Commercial auto insurance cost varies dramatically by vehicle type and business use. We gathered quotes from 15 insurers across multiple states and found two distinct cost categories based on vehicle purpose.
Average Commercial Auto Insurance Cost
Updated: October 28, 2025
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Key Takeaways
Standard business vehicles cost $84–$93 monthly for sedans, vans, SUVs and pickup trucks with state minimum coverage.
For-hire vehicles requiring passenger transport cost $833–$934 monthly due to specialized coverage requirements and higher liability exposure
Your location changes rates by up to 33% with Idaho offering the best savings at 33% below the national average for food trucks.
How Much Does Commercial Auto Insurance Cost on Average?
Standard Business Vehicles
| Box Truck | $98 | $101 |
| Food Truck | $99 | $102 |
| Pickup Truck | $97 | $101 |
| SUV | $92 | $115 |
| Sedan | $89 | $104 |
| Van | $95 | $100 |
For-Hire Specialty Vehicles
| Bus | $997 | $1,004 |
| Limousine | $993 | $1,004 |
| Taxi | $988 | $1,001 |
For-hire vehicles cost 9 - 11x more than standard commercial vehicles because they transport paying passengers. This substantially increases liability exposure and requires specialized coverage with higher limits.
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State
Average Commercial Auto Insurance Cost by State
Your location affects commercial auto insurance costs by up to 33% based on state minimum requirements and population density. We analyzed state rates compared to national averages and found substantial geographic variation.
States with Best Savings (Below National Average)
| Hawaii | Sedan | $63 | $30 | 48% |
| Delaware | Dump Truck | $179 | $35 | 20% |
| Alabama | Pickup Truck | $95 | $9 | 9% |
| Arizona | SUV | $70 | $6 | 9% |
| Arkansas | Food Truck | $132 | $11 | 9% |
| Georgia | Forklift | $133 | $8 | 6% |
| Colorado | Pickup Truck | $95 | $4 | 5% |
States with Higher Costs (Above National Average)
| Alaska | Snow Plow | $335 | $-192 | -57% |
| Florida | Pickup Truck | $95 | $-26 | -28% |
| California | Pickup Truck | $95 | $-17 | -18% |
| Connecticut | Pickup Truck | $95 | $-10 | -10% |
| Colorado | Semi-Truck | $207 | $-3 | -1% |
State minimum coverage requirements create the biggest differences. Urban areas within states also cost 20-30% more than rural locations due to higher accident frequency. California, Hawaii, Massachusetts and Michigan prohibit insurers from using gender or credit as rating factors.
Average Commercial Auto Insurance Cost by Vehicle Type
Your vehicle type determines your base insurance rate before other factors apply. Standard business vehicles with state minimum coverage cluster around $84-$93/month, while for-hire vehicles range from $833-$934/month.
Standard Business Vehicles (State Minimum Coverage)
Data filtered by:
Box Truck
| Pennsylvania | $63 | $752 |
| Hawaii | $67 | $803 |
| Vermont | $69 | $828 |
| Iowa | $74 | $884 |
| Idaho | $80 | $955 |
| New Hampshire | $89 | $1,072 |
| Wisconsin | $92 | $1,099 |
| North Dakota | $97 | $1,159 |
| New Mexico | $98 | $1,181 |
| Montana | $101 | $1,213 |
| Nebraska | $104 | $1,247 |
| Delaware | $104 | $1,246 |
| Alabama | $106 | $1,274 |
| Wyoming | $108 | $1,291 |
| Kansas | $110 | $1,324 |
| Oklahoma | $112 | $1,341 |
| Tennessee | $112 | $1,341 |
| Utah | $113 | $1,352 |
| Arkansas | $114 | $1,373 |
| Arizona | $115 | $1,375 |
| Mississippi | $117 | $1,400 |
| Indiana | $118 | $1,419 |
| Washington | $119 | $1,423 |
| West Virginia | $119 | $1,433 |
| Kentucky | $120 | $1,445 |
| Oregon | $121 | $1,451 |
| Georgia | $121 | $1,453 |
| Ohio | $121 | $1,452 |
| North Carolina | $124 | $1,491 |
| South Carolina | $125 | $1,498 |
| Minnesota | $125 | $1,498 |
| Colorado | $126 | $1,517 |
| Nevada | $126 | $1,508 |
| Virginia | $133 | $1,597 |
| Louisiana | $138 | $1,662 |
| South Dakota | $139 | $1,671 |
| Illinois | $140 | $1,675 |
| Maine | $141 | $1,691 |
| Missouri | $144 | $1,730 |
| Connecticut | $147 | $1,762 |
| Massachusetts | $153 | $1,832 |
| Maryland | $153 | $1,837 |
| Rhode Island | $156 | $1,873 |
| New Jersey | $157 | $1,889 |
| California | $158 | $1,894 |
| New York | $165 | $1,976 |
| Texas | $170 | $2,040 |
| Florida | $178 | $2,142 |
| Alaska | $208 | $2,499 |
| Michigan | $240 | $2,876 |
For-Hire Vehicles (All Coverage Types)
Data filtered by:
Bus
| Pennsylvania | $213 | $2,557 |
| Hawaii | $226 | $2,710 |
| Vermont | $243 | $2,919 |
| Iowa | $251 | $3,013 |
| Idaho | $274 | $3,292 |
| New Hampshire | $307 | $3,679 |
| Wisconsin | $315 | $3,782 |
| North Dakota | $328 | $3,938 |
| New Mexico | $335 | $4,024 |
| Montana | $343 | $4,118 |
| Nebraska | $360 | $4,317 |
| Delaware | $365 | $4,374 |
| Wyoming | $370 | $4,441 |
| Alabama | $376 | $4,517 |
| Oklahoma | $377 | $4,519 |
| Tennessee | $381 | $4,578 |
| Arizona | $386 | $4,630 |
| Utah | $391 | $4,695 |
| Indiana | $399 | $4,787 |
| Arkansas | $404 | $4,850 |
| Washington | $405 | $4,863 |
| Mississippi | $405 | $4,865 |
| Ohio | $412 | $4,940 |
| Kentucky | $415 | $4,978 |
| West Virginia | $416 | $4,992 |
| Georgia | $422 | $5,059 |
| Oregon | $426 | $5,106 |
| Minnesota | $426 | $5,107 |
| Colorado | $429 | $5,152 |
| North Carolina | $432 | $5,189 |
| Nevada | $435 | $5,221 |
| South Carolina | $441 | $5,291 |
| Virginia | $444 | $5,329 |
| Illinois | $475 | $5,697 |
| Louisiana | $480 | $5,755 |
| South Dakota | $489 | $5,866 |
| Missouri | $494 | $5,924 |
| Maine | $496 | $5,947 |
| Connecticut | $500 | $6,003 |
| Massachusetts | $502 | $6,025 |
| Rhode Island | $526 | $6,311 |
| Maryland | $537 | $6,439 |
| New Jersey | $537 | $6,446 |
| California | $537 | $6,439 |
| New York | $561 | $6,726 |
| Texas | $593 | $7,114 |
| Florida | $604 | $7,249 |
| Alaska | $695 | $8,336 |
| Vermont | $719 | $8,628 |
| Maine | $724 | $8,693 |
| New Hampshire | $733 | $8,800 |
| Idaho | $750 | $9,001 |
| Maine | $750 | $9,003 |
| Vermont | $764 | $9,166 |
| New Hampshire | $785 | $9,424 |
| Iowa | $802 | $9,621 |
| Idaho | $817 | $9,802 |
| North Dakota | $818 | $9,814 |
| Michigan | $832 | $9,988 |
| North Dakota | $836 | $10,027 |
| Hawaii | $838 | $10,057 |
| Nebraska | $840 | $10,078 |
| Hawaii | $842 | $10,106 |
| Utah | $865 | $10,381 |
| Iowa | $869 | $10,427 |
| Wyoming | $869 | $10,429 |
| Alabama | $875 | $10,505 |
| Utah | $881 | $10,575 |
| Nebraska | $886 | $10,627 |
| Oklahoma | $907 | $10,879 |
| North Carolina | $914 | $10,963 |
| Alabama | $919 | $11,024 |
| Montana | $923 | $11,076 |
| Wisconsin | $928 | $11,130 |
| Montana | $937 | $11,239 |
| Arkansas | $939 | $11,263 |
| Oklahoma | $947 | $11,363 |
| North Carolina | $949 | $11,393 |
| Wisconsin | $950 | $11,404 |
| Wyoming | $958 | $11,500 |
| Mississippi | $973 | $11,675 |
| Indiana | $977 | $11,729 |
| Kentucky | $983 | $11,795 |
| Mississippi | $997 | $11,959 |
| Arkansas | $1,004 | $12,050 |
| New Mexico | $1,006 | $12,076 |
| Alaska | $1,008 | $12,100 |
| Ohio | $1,009 | $12,103 |
| Georgia | $1,014 | $12,170 |
| Indiana | $1,020 | $12,238 |
| Virginia | $1,020 | $12,235 |
| Ohio | $1,028 | $12,339 |
| West Virginia | $1,035 | $12,423 |
| South Carolina | $1,036 | $12,428 |
| West Virginia | $1,043 | $12,522 |
| South Carolina | $1,049 | $12,582 |
| Kentucky | $1,053 | $12,632 |
| Virginia | $1,060 | $12,716 |
| Georgia | $1,063 | $12,754 |
| New Mexico | $1,066 | $12,790 |
| Alaska | $1,066 | $12,795 |
| Delaware | $1,078 | $12,935 |
| Oregon | $1,079 | $12,944 |
| Minnesota | $1,090 | $13,081 |
| Tennessee | $1,093 | $13,117 |
| Tennessee | $1,111 | $13,332 |
| Nevada | $1,123 | $13,477 |
| Oregon | $1,123 | $13,470 |
| Arizona | $1,124 | $13,483 |
| Minnesota | $1,125 | $13,503 |
| Arizona | $1,135 | $13,615 |
| Delaware | $1,137 | $13,640 |
| Pennsylvania | $1,138 | $13,657 |
| Pennsylvania | $1,161 | $13,933 |
| South Dakota | $1,162 | $13,941 |
| South Dakota | $1,164 | $13,966 |
| Nevada | $1,186 | $14,233 |
| Colorado | $1,188 | $14,253 |
| Washington | $1,216 | $14,595 |
| Connecticut | $1,224 | $14,688 |
| Missouri | $1,225 | $14,704 |
| Texas | $1,226 | $14,711 |
| Illinois | $1,231 | $14,776 |
| Missouri | $1,245 | $14,941 |
| Connecticut | $1,254 | $15,051 |
| Massachusetts | $1,254 | $15,048 |
| Maryland | $1,262 | $15,145 |
| Washington | $1,263 | $15,155 |
| Maryland | $1,264 | $15,173 |
| Colorado | $1,264 | $15,163 |
| Texas | $1,266 | $15,194 |
| Rhode Island | $1,288 | $15,456 |
| California | $1,291 | $15,497 |
| Illinois | $1,301 | $15,616 |
| New Jersey | $1,307 | $15,682 |
| Massachusetts | $1,309 | $15,703 |
| Rhode Island | $1,311 | $15,735 |
| California | $1,355 | $16,255 |
| Michigan | $1,357 | $16,283 |
| New Jersey | $1,373 | $16,479 |
| Michigan | $1,392 | $16,706 |
| Florida | $1,439 | $17,269 |
| Florida | $1,523 | $18,279 |
| Louisiana | $1,573 | $18,871 |
| Louisiana | $1,584 | $19,009 |
| New York | $1,720 | $20,638 |
| New York | $1,742 | $20,900 |
Sedans and SUVs offer the lowest rates at just $63-$70 monthly for state minimum coverage, saving you over 50% compared to national averages. Vans and pickup trucks run slightly higher at $94-$95 monthly, while box trucks and food trucks cost $125-$132 monthly, still affordable options for delivery and mobile food businesses.
Average Commercial Auto Insurance Cost by Industry
Your industry determines how insurers classify your risk level, which accounts for 20-30% of your total cost. We analyzed costs across different business types and found that for-hire passenger transport receives the highest risk classification.
Lowest-Cost Per Industry
Data filtered by:
Agriculture/Farming
| Alabama | $88 | $1,052 | 31% |
| Alaska | $172 | $2,064 | 30% |
| Arizona | $95 | $1,137 | 30% |
| Arkansas | $94 | $1,129 | 32% |
| California | $129 | $1,545 | 31% |
| Colorado | $103 | $1,235 | 31% |
| Connecticut | $121 | $1,452 | 30% |
| Delaware | $85 | $1,015 | 32% |
| Florida | $145 | $1,745 | 30% |
| Georgia | $99 | $1,187 | 31% |
| Hawaii | $54 | $650 | 33% |
| Idaho | $67 | $808 | 32% |
| Illinois | $114 | $1,373 | 30% |
| Indiana | $96 | $1,157 | 32% |
| Iowa | $60 | $725 | 32% |
| Kansas | $91 | $1,088 | 24% |
| Kentucky | $98 | $1,174 | 32% |
| Louisiana | $113 | $1,361 | 29% |
| Maine | $115 | $1,381 | 34% |
| Maryland | $125 | $1,503 | 30% |
| Massachusetts | $124 | $1,489 | 31% |
| Michigan | $196 | $2,351 | 30% |
| Minnesota | $101 | $1,215 | 31% |
| Mississippi | $96 | $1,148 | 32% |
| Missouri | $121 | $1,453 | 29% |
| Montana | $82 | $986 | 32% |
| Nebraska | $85 | $1,024 | 32% |
| Nevada | $105 | $1,260 | 30% |
| New Hampshire | $73 | $878 | 32% |
| New Jersey | $131 | $1,569 | 30% |
| New Mexico | $81 | $975 | 31% |
| New York | $134 | $1,606 | 30% |
| North Carolina | $102 | $1,226 | 32% |
| North Dakota | $77 | $922 | 34% |
| Ohio | $99 | $1,192 | 32% |
| Oklahoma | $92 | $1,101 | 31% |
| Oregon | $100 | $1,198 | 31% |
| Pennsylvania | $53 | $631 | 30% |
| Rhode Island | $126 | $1,507 | 31% |
| South Carolina | $104 | $1,252 | 30% |
| South Dakota | $117 | $1,410 | 30% |
| Tennessee | $93 | $1,118 | 31% |
| Texas | $140 | $1,678 | 30% |
| Utah | $92 | $1,103 | 32% |
| Vermont | $57 | $683 | 33% |
| Virginia | $107 | $1,286 | 32% |
| Washington | $98 | $1,176 | 31% |
| West Virginia | $99 | $1,188 | 32% |
| Wisconsin | $74 | $886 | 31% |
| Wyoming | $89 | $1,064 | 32% |
We analyzed commercial auto insurance rates from 15 major insurers across all 50 states. We found that financial services businesses pay the lowest premiums at just $32-$90 monthly for state minimum coverage, saving 55-60% below national averages. Professional Services and Medical/Healthcare businesses also enjoy affordable rates at $55-$85 per month, while rural states like Pennsylvania and Iowa offer the most competitive pricing across all industries.
How to Lower Commercial Auto Insurance Costs
Six strategies can reduce commercial auto insurance costs based on patterns we found in our rate analysis across multiple states.
Compare quotes from multiple insurers
We found price swings of $44/month for the same coverage when analyzing food truck insurance in Idaho. Regional carriers beat national insurers on price for certain vehicle types. Getting quotes from three companies takes 30 minutes and can cut your annual cost by hundreds.
Estimated savings: Up to 33% for certain vehicles
Choose appropriate coverage limits
State minimum coverage runs $84-$93/month for standard vehicles. Higher limits cost $833-$934/month. Don't pay for more coverage than your business needs, but avoid going too lean. A contractor hauling $30,000 worth of equipment needs better protection than state minimums provide.
Estimated savings: $700+/month if state minimum meets your needs
Consider your business location
Where you base your operation matters. Idaho food truck operators pay $44/month less than the national average, while Florida sedan owners pay $26/month more. You can't always relocate, but understanding location costs helps when you're expanding to new markets.
Estimated savings: $3-$44/month depending on location
Maintain clean driving records
States with better loss ratios in our data show 20-33% savings compared to national averages. Implement driver training programs and establish strict safety policies.
Estimated savings: 20-33% with clean records
Choose the right vehicle for your business
Standard business vehicles cost $84-$93/month while for-hire vehicles cost $833-$934/month. If passenger transport isn't necessary for your business, avoid vehicles that require specialty coverage.
Estimated savings: $740+/month by using standard vehicles
Compare quotes regularly
Commercial auto rates change frequently and vary widely between companies. Based on our analysis, businesses can see cost differences of $5-$44 per month for the same coverage profile, depending on the insurer and location. Shopping around annually helps you catch better rates as your business circumstances change.
Estimated savings: Variable, up to $44/month
Commercial Auto Insurance Cost: Bottom Line
Commercial auto insurance costs vary dramatically by vehicle type, with sedans and SUVs costing just $63-$70 monthly for state minimum coverage, while for-hire vehicles like taxis and buses run $359-$432 monthly. Location plays a significant role, as rural states like Idaho and Pennsylvania offer rates 20-33% below national averages. Your biggest cost decision is coverage level: upgrading from state minimum to $1M liability adds approximately $750-$840 monthly.
Cost of Commercial Auto Insurance: FAQ
Here are answers to the most common questions about commercial auto insurance costs:
Is commercial auto insurance tax-deductible?
Yes, commercial auto insurance premiums are tax-deductible as a business expense. You can deduct the full cost on Schedule C (sole proprietors) or as a business expense for corporations and partnerships.
Do I need commercial auto insurance if I have personal auto insurance?
You need commercial auto insurance if you use your vehicle for business activities. Personal auto policies exclude business use, which means insurers can deny claims if you're driving for work when an accident occurs.
What's the difference between commercial auto insurance and business auto insurance?
Commercial and business auto insurance are the same product with different names. Both terms refer to insurance coverage for vehicles used for business purposes, with identical coverage requirements and pricing.
How much commercial auto insurance do I need?
Your needs depend on your vehicle value, business operations and state requirements. State minimum coverage costs $84-$93/month for standard vehicles, but businesses with substantial assets should consider $1M liability coverage at approximately $840/month.
Does commercial auto insurance cover personal use?
Most commercial auto policies provide limited coverage for personal use of business vehicles. Insurers allow incidental personal use like commuting or running errands, but extensive personal use may require a separate endorsement.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
He writes about economics and insurance, breaking down complex topics so people know what they're buying.