What Is Commercial Auto Insurance, And Why Do You Need It?

Having the right insurance coverage is vital to protecting you and your assets. One such coverage is a commercial auto insurance policy. But how can you tell whether or not you should take commercial auto insurance coverage? While most people understand the need for personal auto insurance coverage, they have no idea if they need commercial vehicle insurance. This article explains the meaning of commercial auto coverage and why you may need it. 

What Is Commercial Auto Insurance?

A commercial auto insurance policy provides liability and physical damage coverage for all usage, amounts, and situations not under personal auto insurance. The policy covers all commercial business vehicles such as company cars, commercial trucks, and other vehicles, including food trucks, box trucks, service utility trucks, and work vans. It also covers employees like drivers. It has many names, including fleet insurance, truck insurance, and commercial car insurance.

So, if you run a company with a fleet of commercial vehicles, you need this insurance coverage. Different insurance companies offer various policies designed to fit the needs of your business. The policy covers the following components.

  • Injury to you, your drivers, and passengers: Truck insurance covers all people using commercial vehicles and pays lost wages and medical expenses.

  • Replacement car coverage: When you need to repair your commercial vehicle, the insurance coverage will come in handy. It will pay for vehicle repairs so that you can continue with your operations.

  •  Loading and unloading liability: Any losses you incur when transporting products to events or customers are also covered under this insurance policy.

  • Trips outside your state: You need commercial auto insurance to cover you and your employees while traveling in other states. However, you may have to pay additional premiums to activate that coverage.

Why Do You Need Commercial Vehicle Insurance?

You may have realized how insurance companies exclude certain vehicles and usage from personal auto insurance. That's because private auto insurance isn't meant to cover risks associated with operating business vehicles. So, if your business has several cars, you need a commercial auto insurance policy to ensure you have all the coverage you need. You should talk to an insurance company or broker to help you understand whether you need this kind of policy.


Commercial vehicle insurance is essential for everyone who operates a business with a fleet of vehicles. It provides coverage for damage to the cars and injuries to the business owner, drivers, and passengers. Get commercial auto insurance today to be assured of coverage.