Average Commercial Car Insurance Costs

What is the average cost of commercial auto insurance?

According to Insureon, the national average cost of commercial car insurance is about $150 per month for business auto customers. 

The company also lists typical average monthly premiums for different types of businesses, including the following industries:

• Auto services: $76
• Building design: $135
• Nonprofits: $123
• Real estate: $147
• Retail: $171
• Consulting: $146
• Food & beverage: $165
• Cleaning services: $173
• Construction and contracting: $173
• Landscaping: $204
• Installation professionals: $216
• IT and technology: $198
• Cannabis: $147
• Healthcare professionals: $140 
• Photo and video: $147
• Therapy and counseling: $140
• Trucking: $816

Another insurer, Progressive Commercial, reports that in 2024, the average monthly cost for commercial auto insurance ranged from $272 for contractor vehicles to $954 for for-hire transport trucks. However, the median premiums — what most businesses actually pay — were slightly lower, around $212 for contractors and $219 for business autos. 

The company also lists commercial auto insurance costs for specialty business types, including the following: 

• Contractors: $257
• For-hire specialty trucks: $767
• For-hire transport trucks: $1,041
• Tow trucks: $600

As you can see, many factors affect the average cost of commercial auto insurance, and each carrier weighs options and coverages differently, which is why prices can vary so widely.

What affects your commercial auto insurance rates?

When choosing business insurance of any kind, including commercial auto, you’ll need to consider several factors about your business and the vehicles you insure to get an accurate quote. 

These are some of the most common variables that affect commercial auto insurance rates:

• Location: Your location will play a significant role in insurance costs, as some states are more expensive than others.
• Vehicle type: The commercial vehicle’s year, make and model will affect the price. Bigger, heavier vehicles typically cost more to insure than smaller, lighter ones. 
• Miles driven: How much you drive during the policy term will also affect your rates. The more you drive, the more expensive your premium will be because you’re on the road more, which raises accident risk. 
• Driving record: Your driving record and your employees’ driving records will affect your rates. Better driving records are rewarded with lower rates. 
• Industry: What you do for a living can affect your vehicle rates. Some industries, like trucking or construction, face higher premiums because of the risks involved.
• Number of vehicles: Having a fleet of vehicles increases your overall rates but may lower the per-vehicle cost.

To get an accurate estimate, work with your insurance carrier on a quote that considers all pertinent details about the vehicles and drivers. Christine Melsopp, a senior sales producer at Insureon, emphasized the importance of aligning your policy with your specific business needs. 

“[Consider] factors such as vehicle use, employee driving records, and the types of vehicles you operate,” Melsopp advised. “Also, it’s worth calling out that [the] vehicle needs to be registered to the business to be insured as a commercial auto.”

How to keep your commercial auto insurance costs down

Commercial auto insurance typically costs more than personal coverage. According to PolicyGenius, the average full-coverage personal auto policy runs about $136 per month (or $1,638 annually). Commercial policies are usually higher because they come with greater liability limits, broader protections, and added business risk. 

Exact costs vary widely by state, vehicle type, coverage limits and even the driving records of employees, which is why many small business owners look for ways to keep this line item under control.

Here are some tips to keep your commercial auto insurance costs down: 

• Vet your drivers. Conduct employment verification to ensure you’re hiring drivers with good driving records. Perform regular drug testing to make sure employees don’t drive under the influence, which can lead to tickets and accidents, driving up your insurance costs. 
• Choose higher deductibles. If you opt for a higher commercial auto insurance deductible, your monthly premiums will likely be lower. However, Melsopp noted that it’s crucial to have the funding to pay that deductible if there’s an accident. “You’ll pay more out-of-pocket in the event of a claim, so it’s essential to balance affordability with your ability to cover potential expenses,” Melsopp cautioned.
• Install driving trackers. Some insurance carriers offer discounts to companies that use telematics software to track speed and unsafe driver maneuvers. These devices may also have GPS capabilities, so you can see if drivers are taking unnecessary detours. Many of the best GPS fleet management services now feature dash cams that use AI to monitor when a driver is distracted and report incidents of unsafe driving directly back to fleet managers.
• Get pay-as-you-drive policies. Linked to GPS tracking devices, some insurers offer programs that base their premiums on how and when your vehicles are actually used. So, for example, if you drive at statistically less risky times, you may save money.
• Pay annually. Many insurance companies offer discounts for upfront, annual payments of the entire premium instead of monthly payments. Melsopp explained that this can be a helpful approach — if it aligns with your business’s financial health. “Paying annually can offer discounts and reduce administrative fees, making it more cost-effective over time,” Melsopp said. “However, monthly payments provide flexibility and may be more manageable for businesses with tighter cash flows.” 
• Find a cheaper home base. Since rates are influenced by location, and insurers weigh accident and theft rates in your area, you can save money if you base your commercial vehicles out of a less expensive area. This might not be feasible for some businesses, such as restaurants doing deliveries, but if possible, consider moving your fleet to a lower-priced location.
• Limit miles driven. Generally, the less you drive, the lower your insurance rates are. While you can’t eliminate mileage for work vehicles, you can reduce miles driven with GPS route planning and grouping deliveries by proximity. 
• See about a business use policy. You may not need a commercial auto insurance policy; in some cases, a personal car insurance policy with a “business pursuits” designation will suffice. This usually applies to sole proprietors or very small businesses. If the vehicle is seen primarily as a personal vehicle, your rates will be lower.
• Bundle as a fleet. If you have more than one commercial vehicle, consider bundling them as a fleet to qualify for discounted premiums. “Bundling vehicles into a fleet policy can simplify management, provide broader coverage options, and often result in cost savings due to multi-vehicle discounts,” Melsopp explained. “It also allows for more straightforward adjustments as your business grows or changes.” Some carriers will have a minimum number of vehicles required for a fleet, however, so this isn’t always an option. 
• Ask about other business insurance bundle discounts. Some carriers will offer discounts if you’ve purchased multiple business policies through them. Just like home and auto bundles for personal insurance, you can also bundle commercial insurance policies. 

What to consider besides cost when choosing commercial auto insurance

The best business insurance providers do more than find you the lowest rate. They help you navigate the complexities of commercial auto insurance and match you with a policy that protects your business from the many risks of operating work vehicles.

“A good policy offers adequate coverage limits, includes necessary protections like collision and comprehensive coverage, and accounts for your business’s unique risks,” Melsopp explained. “Opting for the cheapest plan may leave you underinsured, exposing your business to significant financial liabilities in the event of an accident.”

When comparing policies, look beyond premiums. Make sure you have enough liability coverage, plus comprehensive and collision protection to pay for damages or replace your vehicle if necessary. Rental reimbursement is also valuable, since it keeps your business moving even when a vehicle is in the shop.

The best commercial auto insurance policy is the one that provides strong financial protection and responds reliably when you file a claim — not just the one with the lowest monthly bill.

Natalie Hamingson and Mark Fairlie contributed to this article.