Frequently asked questions about commercial auto insurance

Commercial auto insurance covers the cost of accidents that involve one of your company cars, including medical bills, property damage, and lawsuits from other drivers. It can also provide compensation if a company car is stolen, vandalized, or damaged, depending on which coverage is included in your policy.

Every state, except for New Hampshire and Virginia, requires that businesses with company vehicles have commercial auto insurance. If your business uses vehicles that it doesn’t own, like employee vehicles or leased cars, you can purchase hired and non-owned auto insurance instead of commercial auto insurance.

Personal auto insurance policies do not cover business use. This policy is essential for businesses that rely on employee vehicles.

Learn about insurance requirements in your state.

Each state requires a different minimum amount of commercial auto insurance coverage. The requirements are typically broken down into a minimum amount of bodily injury liability, property damage liability, and uninsured motorist coverage.

Depending on your business’s risk factors, you may want to purchase the minimum amount of coverage to meet your state’s standards. You can opt for more coverage if you anticipate making higher claims.

You only need to purchase commercial auto insurance for vehicles that your business owns. If you use your personal vehicle for work purposes, you can purchase hired and non-owned auto insurance (HNOA) for the vehicle.

Unlike commercial auto insurance, HNOA is not required by law. However, in most cases hired and non-owned auto insurance covers accidents in a personal vehicle only while you’re using it for work purposes.

The line between what counts as personal and work use can be blurry when you own your own business, especially if you run a sole proprietorship or an independent contractor. If you regularly use your personal vehicle to do any of the following, you’ll probably need to purchase hired and non-owned auto insurance instead of personal auto insurance:

• Transport equipment
• Drive clients or employees
• Haul heavy, work-related loads
• Perform a service that you’re paid for, like delivering or installing equipment

In very limited cases, the liability coverage included in personal auto insurance is enough to cover work use for some sole proprietorships. If you occasionally use your personal vehicle for work, your insurer may be able to modify your personal auto insurance policy to include some limited work use.

TechInsurance is a trusted insurance expert for all small businesses, including startups, limited liability companies (LLCs) and freelancers, with extensive knowledge of the technology sector.

Professions that commonly partner with TechInsurance for their insurance needs include:

Our online application for commercial auto insurance takes just a few minutes to complete. It asks for basic information about your business, including the number of company cars you own and how frequently you use them.

As soon as you finish the application, you’ll be able to browse and select quotes from top carriers in your area. Look them over and pick the policy that works best for you. A licensed insurance agent is available to assist you throughout the process.

Once you purchase a policy, it takes one to two days to obtain insurance for your business. Once you have insurance, you can access your TechInsurance account and obtain proof of insurance immediately.

If you require proof of commercial auto insurance, it’s easy to obtain a certificate of insurance through TechInsurance. Simply log in to your account to download your certificate of insurance or request your certificate of insurance by email.

With TechInsurance, you can compare quotes from several insurance companies, which is one of the best ways to save money on business insurance, including commercial auto.

Beyond comparison shopping, you can also:

• Bundle policies for a discount
• Choose low policy limits
• Choose a high deductible
• Manage risks to avoid claims
• Communicate with your clients

Read more about how to save money on business insurance.

To make a claim on your commercial auto policy, you will need to contact your insurance provider directly. They will ask for:

• A description of the incident
• Basic information about your business
• Your policy number

Your insurance agent can help guide you through the process and answer any additional questions.

To change the limit of your commercial auto insurance policy, simply contact your TechInsurance agent at any time to learn more about your options. The agent can adjust the policy limit to give you more or less coverage, and provide assistance if you need to purchase additional policies for your business.

If you cancel your commercial auto insurance policy before it expires, you run the risk of paying more for the same policy later down the road. Insurance companies typically charge higher rates to businesses that cancel policies.

If you cancel your policy before you purchase a replacement policy, you may be in violation of state law. By operating company cars without insurance, you also leave your business exposed to costly accidents and lawsuits.

Read more about what you should consider before canceling a policy.

Hired and non-owned auto insurance (HNOA) provides coverage for vehicles that your business uses but does not own. This includes your employees’ personal vehicles and vehicles leased by your business. Whereas, commercial auto insurance covers all company-owned vehicles.

Commercial auto insurance is required by law. HNOA is recommended, but not required.

Personal auto insurance covers accidents that occur only while you are using a vehicle for personal reasons. That includes your commute and travel unrelated to your job. You can check with your insurance company to see if they’ll extend coverage for occasional business use.

Commercial auto insurance provides coverage for business-owned vehicles. Sole proprietors who drive their own vehicle for business purposes likely need this policy. 

Hired and non-owned auto insurance provides liability coverage for vehicles that your business operates but does not own. That includes employee-owned vehicles and vehicles rented or leased by your business.