Commercial Auto Insurance
Protect your small business with commercial insurance.
What Is Commercial Auto Insurance?
Commercial Auto Insurance protects businesses from the financial risks associated with owning, leasing, or using vehicles for work. Whether you operate a single service truck or an entire fleet, this coverage helps safeguard your company from the costs of accidents, lawsuits, property damage, and injuries that occur while vehicles are used for business purposes.
Who Needs Commercial Auto Insurance?
Contractors and Tradespeople
General contractors, electricians, plumbers, HVAC techs, roofers, and other trades rely on work trucks to transport tools, materials, and crews to job sites.
Delivery and Service Businesses
Companies that deliver goods, equipment, documents or provide services at customer locations need coverage for their vans, cars, and service vehicles.
Sales Professionals and Consultants
Employees who drive to meet clients, inspect properties, or attend job sites are using vehicles for business purposes, which typically isn’t covered under personal auto insurance.
Real Estate Agents and Property Managers
Frequent travel to listings, showings, and inspections is considered business use and may require commercial protection.
Transportation and Logistics Companies
Any business involved in freight movement, courier services, or regular transportation of goods needs dedicated commercial vehicle coverage.
Businesses with Employees Driving for Work
If employees use company vehicles for business errands, the business faces liability exposure.
Companies With Branded Vehicles
Any vehicle displaying a business logo or wrap is generally considered a commercial vehicle from a risk and regulatory standpoint.
How QuickBizQuote Helps California Employers Shop Smarter Commercial Auto
Independent Insurance Brokerage:
QuickBizQuote is not tied to a single carrier. That means we compare multiple top California markets to help business owners find coverage that fits their operations, budget, and growth plans.
We help you:
Understand the key differences between carriers
Explore pricing, class codes, and rating factors
Identify potential premium savings (experience mods, payroll adjustments, safety programs)
Avoid common mistakes that lead to unexpected costs or compliance issues
Secure fast, same day quotes.
Why does this matter in California?
California has some of the strictest auto insurance and liability requirements in the country. Businesses in the state face higher exposure due to:
High Traffic Density and Accident Rates
California consistently ranks among the highest in the nation for collisions and congestion, increasing the likelihood of claims.
State-Mandated Minimum Liability Requirements
California requires commercial vehicles to carry minimum levels of liability insurance. These limits may be significantly higher than what personal auto policies provide, especially for larger vehicles or vehicles used in certain industries.
Personal Auto Policies Often Exclude Business Use
In CA, most personal auto insurance carriers will deny claims if the vehicle was being used for work purposes when the accident occurred. Commercial Auto ensures your business is protected during all business-related driving.
Strict Employee and Employer Liability Rules
If an employee causes an accident while driving for work, the business can be held liable. California courts enforce this under “vicarious liability,” making Non-Owned Auto coverage essential.
High Medical and Legal Costs
California’s medical treatment and litigation costs are among the highest in the U.S., amplifying the financial impact of uninsured or underinsured business vehicle accidents.
Industry-Specific Requirements
Some industries such as contractors, transportation companies, and delivery businesses may be required to show proof of Commercial Auto coverage to obtain licenses, contracts, or permits.
What is Typically Covered with Commercial Auto?
Accidents Involving Company Vehicles
Covers bodily injury or property damage to others when a business vehicle is involved in a collision. Includes attorney fees and settlements if your business is held liable.
Physical Damage to Your Vehicles
Collision and comprehensive coverage help repair or replace your vehicle if damaged by an accident, theft, vandalism, falling objects, fire, or severe weather.
Injuries to Your Drivers or Passengers
Medical Payments (MedPay) or Personal Injury Protection (PIP) can cover medical treatment for occupants of the company vehicle, depending on state requirements.
Damage Caused by Uninsured or Underinsured Drivers
Pays for injury-related expenses or repairs when your vehicle is hit by a driver with no insurance or insufficient coverage.
Hired & Non-Owned Auto Liability
Provides liability protection when employees use personal vehicles for work, or when your business rents or leases vehicles for operations.
Legal Defense Costs
Pays for attorney fees, court costs, and other legal expenses for covered claims, even if the allegations are unfounded.
Towing & Roadside Assistance
Optional coverage that helps with breakdowns, flat tires, lockouts, and emergency towing.
Rental Reimbursement or Downtime Coverage
Covers temporary rental vehicle costs or provides compensation for lost business income when a company vehicle is out of service due to a covered loss.
What is NOT Typically Covered with Commercial Auto?
Personal Use of Company Vehicles (unless endorsed)
Most policies limit or exclude personal errands or non-business driving unless specifically allowed.
Employee-Owned Vehicles Regularly Used for Work
If employees frequently use their own vehicles for business, the company typically needs non-owned auto coverage; personal auto insurance may not cover business-related accidents.
Mechanical Breakdown or Wear & Tear
Routine maintenance issues, mechanical failures, and normal wear are not covered.
Tools, Materials, or Cargo Inside the Vehicle
Equipment and materials usually require separate Tools & Equipment or Inland Marine coverage.
Intentional Damage or Illegal Activities
Deliberate harm, reckless actions, or illegal use of a vehicle are excluded.
Rideshare, Delivery App, or Gig Use (unless endorsed)
Activities for services like Uber, Lyft, or DoorDash require specialized endorsements or separate commercial policies.
Business Activities Outside the Policy Scope
Tasks not listed under the insured use of the vehicle may not be covered, depending on the policy terms.