What is commercial auto insurance for businesses?

Commercial vehicle insurance is needed to cover the cars, trucks, and vans used in conducting your business. Large fleets, as well as small businesses, should be properly covered by a commercial auto insurance policy.

What is commercial auto insurance?

Commercial auto insurance is a type of business insurance that covers many kinds of commercial vehicles—from automobiles used for business purposes, including company cars, to a wide variety of commercial trucks and vehicles. Commercial vehicle insurance is a policy of physical damage and liability coverage for amounts, situations, and usage not covered by a personal auto insurance policy.

What kind of vehicles are covered by a commercial auto insurance policy?

Box trucks, food trucks, work vans and service utility trucks are just a few examples of commercial vehicles that require a commercial auto insurance policy. You may have heard of this coverage referred to as commercial auto insurance, commercial car insurance, truck insurance, or fleet insurance. While commercial vehicle insurance is most commonly associated with trucks or more recognized work vehicles, regular cars and automobiles may also require a commercial auto policy if they're used for business purposes.

Why do you need commercial vehicle insurance?

Certain business usage and vehicle types may be excluded from personal auto insurance policies. Why? Since personal auto policies were not meant for businesses, they are written and rated differently. More important to you—a business owner or manager—businesses often need the particular coverages found in a commercial auto insurance policy.

Determining whether your business requires commercial vehicle coverage can still be confusing. Here's a little more information and examples of when you need commercial insurance.

What does commercial auto insurance cover?

Commercial vehicle insurance, like your personal auto policy, provides coverages such as liability, collision, comprehensive, medical payments (or personal injury protection) and uninsured motorist coverage. However, there are also differences between a commercial auto insurance policy and your personal auto policy that may include eligibility, definitions, coverages, exclusions, and limits.

What are the coverages in a commercial vehicle policy?

• Bodily injury liability coverage: pays for bodily injury or death resulting from an accident for which you are at fault and in most cases provides you with a legal defense.

• Property damage liability coverage: provides you with protection if your vehicle accidently damages another person's property and, in most cases, provides you with a legal defense.

• Combined single limit (CSL): Liability policies typically offer separate limits that apply to bodily injury claims for property damage. A combined single limit policy has the same dollar amount of coverage per covered occurrence whether bodily injury or property damage, one person or several.

• Medical payments, no-fault or personal injury coverage: usually pays for the medical expenses of the driver and passengers in your vehicle incurred as a result of a covered accident regardless of fault.

• Uninsured motorist coverage: pays for your injuries and, in some circumstances, certain property damage caused by an uninsured or a hit-and-run driver. In some cases, underinsured motorist coverage is also included. This is for cases in which the at-fault driver has insufficient insurance.

• Comprehensive physical damage coverage: pays for damage to your vehicle from theft, vandalism, flood, fire, and other covered perils.

• Collision coverage: pays for damage to your vehicle when it hits or is hit by another object.

Additional coverage options in our commercial vehicle policy

Beyond these essential coverages, GEICO offers a range of options to tailor your commercial auto insurance policy to your specific business needs:

• Emergency Roadside Service: Drive with peace of mind knowing that help is available 24/7. Get assistance anytime, day or night, for flat tires, towing, jump-starts, and more.

• New Vehicle Replacement Cost Coverage: If your new commercial vehicle is totaled in an accident, this coverage helps pay for a brand-new replacement, not just the depreciated value.

• Hired Auto Physical Damage with Loss of Use Coverage: Protects your business if a rented or borrowed vehicle is damaged or inoperable.

• Employee Hired Auto Coverage: Extends coverage to employees who use their personal vehicles for work purposes, even if they're rented or borrowed in the employee's name.

• Rental Reimbursement: If your commercial vehicle is out of commission due to a covered incident, this coverage helps pay for a rental vehicle so you can continue your operations without disruption.

• Expanded Towing: Get your commercial vehicle towed to the repair shop of your choice, no matter the location.

• Auto Loan/Lease Coverage: This helps cover the gap between what you owe on your auto loan or lease and the actual cash value of your vehicle if it's totaled or stolen.

• Blanket Additional Insured Coverage: This streamlines the process of adding additional insureds to your policy, providing them with proof of coverage quickly and efficiently.

Why should I buy my commercial auto insurance from GEICO?

Get your commercial auto insurance policy with GEICO and receive competitive rates and great service. We are a wholly-owned subsidiary of Berkshire Hathaway, Inc., and have the resources to pay your claims with combined assets of over $32 billion*. Our financial strength and corporate honors and ratings set us apart from other companies. Some of our policies are issued through National Indemnity Company (NICO), which is also a member of the Berkshire Hathaway group of insurance companies. Best of all, when you call, you'll get the same great service you expect from GEICO. Learn more about why getting your commercial auto policy with GEICO is a good move for your business.

Call (866) 509-9444 for more information about GEICO's commercial auto insurance or go online now to request a free commercial auto insurance quote.

Are unattached tools and materials covered in a commercial auto insurance policy?

Unattached tools and materials transported in your vehicle are not covered by commercial auto insurance.

Tools and equipment in a commercial automobile are best covered as part of a Business Owner's Policy or general liability policy.

Who is covered to drive my commercial vehicle?

Your commercial auto policy can cover employees, family members, and others as drivers.

If an unlisted driver is involved in an accident while operating any commercial auto covered by this policy, coverage may be reduced to the minimum financial responsibility limits of your state.

How does commercial auto insurance help if I need certain liability limits for a contract?

GEICO Commercial Auto Insurance can offer higher liability limits than personal auto insurance. If a specific contract requires higher limits than you already have, call us at (866) 509-9444.

We can also provide proof of your liability limits for your job bids and contracts as needed.

Is my trailer automatically covered by commercial vehicle insurance?

That depends on the size of the trailer and the commercial auto policy issued.

• Less than 3,000* pounds gross vehicle weight: It's automatically covered for liability. If physical damage (theft or damage) coverage is requested on the trailer, the trailer must be listed on the policy regardless of the weight for the coverage to apply.
• More than 3,000* pounds of gross vehicle weight (usually more than one axle): The trailer is not covered unless it is listed on your policy.

*This may decrease to a 2,000 pounds load capacity based on the policy issued. Please read your commercial auto policy in full for more information.

What other types of business insurance does GEICO offer?

GEICO can help you with the following types of insurance for businesses and freelancers:

• General liability: Covers your business property damage or bodily injury to others.

• Professional liability: Covers the services you provide in case you make an error and/or are sued.

• Business Owner's Policy: Covers merchandise and equipment, plus bodily injury to others or property damage on your premises. Also covers damage to the premises and business interruption expenses.

• Workers' compensation: Covers your employees if they're injured while working.

FAQs about commercial auto insurance for businesses

• How does commercial auto insurance work?

  Commercial auto insurance protects your business from financial loss if a company vehicle is involved in an accident. It covers things like property damage, medical expenses, and legal fees, depending on the specific coverage options you choose.

• How much is commercial auto insurance?

  The cost of commercial auto insurance varies depending on the type of vehicle, its use, your driving history, the coverage limits you select, and more. It's best to get a personalized quote to determine the exact cost for your business.

• Is there a difference between a fleet and non-fleet commercial auto policy?

  Yes, a fleet policy covers multiple vehicles under a single policy, while a non-fleet policy is for businesses with only a few vehicles. Fleet policies often offer advantages like streamlined administration and potential cost savings.

• Do I need commercial auto insurance if I already have personal insurance?

  Yes, you need commercial auto insurance if you already have personal car insurance. Personal auto insurance typically doesn't cover vehicles used for business purposes. Commercial auto insurance provides the necessary protection for business-related driving activities.

• Are commercial auto insurance premiums tax-deductible?

  Yes, you can generally deduct commercial auto insurance premiums from your taxes as a business expense, but it's best to consult with a tax professional for specific guidance.

• What are the minimum liability limits required for commercial auto insurance?

  Commercial auto insurance minimum liability limits vary by state, but it's often recommended to have higher limits than the state minimum to protect your business adequately. Contact a GEICO agent to discuss the appropriate limits for your needs.

• How do I file a claim for a commercial auto accident?

  Contact GEICO as soon as possible after an accident to report the incident and start the claims process. A claims representative will guide you through the necessary steps.

• What factors affect my commercial auto insurance rates?

  Several factors influence your commercial auto insurance rates, including your driving history, the type and use of your vehicles, your chosen coverage limits, and the location where you operate your business.