How Much Does Commercial Auto Insurance Cost?
Updated for 2026 — national average costs with state-by-state breakdowns
What Does Commercial Auto Insurance Include?
Commercial auto insurance covers vehicles used for business purposes — company cars, work trucks, delivery vehicles, and fleet vehicles. It provides higher liability limits than personal auto insurance and covers employees driving company vehicles.
The national average cost for commercial auto insurance is $2,400 per vehicle/year. Most homeowners pay between $1,200 and $5,000, though costs can vary significantly based on your location, the scope of work, and other factors outlined below.
What Affects the Price?
Vehicle Type
Sedan/car: $1,200-$2,500/year. Pickup/van: $1,500-$3,500. Box truck: $2,500-$5,000. Semi: $5,000-$15,000
Industry
Office/sales: base rate. Delivery: +20-40%. Construction: +30-60%. Trucking: +50-100%
Coverage
State minimum liability: $800-$1,500. $1M combined single limit: $2,000-$5,000. Comprehensive + collision: add $500-$2,000/vehicle
Key Cost Factors
- ✓Vehicle type and use
- ✓Number of vehicles
- ✓Driving radius
- ✓Employee driving records
- ✓Industry type
- ✓Coverage limits
- ✓Cargo type
💡 Tips to Save Money
- 1.Bundle with a Business Owner's Policy (BOP) for 10-20% discount
- 2.Higher deductibles ($1,000-$2,500) reduce premiums 15-25%
- 3.Fleet discounts kick in at 5+ vehicles (10-25% savings)
- 4.Implement driver safety training to reduce claims and lower future premiums
📈 Commercial Auto Insurance Cost Trends (2020–2024)
Prices have increased +17.7% over the last 5 years
| Year | National Avg | YoY Change |
|---|---|---|
| 2020 | $2,039 | — |
| 2021 | $2,125 | +4.2% |
| 2022 | $2,263 | +6.5% |
| 2023 | $2,326 | +2.8% |
| 2024 | $2,400 | +3.2% |
Based on national averages adjusted for annual inflation. Actual costs vary by location and project scope.
Commercial Auto Insurance Cost by State
Costs vary significantly by state due to labor rates, cost of living, and local market conditions. Click any state for a detailed breakdown.
| State | Low | Average | High |
|---|---|---|---|
| Alabama | $984 | $1,968 | $4,100 |
| Alaska | $1,536 | $3,072 | $6,400 |
| Arizona | $1,140 | $2,280 | $4,750 |
| Arkansas | $960 | $1,920 | $4,000 |
| California | $1,620 | $3,240 | $6,750 |
| Colorado | $1,296 | $2,592 | $5,400 |
| Connecticut | $1,464 | $2,928 | $6,100 |
| Delaware | $1,260 | $2,520 | $5,250 |
| Florida | $1,176 | $2,352 | $4,900 |
| Georgia | $1,080 | $2,160 | $4,500 |
| Hawaii | $1,704 | $3,408 | $7,100 |
| Idaho | $1,104 | $2,208 | $4,600 |
| Illinois | $1,260 | $2,520 | $5,250 |
| Indiana | $1,056 | $2,112 | $4,400 |
| Iowa | $1,032 | $2,064 | $4,300 |
| Kansas | $1,020 | $2,040 | $4,250 |
| Kentucky | $1,008 | $2,016 | $4,200 |
| Louisiana | $1,044 | $2,088 | $4,350 |
| Maine | $1,224 | $2,448 | $5,100 |
| Maryland | $1,380 | $2,760 | $5,750 |
| Massachusetts | $1,560 | $3,120 | $6,500 |
| Michigan | $1,104 | $2,208 | $4,600 |
| Minnesota | $1,224 | $2,448 | $5,100 |
| Mississippi | $936 | $1,872 | $3,900 |
| Missouri | $1,044 | $2,088 | $4,350 |
| Montana | $1,140 | $2,280 | $4,750 |
| Nebraska | $1,056 | $2,112 | $4,400 |
| Nevada | $1,224 | $2,448 | $5,100 |
| New Hampshire | $1,344 | $2,688 | $5,600 |
| New Jersey | $1,500 | $3,000 | $6,250 |
| New Mexico | $1,080 | $2,160 | $4,500 |
| New York | $1,584 | $3,168 | $6,600 |
| North Carolina | $1,080 | $2,160 | $4,500 |
| North Dakota | $1,080 | $2,160 | $4,500 |
| Ohio | $1,080 | $2,160 | $4,500 |
| Oklahoma | $996 | $1,992 | $4,150 |
| Oregon | $1,320 | $2,640 | $5,500 |
| Pennsylvania | $1,224 | $2,448 | $5,100 |
| Rhode Island | $1,380 | $2,760 | $5,750 |
| South Carolina | $1,044 | $2,088 | $4,350 |
| South Dakota | $1,020 | $2,040 | $4,250 |
| Tennessee | $1,032 | $2,064 | $4,300 |
| Texas | $1,116 | $2,232 | $4,650 |
| Utah | $1,140 | $2,280 | $4,750 |
| Vermont | $1,296 | $2,592 | $5,400 |
| Virginia | $1,260 | $2,520 | $5,250 |
| Washington | $1,380 | $2,760 | $5,750 |
| West Virginia | $960 | $1,920 | $4,000 |
| Wisconsin | $1,128 | $2,256 | $4,700 |
| Wyoming | $1,104 | $2,208 | $4,600 |
Frequently Asked Questions
Do I need commercial auto insurance?
Yes, if vehicles are titled to a business, used primarily for business, used by employees, transport goods or people for hire, or display business signage. Personal auto policies typically deny claims if the vehicle was being used for business at the time of an accident.
What does commercial auto insurance cover?
Liability (bodily injury and property damage you cause), collision (your vehicle damage), comprehensive (theft, weather, vandalism), medical payments, uninsured motorist, and hired/non-owned auto (employees using their own cars for business).
🏙️ Commercial Auto Insurance Cost by City
Compare commercial auto insurance costs in the most popular US cities:
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