Commercial auto insurance costs depend on your coverage level. State minimum liability averages $149 monthly, while comprehensive 100/300/100 coverage with collision costs $385 monthly. Businesses needing $1 million in liability coverage pay an average of $421 monthly.
How Much Are Average Commercial Auto Insurance Costs?
Updated: November 25, 2025
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Key Takeaways
Commercial auto insurance costs range from $84-$93 monthly for standard business vehicles with state minimum coverage to $833-$934 monthly for for-hire vehicles with specialized passenger transport coverage.
Your total cost depends on five key factors: vehicle type, coverage level, location, industry, and driving record, with location creating rate variations of up to 33% between states.
Businesses can reduce costs by comparing multiple insurers (saving up to 33%), choosing appropriate coverage limits (saving $700+/month), and maintaining clean driving records (saving 20-33%).
How Much Does Commercial Auto Insurance Cost?
| $1,000,000 CSL (Combined Single Limit) Liability | $421 | $5,051 |
| 100/300/100 Liability Insurance With $1,000 deductible For Comp and Collision | $385 | $4,619 |
| State Minimum Liability | $149 | $1,785 |
Disclaimer
Cost estimates based on MoneyGeek's October 2025 analysis of commercial auto insurance quotes for small businesses with 1-5 vehicles and clean driving records. Actual premiums vary by location, driving history, vehicle type, and coverage selections.
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Industry
State
Factors That Affect Commercial Auto Insurance Costs
Vehicle type and coverage level have the biggest impact on your commercial auto insurance cost. Your location, industry, and driving history can change rates by 20-50%.
Location
State requirements and urban vs. rural operations
Vehicle Type
Standard sedans vs. specialized commercial vehicles
Industry
How insurers classify your business risk
Average Commercial Auto Insurance Cost by State
Location is the single biggest factor in your premium. Michigan averages $487/month while Maine averages $198/month (a 146% difference). Urban states with high traffic density and litigation rates consistently cost more. If you operate across multiple states, work with your agent to structure coverage efficiently based on where vehicles are garaged.
| Alabama | $95 | $1,038 |
| Arizona | $70 | $764 |
| Arkansas | $132 | $1,445 |
| Colorado | $95 | $1,094 |
| Delaware | $179 | $1,727 |
| Georgia | $133 | $1,501 |
| Hawaii | $63 | $396 |
| Idaho | $125 | $955 |
| Indiana | $133 | $1,453 |
| Iowa | $457 | $3,062 |
| Kansas | $95 | $1,080 |
| Kentucky | $78 | $868 |
| Louisiana | $95 | $1,099 |
| Minnesota | $335 | $3,851 |
| Mississippi | $179 | $1,960 |
| Montana | $335 | $3,129 |
| Nebraska | $95 | $1,039 |
| Nevada | $335 | $3,889 |
| New Hampshire | $184 | $1,536 |
| New Mexico | $132 | $1,187 |
| North Carolina | $434 | $5,161 |
| North Dakota | $78 | $679 |
| Ohio | $133 | $1,520 |
| Oklahoma | $335 | $3,639 |
| Oregon | $179 | $2,023 |
| Pennsylvania | $132 | $781 |
| South Carolina | $133 | $1,549 |
| Tennessee | $230 | $2,517 |
| Utah | $432 | $4,695 |
| Vermont | $457 | $2,963 |
| Washington | $70 | $773 |
| West Virginia | $78 | $882 |
| Wisconsin | $78 | $649 |
| Wyoming | $70 | $760 |
Disclaimer
State averages based on MoneyGeek's October 2025 analysis for small businesses with $1M CSL liability coverage. Rates reflect regional differences in minimum requirements, accident frequency, and legal environments. Confirm current rates with insurers.
Average Commercial Auto Insurance Cost by Vehicle Type
Standard business vehicles with state minimum coverage cluster around $84-$93/month, while for-hire vehicles range from $833-$934/month.
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 |
Source
MoneyGeek analysis of commercial auto insurance quotes from 15 major insurers, October 2025.
Average Commercial Auto Insurance Cost by Industry
Your industry accounts for 20-30% of your commercial auto insurance cost based on risk classification. Financial services businesses pay the lowest rates at $63 monthly, while transportation and trucking businesses pay $277 monthly due to higher road exposure and liability risk.
| Financial Services | $63 | $750 |
| Professional Services | $66 | $794 |
| Medical/Healthcare | $67 | $801 |
| Retail | $73 | $876 |
| Cleaning/Janitorial | $77 | $921 |
| Agriculture/Farming | $102 | $1,227 |
| Restaurants and Food Delivery | $106 | $1,268 |
| Contractors/Construction | $141 | $1,688 |
| Manufacturing | $193 | $2,312 |
| Transportation/Trucking | $277 | $3,325 |
Source
MoneyGeek analysis of commercial auto insurance quotes from 15 major insurers across all industries, October 2025.
How to Lower Commercial Auto Insurance Costs
Seven strategies can reduce your commercial auto insurance premiums based on our analysis of 15 major insurers across all 50 states.
- 1Compare quotes from multiple insurers
We found price differences of $44 per month for identical coverage between insurers. Regional carriers often beat national insurers for specific vehicle types and industries.
- Get quotes from 3-5 insurers
- Provide identical information for accurate comparisons
- Compare coverage details, not just price
- Ask about industry-specific discounts
Savings: Up to 33% ($15-$44/month)
- 2Choose the Right Vehicle for Your Business
Standard vehicles cost $84-$93 monthly. For-hire vehicles cost $833-$934 monthly. Match your vehicle to your actual needs.
- Avoid for-hire classifications if you don't transport passengers for payment
- Choose sedans or SUVs when cargo capacity isn't essential
- Consider vehicle age (newer vehicles cost more)
- Evaluate if specialized vehicles are necessary
Savings: $740+/month by using standard vehicles
- 3Select Appropriate Coverage Limits
State minimum costs $84-$93 monthly. $1M liability costs $840-$884 monthly. Match coverage to your risk exposure.
- Start with your state's minimum requirements
- Assess your business assets and liability exposure
- Consider 100/300/100 as middle ground ($147/month)
- Add umbrella policies for extra protection at lower cost
Savings: $700-$795/month if state minimum meets your needs
- 4Implement Fleet Safety Programs
States with better loss ratios show 20-33% savings. Formal safety programs qualify you for discounts.
- Establish written driver safety policies
- Conduct quarterly driver training
- Maintain vehicles and keep documentation
- Install dash cameras for disputed claims
- Create incident reporting systems
Savings: 20-33% with clean safety records
- 5Increase Your Deductibles
Higher deductibles reduce premiums by transferring risk to your business. Best when you have emergency funds.
- Review current deductibles
- Compare premiums for $500, $1,000, and $2,500 deductibles
- Ensure you can afford higher deductibles from cash reserves
- Consider higher deductibles for comprehensive coverage first
Savings: 15-30% on comprehensive and collision portions
- 6Bundle Policies
Multi-policy discounts apply when you combine commercial auto with other business insurance.
- Ask about bundling with general liability
- Combine property and auto policies
- Inquire about commercial package policies (BOP + auto)
- Compare total costs (bundling sometimes means higher per-policy rates)
Savings: 5-15% per policy
- 7Install Telematics and Safety Devices
GPS tracking, dash cameras, and telematics demonstrate you monitor driving behavior, qualifying you for technology discounts.
- Install GPS fleet tracking
- Add dash cameras to all vehicles
- Use telematics for speed, braking, and acceleration tracking
- Share data with your insurer for usage-based discounts
- Install anti-theft devices
Savings: 5-20% with approved programs
Commercial Auto Insurance Cost: Bottom Line
Commercial auto insurance costs $63-$1,001 monthly depending on your vehicle and business use. Sedans with basic coverage start around $63/month, while passenger transport vehicles run closer to $1,000 due to higher liability risks. Adding $1M coverage costs an extra $750-$795 monthly. Compare quotes from at least three insurers and save up to 33%.
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. 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?
Yes, if you use your vehicle for business activities. Personal auto policies exclude business use. 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?
They're the same product with different names. Both refer to insurance for vehicles used for business purposes, with identical coverage requirements and pricing.
How much commercial auto insurance do I need?
It depends on your vehicle value, business operations, and state requirements. State minimum costs $84-$93/month for standard vehicles. Businesses with substantial assets should consider $1M liability at about $840/month.
Does commercial auto insurance cover personal use?
Most policies provide limited coverage for personal use. Insurers allow incidental personal use like commuting or errands. 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.