Commercial Auto Insurance Requirements (2025 Guide)

Updated: August 25, 2025

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Key Takeaways

You must carry commercial auto insurance for vehicles used on the job, with legal requirements set by state or federal law.

You may also need general liability, hired/non-owned auto or tools and equipment coverage, depending on your industry risks.

To meet commercial auto insurance requirements, assess vehicle use, gather business documents and compare quotes from specialized insurers.

What Commercial Auto Insurance is Required?

Your personal auto insurance won't cover business vehicle use, so you need commercial auto insurance for any vehicle you use for work. Otherwise, you're putting your business at risk for liability claims from accidents during work-related trips.

When employees use personal vehicles for business purposes, like driving to client meetings, making deliveries or running errands, you need a different type of coverage. Hired and non-owned auto (HNOA) provides liability protection when employees drive their own cars for business or when you rent vehicles.

Commercial Auto Insurance Requirements by State

Each state sets its own rules for commercial auto insurance. Some require only basic liability coverage, while others require you to have uninsured motorist insurance or personal injury protection.

Find your state's minimums below:

State	Required Coverage and Minimum Limits	Special Requirements
Alabama	• Bodily injury liability: $25,000 per person/$50,000 per accident • Property damage liability: $25,000 per accident	Property carriers >10,000 lbs: $300,000–750,000 depending on cargo type
Alaska	• Bodily injury liability: $50,000 per person/$100,000 per accident • Property damage liability: $25,000 per accident	Passenger carriers: $500,000 BI/$200,000 PD
Arizona	• Bodily injury liability: $25,000 per person/$50,000 per accident • Property damage liability: $15,000 per accident	Hazmat carriers: $1M–$5M CSL depending on substance
Arkansas	• Bodily injury liability: $25,000 per person/$50,000 per accident • Property damage liability: $25,000 per accident	Property carriers: 50/100/30
California	• Bodily injury liability: $30,000 per person/$60,000 per accident • Property damage liability: $15,000 per accident	Interstate vehicles with USDOT/MC: $750,000 CSL minimum
Colorado	• Bodily injury liability: $25,000 per person/$50,000 per accident • Property damage liability: $15,000 per accident	Interstate vehicles: $750,000 CSL minimum
Connecticut	• Bodily injury liability: $25,000 per person/$50,000 per accident • Property damage liability: $25,000 per accident • Uninsured/underinsured motorist (UM/UIM): $25,000 per person/$50,000 per accident • Personal injury protection (PIP): $20,000 per person/$40,000 per accident	Passenger vehicles >8 passengers: $1.5M; >16 passengers: $5M
Delaware	• Bodily injury liability: $25,000 per person/$50,000 per accident • Property damage liability: $10,000 per accident • Personal injury protection (PIP): $15,000 per person/$30,000 per accident	Taxicabs: $26,000 BI/$11,000 PD minimum
Florida	• Property damage liability: $10,000 per accident • Personal injury protection (PIP): $10,000	No-fault state Bodily injury liability not required except for DUI convictions and taxis ($125,000/$250,000)
Georgia	• Bodily injury liability: $25,000 per person/$50,000 per accident • Property damage liability: $25,000 per accident	Higher limits required for larger vehicles and interstate operations
Hawaii	• Bodily injury liability: $20,000 per person/$40,000 per accident • Property damage liability: $10,000 per accident • Personal injury protection (PIP): $10,000 per person	Property carriers: 250/750/250
Idaho	• Bodily injury liability: $25,000 per person/$50,000 per accident • Property damage liability: $15,000 per accident • Uninsured/underinsured motorist (UM/UIM): $25,000 per person/$50,000 per accident (opt-out available in writing)	Property carriers: $750,000 CSL for non-hazardous materials
Illinois	• Bodily injury liability: $25,000 per person/$50,000 per accident • Property damage liability: $20,000 per accident • Uninsured/underinsured motorist (UM/UIM): $25,000 per person/$50,000 per accident	Standard commercial requirements apply
Indiana	• Bodily injury liability: $25,000 per person/$50,000 per accident • Property damage liability: $25,000 per accident	Higher limits for commercial carriers
Iowa	• Bodily injury liability: $25,000 per person/$50,000 per accident • Property damage liability: $15,000 per accident	Vehicles >10,000 lbs: $750,000 liability for non-hazardous; $5M for hazardous
Kansas	• Bodily injury liability: $25,000 per person/$50,000 per accident • Property damage liability: $25,000 per accident • Personal injury protection (PIP): - $4,500 medical expenses - $900/month lost wages (12 months) - $4,500 rehabilitation - $25/day essential services - $2,000 funeral expenses	No-fault state requirements apply
Kentucky	• Bodily injury liability: $25,000 per person/$50,000 per accident • Property damage liability: $25,000 per accident • Personal injury protection (PIP): $10,000 per person per accident	No-fault state requirements apply
Louisiana	• Bodily injury liability: $15,000 per person/$30,000 per accident • Property damage liability: $25,000 per accident	Standard commercial requirements apply
Maine	• Bodily injury liability: $50,000 per person/$100,000 per accident • Property damage liability: $25,000 per accident • Uninsured/underinsured motorist (UM/UIM): $50,000 per person/$100,000 per accident • Medical payments coverage (MedPay): $2,000 per person	Higher baseline requirements
Maryland	• Bodily injury liability: $30,000 per person/$60,000 per accident • Property damage liability: $15,000 per accident • Uninsured/underinsured motorist (UM/UIM): $30,000 per person/$60,000 per accident (includes property damage)	Baltimore area taxis: 30/60/15 or $75,000 CSL
Massachusetts	• Bodily injury liability: $20,000 per person/$40,000 per accident • Property damage liability: $5,000 per accident • Personal injury protection (PIP): $8,000 per person • Uninsured/underinsured motorist (UM/UIM): $20,000 per person/$40,000 per accident	No-fault state; UM/UIM required
Michigan	• Bodily injury liability: $50,000 per person/$100,000 per accident • Property damage liability: $10,000 per accident • Personal injury protection (PIP): Options include unlimited, $500,000, $250,000, $50,000 (Medicaid enrollees), or opt-out (Medicare enrollees)	Freight vehicles >10,000 lbs have higher requirements
Minnesota	• Bodily injury liability: $30,000 per person/$60,000 per accident • Property damage liability: $10,000 per accident • Personal injury protection (PIP): $40,000 per person ($20,000 medical, $20,000 wage loss/replacement services)	No-fault state requirements apply
Mississippi	• Bodily injury liability: $25,000 per person/$50,000 per accident • Property damage liability: $25,000 per accident	Standard commercial requirements apply
Missouri	• Bodily injury liability: $25,000 per person/$50,000 per accident • Property damage liability: $25,000 per accident • Uninsured motorist (UM): $25,000 per person/$50,000 per accident	Standard commercial requirements apply
Montana	• Bodily injury liability: $25,000 per person/$50,000 per accident • Property damage liability: $20,000 per accident	Standard commercial requirements apply
Nebraska	• Bodily injury liability: $25,000 per person/$50,000 per accident • Property damage liability: $25,000 per accident • Uninsured/underinsured motorist (UM/UIM): $25,000 per person/$50,000 per accident	Standard commercial requirements apply
Nevada	• Bodily injury liability: $25,000 per person/$50,000 per accident • Property damage liability: $20,000 per accident	Standard commercial requirements apply
New Hampshire	• Financial responsibility required, but insurance not mandatory • If insurance purchased: • Bodily injury liability: $25,000 per person/$50,000 per accident • Property damage liability: $25,000 per accident • Medical payments: $1,000 • Uninsured motorist: $25,000 per person/$50,000 per accident	Alternative to insurance: Financial responsibility may be demonstrated through other means. Commercial vehicles with USDOT numbers may need additional federal coverage requirements.
New Jersey	• Bodily injury liability: $15,000 per person/$30,000 per accident • Property damage liability: $5,000 per accident • Personal injury protection (PIP): $15,000 minimum (up to $250,000 available; automatic expansion to $250,000 for catastrophic injuries)	No-fault state; minimum limits increasing in 2026
New Mexico	• Bodily injury liability: $25,000 per person/$50,000 per accident • Property damage liability: $10,000 per accident	Standard commercial requirements apply
New York	• Bodily injury liability: $25,000 per person/$50,000 per accident • Property damage liability: $10,000 per accident • Personal injury protection (PIP): $50,000 • Uninsured motorist (UM): $25,000 per person/$50,000 per accident	No-fault state with additional requirements
North Carolina	• Bodily injury liability: $30,000 per person/$60,000 per accident • Property damage liability: $25,000 per accident • Uninsured/underinsured motorist (UM/UIM): $30,000 per person/$60,000 per accident	Vehicles >26,000 lbs: 100/300/50
North Dakota	• Bodily injury liability: $25,000 per person/$50,000 per accident • Property damage liability: $25,000 per accident • Personal injury protection (PIP): $30,000 per person • Uninsured/underinsured motorist (UM/UIM): $25,000 per person/$50,000 per accident	No-fault state
Ohio	• Bodily injury liability: $25,000 per person/$50,000 per accident • Property damage liability: $25,000 per accident	Standard commercial requirements apply
Oklahoma	• Bodily injury liability: $25,000 per person/$50,000 per accident • Property damage liability: $25,000 per accident	Standard commercial requirements apply
Oregon	• Bodily injury liability: $25,000 per person/$50,000 per accident • Property damage liability: $20,000 per accident • Uninsured/underinsured motorist (UM/UIM): $25,000 per person/$50,000 per accident	Standard commercial requirements apply
Pennsylvania	• Bodily injury liability: $15,000 per person/$30,000 per accident • Property damage liability: $5,000 per accident • Personal injury protection (PIP): $5,000 minimum medical benefits (up to $100,000+ available; optional add-ons for lost wages, funeral expenses)	No-fault state; lower baseline requirements
Rhode Island	• Bodily injury liability: $25,000 per person/$50,000 per accident • Property damage liability: $25,000 per accident	Standard commercial requirements apply
South Carolina	• Bodily injury liability: $25,000 per person/$50,000 per accident • Property damage liability: $25,000 per accident • Uninsured/underinsured motorist (UM/UIM): $25,000 per person/$50,000 per accident	Standard commercial requirements apply
South Dakota	• Bodily injury liability: $25,000 per person/$50,000 per accident • Property damage liability: $25,000 per accident • Uninsured/underinsured motorist (UM/UIM): $25,000 per person/$50,000 per accident	Standard commercial requirements apply
Tennessee	• Bodily injury liability: $25,000 per person/$50,000 per accident • Property damage liability: $15,000 per accident	Standard commercial requirements apply
Texas	• Bodily injury liability: $30,000 per person/$60,000 per accident • Property damage liability: $25,000 per accident • Personal injury protection (PIP): $2,500 minimum (automatically included unless waived in writing; higher limits available)	Additional requirements for vehicles with DOT numbers
Utah	• Bodily injury liability: $25,000 per person/$65,000 per accident • Property damage liability: $15,000 per accident • Personal injury protection (PIP): $3,000 minimum - Medical expenses - Lost wages up to $250/week or 85% of income for 52 weeks - Burial costs up to $1,500	No-fault state requirements apply
Vermont	• Bodily injury liability: $25,000 per person/$50,000 per accident • Property damage liability: $10,000 per accident • Uninsured/underinsured motorist (UM/UIM): $50,000 per person/$100,000 per accident	Standard commercial requirements apply
Virginia	• Bodily injury liability: $25,000 per person/$50,000 per accident • Property damage liability: $20,000 per accident • Uninsured/underinsured motorist (UM/UIM): $50,000 per person/$100,000 per accident (effective Jan 1, 2025; includes property damage $25,000)	Standard commercial requirements apply
Washington	• Bodily injury liability: $25,000 per person/$50,000 per accident • Property damage liability: $10,000 per accident	Freight vehicles have weight-based requirements
West Virginia	• Bodily injury liability: $25,000 per person/$50,000 per accident • Property damage liability: $25,000 per accident • Uninsured/underinsured motorist (UM/UIM): $25,000 per person/$50,000 per accident	Passenger vehicles have capacity-based requirements
Wisconsin	• Bodily injury liability: $25,000 per person/$50,000 per accident • Property damage liability: $10,000 per accident • Uninsured/underinsured motorist (UM/UIM): $25,000 per person/$50,000 per accident	Standard commercial requirements apply
Wyoming	• Bodily injury liability: $25,000 per person/$50,000 per accident • Property damage liability: $20,000 per accident	Standard commercial requirements apply

Disclaimer

Requirements shown are state minimums. Many businesses need higher limits and additional coverage types not listed here.

Federal Commercial Vehicle Requirements

Most states treat commercial and personal vehicles the same when it comes to liability minimums. But if your business falls into certain categories, you'll face much higher federal requirements from the Federal Motor Carrier Safety Administration (FMCSA):

Interstate commerce

Transporting goods or passengers across state lines for compensation requires motor carrier numbers (MC numbers) and higher insurance minimums. General freight carriers operating vehicles over 10,001 lbs need $750,000 minimum liability coverage.

Hazardous material transport

Any business hauling hazmat faces federal oversight regardless of whether they cross state lines. These operations require $5,000,000 minimum liability coverage, making this the highest federal requirement.

High-capacity passenger transport

The federal government requires higher coverage for vehicles that carry multiple passengers in interstate service. Buses and vans built for 16 or more passengers need $5,000,000 liability, while smaller passenger vehicles (those that can seat between nine and 15 passengers) require $1,500,000.

Is Minimum Commercial Auto Insurance Enough?

Minimum commercial auto insurance rarely provides adequate protection for most businesses. Some states only require $25,000 per person, which may not be sufficient protection. The Centers for Disease Control and Prevention (CDC) put the average cost of medical bills from motor vehicle accidents at $14,126 in 2023.

Severe cases requiring hospitalization can cost much more. Most companies need higher liability limits and coverage beyond basic commercial auto to protect their business properly.

Recommendations by Industry

Businesses face varying risks requiring specific coverage beyond minimum commercial auto insurance. Industries with expensive equipment, frequent client visits or high-liability exposure need tailored financial protection.


Construction/Contractors	Tools and equipment coverage, general liability, workers' compensation	Heavy equipment and job site visits create high injury and property damage risks.
Plumbing/HVAC/Electrical	Tools coverage, professional liability, general liability	Service calls and specialized equipment require financial protection against damage claims.
Landscaping/Lawn Care	Equipment coverage, general liability, commercial property	Mowers and tools can cause property damage, and frequent residential work increases exposure.
Cleaning Services	Bonding, general liability, professional liability	Access to client properties creates potential for damage to expensive furnishings.
Real Estate Agents	Errors & Omissions, general liability	Client transportation and professional advice create dual liability exposure.
Food Delivery Services	Hired/non-owned auto coverage, general liability	Higher accident risk from frequent driving makes employee vehicle use common.
Courier/Package Delivery	Cargo coverage, hired/non-owned auto, general liability	Valuable cargo and time pressure increase accident and theft risks.
Moving Companies	Cargo coverage, workers' compensation, general liability	Heavy items and customer belongings require substantial financial protection.

How to Get Commercial Auto Insurance

Getting commercial auto insurance takes more paperwork than regular car insurance. Follow this step-by-step process:

1
Determine your coverage needs.
Identify which vehicles need coverage, how you use them for business and whether you need hired/non-owned auto coverage for employee vehicle use.
2
Gather business documentation.
Collect your business license, tax ID number, vehicle registrations, driver's licenses for all operators and Motor Vehicle Records (MVRs) for each driver. Document any safety training programs or driver policies your business maintains.
3
Document vehicle information.
Compile details for each vehicle, including VINs, model years, estimated annual mileage, primary use and any modifications or specialized equipment. Some insurers may require vehicle inspections for fleet coverage.
4
Calculate coverage amounts.
Review state minimums and federal requirements (if applicable), then determine appropriate liability limits based on your business assets and risk exposure.
5
Get multiple quotes.
Contact several insurers or work with a commercial insurance agent who can compare options from multiple carriers specialized in business coverage. Discuss payment options, including down payment requirements and monthly or annual payment schedules.
6
Review policy details.
Examine coverage limits, deductibles, exclusions and any industry-specific endorsements before deciding. Ask about claims reporting procedures, which often differ from personal auto policies.
7
Complete the application.
Provide accurate information about your business operations, safety programs and claims history. Commercial policies require more detailed applications than personal coverage.
8
Handle required filings.
If you operate interstate or need federal authority, your insurer must file forms like BMC-91 with the FMCSA. You'll also need to file BOC-3 (process agent) forms for each state you operate in.
9
Obtain proof of coverage.
Commercial policies provide certificates of insurance rather than standard ID cards. These certificates show coverage details that clients, lenders and regulatory agencies often require. Request temporary coverage if you need immediate proof while the insurer completes underwriting.
10
Schedule policy start date.
Coordinate your effective date to avoid coverage gaps, especially when switching from personal to commercial coverage or changing carriers.

Commercial Auto Insurance Requirements: Bottom Line

Using vehicles for work means you need commercial auto insurance. Requirements change based on what your business does and where you operate. Most small businesses should buy more than the bare minimum, so you'll want general liability coverage and protection tailored to your industry. Getting coverage means gathering paperwork on your vehicles and drivers, then working with insurers to get the right certificates.

Commercial Auto Insurance Requirements: FAQ

We gathered several frequently asked questions about commercial auto insurance requirements and answered them below:

What are the state and federal requirements for commercial auto insurance?

Minimum liability requirements vary by state, and federal thresholds apply to vehicles regulated at the federal level, like those hauling hazardous materials or carrying passengers. Your business must meet whichever standard is higher. Use the state coverage table and federal rules section to compare requirements.

Which industries benefit most from additional coverage beyond basic commercial auto insurance?

Businesses with specialized risks like construction, delivery or equipment hauling often need add-on coverage such as general liability, tools and equipment protection or specific cargo insurance to guard against common gaps standard policies don't cover.

What documentation do I need to buy commercial auto insurance?

Expect to provide basic business information (like legal structure and operations), driver and vehicle information and state or federally required licensing. Insurers use these details to assess risks and issue certificates of insurance as needed.

Can I use my personal auto policy for business use?

No, personal auto policies exclude business-related driving, leaving you unprotected if accidents happen while working. You need commercial auto insurance to keep your business legally and financially covered.

How should I avoid coverage gaps when I update or switch policies?

Time your new policy to begin before your current coverage ends. Going without insurance creates liability exposure, especially during insurer changes or when transitioning from personal coverage.

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!

Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.

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sources

Centers for Disease Control and Prevention. "WISQARS Cost of Injury." Accessed August 24, 2025.
Federal Motor Carrier Safety Administration. "eCFR :: 49 CFR Part 387 -- Minimum Levels of Financial Responsibility for Motor Carriers." Accessed August 24, 2025.
Federal Motor Carrier Safety Administration. "Insurance Filing Requirements." Accessed August 24, 2025.
Federal Motor Carrier Safety Administration. "Licensing and Insurance Requirements for For-Hire Motor Carriers of Passengers - Parts 365 & 387." Accessed August 24, 2025.

Commercial Auto Insurance Requirements

Key Takeaways

What Commercial Auto Insurance is Required?

Compare Small Business Insurance Rates

Commercial Auto Insurance Requirements by State

Federal Commercial Vehicle Requirements

Interstate commerce

Hazardous material transport

High-capacity passenger transport

Is Minimum Commercial Auto Insurance Enough?

Recommendations by Industry

How to Get Commercial Auto Insurance

Determine your coverage needs.

Gather business documentation.

Document vehicle information.

Calculate coverage amounts.

Get multiple quotes.

Review policy details.

Complete the application.

Handle required filings.

Obtain proof of coverage.

Schedule policy start date.