Not Best For
  • con
    Unsafe drivers
  • con
    Small businesses

International Coverage

If you have a fleet, manufacturing warehouse, distribution center, or other business operation overseas, you can benefit from The Hartford’s international coverage. With The Hartford’s commercial auto insurance for large business plans, you get worldwide liability coverage for drivers that goes beyond passenger cars. Your plan will cover truck drivers, delivery services, construction vehicles, and other vehicles in and out of the U.S. The Hartford also has a multinational claims number so you can speak to a representative for your international claims, 24/7.

Post-Accident Claims Coverage

Company-vehicle accidents can be a huge stressor for employers. They slow your business down, upset customers/clients, and are often expensive. The Hartford has three coverage add-ons that help speed your claims process and mitigate the losses to your business.

  • Downtime loss coverage (DLC): DLC coverage helps reimburse your business for any income lost if a company vehicle gets into an accident.
  • Rental reimbursement coverage: The Hartford will cover rental costs for a medium or heavy truck that needs repairs.
  • Towing coverage: If your company-owned vehicle breaks down on the road, The Hartford will cover your towing expenses.

SURPRISING STATISTIC


Vehicle breakdowns cost the U.S. economy more than $41 billion dollars per year. Businesses lose productivity from repair wait-times and traffic delays equivalent to 30 million employee workdays per year.4

Excellent Customer Satisfaction Ratings

J.D. Power awarded The Hartford with the highest overall customer satisfaction (889) among both midsize and large insurance providers. J.D. Power also gave it the highest ratings for insurance claims satisfaction based on responses from nearly 6,000 customers who filed claims within between April and December 2021.

The Hartford has several customer service numbers for specific claims, like a multinational line, windshield/glass-only claims, and catastrophe prep and support services (storms, hurricanes, tornadoes, or other events that might affect truck routes), which are all relevant to fleets and truck drivers. Whether you need to file a claim, prepare for an incoming natural disaster, or find a qualified repair shop, The Hartford’s representatives will be there to guide you through the process.

4. Best Commercial Auto Insurance for Contractors - Farmers

What We Like Most:

  • Good drivers can save money with the Signal app
  • Transportation costs covered when your vehicle is being repaired
  • Roadside assistance available

Farmers has all the basic coverage you’d want from a commercial auto insurance provider, but it also offers some specialized options for contractors like ice cream truck drivers and construction companies. With 90 years of experience, Farmers is a great option for businesses and contractors looking to cover their vehicles.

ProsWho It's Best For
  • pro
    Contractors and subcontractors
  • pro
    Food truck owners
  • pro
    Owners of vehicles that use diesel
  • pro
    Owners with employees who use their personal cars for business purposes
ConsWho It's Not Best For
  • con
    People who want gap insurance

Specialized Coverage for Contractors

Farmers caters to contractors who rely on expensive equipment to run their businesses. If you’re in construction, the food industry, or another service that requires you to carry equipment in your vehicle, Farmers can help you attain customized coverage that extends to your business related tools/equipment.

You can also sign up for primary and noncontributory coverage as a subcontractor. This type of coverage will pay for damages that you cause so the main contractor doesn’t have to. Non-contributory is important when there are several parties involved — like an owner, contractor, and subcontractor — and you want to ensure you have protection for any damages that you are responsible for.

Commercial Auto Designed for Food Trucks

Farmers designed coverage specifically for food trucks, which have some unique needs when it comes to commercial auto insurance. As a food truck driver, you have to worry about thefts and damages, the chance of your customers getting food poisoning, costly equipment malfunctions, and incurring income losses because your truck broke down.

Farmers helps mitigate these risk with the following food truck coverage features:

  • Mobile business interruption: Mobile business interruption coverage will reimburse you for any income lost when your truck is out of commission due to a covered loss.
  • Mobile food vendor insurance: You can get mobile food vendor insurance with Farmers, which protects any business property on your truck, equipment breakdowns, and security costs.
  • Premier package: Finally, you can sign up for Farmer’s premier package and increase your limits for food spoilage and foodborne illness. Whether you need to be reimbursed for the cost of food spoilage/equipment breakdowns or you are facing a lawsuit from a customer with a foodborne illness, the premier package has you covered.

DID YOU KNOW?


In a Boston-centered food truck study, nine of 96 food trucks were closed down after on-the-spot inspectors found food safety hazards. Although your provider won’t reimburse you for lost revenue due to a health inspection shutdown, quick claims on refrigeration and food storing equipment repairs can help prevent spoilage and foodborne illness.

Seamless Mobile Features

Farmers has a new and redesigned mobile app that will make managing your commercial auto insurance a lot more convenient. The new design has a sleek look and an easy-to-navigate menu page that lets you access your bills, payment options, policy documents, ID cards, claims requests, roadside assistance, and customer service agents.

We wanted to test the app’s advanced audio features, so we synced the app with Siri and tried to pay a claim. The process was as simple as asking Siri to pay a bill, answering Siri’s questions (when and how much we wanted to pay), and confirming the amount. That’s it.

We were also able to sync Alexa to the Farmers app for our non-iOS users. If you’re seeking a mobile- and tech-friendly insurance platform, Farmers won’t disappoint.

5. Best Commercial Auto Insurance for the Public Sector - Travelers

What We Like Most:

  • High financial strength rating from AM Best
  • Great customer service reviews
  • Discounts for safe drivers, homeowners, electric vehicle owners, and more

Travelers offers both general and specialized commercial auto insurance plans for businesses and the public sector, including commercial trucking insurance, public sector insurance, and oil and gas insurance. You can get coverage for fleets, public sector municipalities (law enforcement, emergency services, etc.), and mobile equipment for oil and gas companies.

ProsWho It's Best For
  • pro
    Public entities
  • pro
    Oil and gas company owners
  • pro
    Owners with trucks
  • pro
    Road and street maintenance vehicle owners
ConsWho It's Not Best For
  • con
    Food truck owners

Public Sector Commercial Auto Insurance

If you’re part of the public sector and are looking for solid coverage for vehicles, Travelers has a wide selection of coverage options. Travelers provides plans for the following public sector vehicles and equipment:

  • Ambulances
  • Auto insurance deductible reimbursements for employee firefighters and volunteers
  • Commandeered vehicles and their owners, like nonprofit groups with volunteers who need to drive cars to fulfill tasks
  • Emergency vehicles
  • Fire trucks
  • Radar and audio equipment
  • Road street maintenance vehicles
  • Window glass repair coverage

Travelers also offers specialized risk control services to help you navigate challenging insurance-related situations when a regular insurance agent doesn’t know the answer. Navigating a claim for a fleet, delivery service, or police car can have very different procedures and technicalities, so you can rest easy knowing a specialized Travelers risk control agent is ready to assist you when you need it.

Fleet Assistance Programs and Benefits

Northland, a division of Travelers, has been offering services to trucks and fleets for over 70 years. Whether you own a couple of trucks or a fleet of vehicles, Travelers has customizable plans for both small and large businesses. You can also benefit from Travelers’ fleet assistance programs like Fleet Safety TravSources, a one-stop shop with helpful informative resources, program guides, fleet safety checklists, and technical bulletins.

You can also access an interactive, web-based self assessment to help you find eligible fleet safety programs that fit your company’s qualifications. You’ll be able to access online safety programs and training classes for your pickup drivers, large-passenger van drivers, and medium to heavy trucks.

Solid Coverage for Oil and Gas Company Owners

Travelers offers industry-specific coverage for owners in the oil and gas industry. With more than 20 years in the industry and a team of risk control professionals who focus exclusively on oil and gas claims, Travelers has established itself as a leader in the industry. Businesses owners can benefit from a combination of specialized coverage to meet the unique needs of their businesses, including coverage for the following items:

  • Any commercial automobiles
  • Contractors’ equipment
  • Drilling equipment
  • Inland marine equipment
  • Oil rigs
  • Storage tanks
  • Trucks

Methodology

  • Variety and options: With all of the different business types, industry-specific plans, and commercial vehicles that require unique coverage options available, we wanted to provide business owners with a variety of qualified insurance providers with disparate specializations. Whether you’re a contractor, small business owner, large business owner, public sector member, or industry-specific owner, this list features some of the most reliable providers for a variety of drivers and business owners.
  • Third-party studies and ratings: One of the most reliable ways to assess the customer service and satisfaction ratings of a company is through an accredited independent party. That’s why we use only the most reliable third-party public studies to accompany our proprietary data. We look at AM Best, the Better Business Bureau, Moody’s, J.D. Power, S&P Global Ratings, the National Association of Insurance Commissioners, and other trusted industry leaders to gather information on customer satisfaction and the financial strength ratings of insurance providers.
  • Insider guidance: We consult directly with Paul Ford, the president of insurance services at Centerfield, AutoInsurance.com’s parent company. Paul has spent three decades in the insurance industry with tenures at Capital One Insurance Services, NetQuote, Bankrate, Datalot, and Canadian Access, among others. Paul’s extensive institutional knowledge and expert guidance help us provide customers with everything they need to find the perfect policies.

Frequently Asked Questions

How much does commercial auto insurance cost?

According to Progressive, the average cost of commercial auto insurance is $187 a month, or $2,224 annually. However, these numbers depend on your business type and insurance needs, so ask for a quote based on the coverage you need for your business.

When do I need commercial auto insurance?

You might need commercial auto insurance if you conduct services with your vehicles, transport goods or people in your vehicle for a price, carry expensive equipment or tools in a vehicle for business purposes, or operate a vehicle as an employee for business-related purposes.

What is the difference between commercial and personal auto insurance?

Personal auto insurance plans cover you and your vehicle for personal usage, and commercial auto insurance plans cover all business vehicles and employees who drive vehicles for business purposes.

Why is commercial auto insurance more expensive than personal car insurance?

Commercial auto insurance plans tend to be more expensive than personal plans because commercial plans generally have higher coverage limits. Additionally, commercial vehicles typically carry more equipment or involve large trucks/fleets of trucks, which require more coverage.

Citations

  1. Auto Insurance Rate Hikes Erode Price Satisfaction, Drive Surge in Value Shopping, J.D. Power Finds. J.D Power. (2022).
    https://www.jdpower.com/business/press-releases/2022-us-insurance-shopping-study

  2. Nationwide Vantage 360 Fleet offers a simple view of your fleet and your drivers. Nationwide. (2022).
    https://www.nationwide.com/business/insurance/telematics/vantage360fleet

  3. GPS Insight 2022 Fleet Safety Report. GPS Insight. (2022).
    https://www.gpsinsight.com/premium/2022-fleet-safety-report/

  4. VEHICLE BREAKDOWNS COST US ECONOMY $41B PER YEAR. Agero. (2019).
    https://blog.agero.com/vehicle-breakdowns-cost-us-economy-41b-per-year