How does commercial auto insurance work?

With the rise in popularity of ride-sharing services like Uber and Lyft, not to mention food delivery services like DoorDash and Grubhub, there are more people than ever using their vehicles for business. If you’re using your personal vehicle for work, in any capacity other than commuting to and from your employer, you need to know about commercial auto insurance. Did you know: Small business owners and those who are self-employed are responsible for anything that happens to a work-related vehicle, even if they don’t own it. So, what is commercial auto insurance exactly? Is it right for you? How can you get a policy? All these questions and more are answered below, from your helpful independent insurance experts at Kirby Soar Insurance.


commercial auto insurance

1. What is commercial auto insurance?

Let’s start from the beginning. Commercial auto insurance covers automobiles used for business purposes by that business’ employees or owners. It is designed to protect both the business owner and the vehicle operator in case of any damages, injuries, or losses.

2. What does commercial auto insurance cover?

Much like traditional auto insurance, a broad spectrum of insurance coverages are available. Of course, the type of policy you choose will affect the coverage you are provided. The three different types of commercial automobile insurance policies are liability, comprehensive, and collision. Depending on the type(s) you choose, a policy could cover any of the following

  • Bodily Injury (to anyone in either vehicle)
  • Death
  • Damages To Any Vehicle Involved
  • Losses of Property (if work related items were destroyed in the accident)
  • Towing
  • Legal Fees
  • Theft or Burglary (of the vehicle or its contents)
  • Fire
  • Natural Disaster
  • Uninsured Driver Expenses

3. Who needs commercial auto insurance?

As mentioned earlier, these policies are typically necessary when you use your vehicle for work, but usually not for those who use their vehicle only to commute. Those who are self employed or run a small business and use their vehicles for work-related trips also should consider purchasing commercial automobile insurance. You also may need it if you:
1. Use your vehicle to transport people or goods for a business
2. Use a vehicle to transport tools or equipment, or for towing a trailer used to conduct your business
3. Use the vehicle for work-related travel

Certain careers also make it more likely that commercial insurance is needed. They include:

  • Traveling Sales Representatives
  • Realtors
  • Contractors
  • Rideshare Providers (each company has different requirements for insurance)
  • Delivery Personnel
  • Commercial CDL Drivers

4. The cost of commercial auto insurance

The cost of commercial auto insurance depends on several different factors:

  • The type(s) of coverage you choose (a stand alone Liability coverage policy typically costs less than a comprehensive policy.)
  • The type of work the vehicle is used for
  • The vehicle’s make, model, and condition

With that being said, the national average a business pays for commercial auto insurance is $142 per month (or $1,704 per year), assuming a $1 million policy limit. To know if you would be paying more or less, you will need to get quotes from a professional insurance agent, like the ones at Kirby Soar Insurance.

Purchasing Commercial Automobile Insurance in Florida

To learn more contact Kirby Soar Insurance today. We are proud to serve our communities in Polk or Hillsborough County, FL, including areas such as Plant City, Valrico, Lakeland, Mango, Brandon, and Mulberry. And remember, because we are an independent insurance office, we can work with a variety of different providers to find the best, most affordable coverage for you. Get a free quote or call our office in Plant City today at (813) 752-1680.