Coast to Coast
& CannaShield Insurance Services

What is commercial auto insurance, and do I need it for my business?

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Commercial auto insurance covers vehicles used for business purposes, such as delivery vans, service trucks, or company cars, for accidents, injuries, or property damage. It’s required if your business owns, leases, or uses vehicles for work, as personal auto policies typically exclude business use.

What does commercial auto insurance cover?

 

It covers bodily injury and property damage caused by your vehicles, vehicle damage from accidents, theft, or vandalism, and medical payments for injuries. Optional coverages include collision, comprehensive, and uninsured motorist protection.

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Is commercial auto insurance required for rented or leased vehicles?

 

Yes, if you rent or lease vehicles for business use, commercial auto insurance is typically required. Rental agreements often mandate coverage, and you may need hired and non-owned auto coverage for vehicles not owned by your business.​

Does commercial auto insurance cover cargo or equipment in my vehicle?

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Standard commercial auto insurance does not cover cargo or equipment.  You will need an inland marine or cargo insurance to protect goods or tools in transit, such as construction equipment or delivery items, against theft or damage

What happens if I don’t have commercial

auto insurance?

 

Without commercial auto insurance, you’re liable for accident-related costs, including injuries, property damage, or lawsuits, which can be financially devastating. You may also face fines, lose contracts, or violate state regulations requiring coverage for business vehicles.

How much does commercial auto

insurance cost?

 

Premiums typically range from $1,200 to $2,500 per vehicle annually, depending on vehicle type, usage (e.g., delivery vs. transport), driver history, location, and coverage limits. Fleets or high-risk vehicles like heavy trucks may cost $5,000 or more per vehicle.

Does commercial auto insurance cover personal use of company vehicles?

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Limited personal use may be covered, but it depends on the policy. You must disclose personal use to your insurer to avoid claim denials. Some policies exclude personal use, requiring separate personal auto insurance for employees.

What is a certificate of insurance, and why is it needed for commercial auto?

 

A certificate of insurance proves your vehicles have active coverage, detailing policy types and limits. Clients, leasing companies, or regulators may request it to verify compliance with contracts or state laws. Your insurer can provide this document.

Do I need commercial auto insurance for independent contractors or employee-owned vehicles

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If employees or contractors use their vehicles for business tasks, you may need non-owned auto liability coverage to protect against accidents during work-related driving.  Check contracts and state laws, as personal policies often exclude business use.

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

 

Commercial auto insurance is pricier due to higher risks, such as frequent driving, heavier vehicles, cargo transport, or multiple drivers. Businesses also face greater liability exposure, and policies often include higher coverage limits to meet client or regulatory requirements.