How to Find Cheap Auto Insurance for Your Small Business

Last Updated on December 15, 2025

Cheap auto insurance for your small business isn’t always “easy” — but it is doable when you shop the right way.

The key is getting the right type of policy (so claims don’t get denied), choosing coverage that matches your real risk, and comparing quotes from multiple commercial insurers and agents.

Here’s what to know about finding affordable commercial auto insurance for almost any small business.

Key Takeaways

• A personal auto policy may not cover business driving — so the cheapest “solution” can become very expensive if a claim is denied.
• Commercial auto insurance can cover business-owned vehicles and employees who drive them, and many businesses add hired/non-owned auto liability if employees use personal cars for work.
• Small-business commercial auto costs vary widely, but many businesses pay around $147/month as a median benchmark — with higher costs for delivery, towing, and for-hire trucking.
• The best way to find cheap coverage is to compare 5–10 quotes using the same vehicles/drivers/limits, then stack discounts and set deductibles you can afford.

How Commercial Auto Insurance Works

Many small businesses need auto insurance — and a standard personal car insurance policy may not cover business use.

If you have a house cleaning business, for example, and drive your car between homes, your insurer may consider that business use. If you only have a personal policy, a claim could be denied (or you could be dropped) if your policy excludes that type of driving.

That’s why many business owners buy commercial auto insurance. In plain English, commercial auto insurance can:

• Cover one or more business-owned vehicles (cars, vans, pickups, trucks, etc.)
• Extend coverage to employees who drive company vehicles for work
• Offer liability-only or full coverage (liability + collision/comprehensive), depending on how much protection you want
• Add options for things like towing, rental reimbursement, and more

What about employees using their own cars? If employees drive their personal vehicles for work errands (deliveries, client visits, job sites), many businesses add “hired and non-owned auto” liability coverage. This can help protect the business if you’re sued after an employee causes an accident while driving for work. (It usually doesn’t pay to repair the employee’s car — it’s primarily liability protection.)

Many large and regional insurers offer commercial auto policies. The best way to find a good price is to compare quotes using the same vehicles, drivers, and coverage limits.

How to Find Cheap Commercial Auto Insurance

The best way to find cheap commercial auto insurance is to combine smart coverage choices with aggressive quote shopping:

Consider Your Needs: Some small businesses are over-insured (paying for coverage they don’t need), while others are underinsured (risking a lawsuit that could cripple the business). Pick coverage limits that protect your business without overbuying.

Compare 5 to 10 Quotes: Commercial pricing varies a lot by industry. A contractor, delivery driver, and consultant can get very different rates — even in the same ZIP code. Comparing multiple quotes (including regional carriers through an independent agent) is often where the biggest savings are found.

Take Advantage of Discounts: Commercial auto policies can offer savings for things like paying for your policy in full upfront, bundling business policies with the same carrier, having experienced drivers, using certain safety/anti-theft features, and keeping mileage lower.

Maintain a Clean Driving Record: Insurers check the motor vehicle records of owners and employees who drive for work. One risky driver can raise the premium for the whole policy. Many carriers look back roughly 3–5 years for major violations and accidents (varies by company and state).

Bundle Your Business Insurance Strategically: A businessowners policy (BOP) can be a smart way to bundle certain coverages for a discount — but it typically does not replace commercial auto. Instead, bundling your BOP and commercial auto with the same insurer can sometimes unlock meaningful multi-policy savings.

Do You Need Commercial Auto Insurance?

Some businesses need commercial auto insurance, while others do not.

Generally, if your business involves driving between job sites, carrying tools or equipment, transporting clients, or delivering goods, you should assume you need commercial coverage (or a business-use policy classification) — and confirm the details with your insurer in writing.

You also typically need commercial auto insurance if your business owns any vehicles.

If you answer yes to any of the following questions, then you generally need a commercial auto insurance policy:

• Does your business own one or more vehicles?
• Do you drive to and from job sites?
• Do you carry tools, equipment, or products for your business in company vehicles, your own vehicle, or employees’ vehicles?
• Do you provide trucking and freight transportation using your vehicle? (i.e., you ship vehicles on your truck)
• Do you deliver goods or services to customers using vehicles? (i.e., you drive for Uber Eats, DoorDash, Walmart, or deliver pizzas)
• Do you transport clients or employees using vehicles? (i.e., you drive for Uber or Lyft)
• Do you sell products or food from your vehicle? (i.e., you operate a food truck)

Many businesses are surprised to learn their personal auto policy won’t cover certain business driving. If you regularly use a vehicle for work (or employees use their vehicles on your behalf), confirm your coverage now — not after an accident.

What Does Commercial Auto Insurance Cover?

Standard commercial auto insurance coverage can include:

Liability Coverage: Liability coverage includes bodily injury and property damage liability coverage. If you or an employee injure someone or damage property and you’re found at fault, liability coverage can pay for injuries, repairs, and legal defense costs (up to your limits).

Collision & Comprehensive Coverage: Collision and comprehensive coverage are optional, but they can protect your vehicles from accident damage and non-accident losses like theft, vandalism, hail, fire, and animal strikes (minus your deductible).

Medical Payments Coverage: Some commercial auto insurance policies include medical payments coverage. It can help pay medical bills for the driver and passengers after an accident, regardless of fault (coverage rules vary by state).

Uninsured Motorist Coverage: A significant share of U.S. drivers are uninsured — about 15.4% (more than 1 in 7) in the most recently reported year of data. If your vehicle is hit by an uninsured driver or involved in a hit-and-run, uninsured motorist coverage can help (availability/requirements vary by state). For background stats, see the Insurance Information Institute’s summary here.

Other Coverages: Depending on your insurer and state, you may also be able to add:

• Rental reimbursement coverage, which helps pay for a temporary replacement vehicle while yours is being repaired
• Towing and labor coverage, which covers towing and other roadside assistance incidents
• Gap coverage, which covers the “gap” between a financed/leased vehicle’s value and what you still owe after a total loss

How Much Does Small Business Auto Insurance Cost?

Commercial auto insurance costs vary widely based on your industry, vehicles, drivers, and how the vehicles are used. As a general benchmark, many small businesses pay around $147 per month (about $1,762 per year) for commercial auto insurance, based on median policy data from a major small-business insurance marketplace.

However, your price could be much lower (for a single low-risk vehicle with experienced drivers) or much higher (for delivery, towing, for-hire trucking, multiple drivers, or high-value vehicles).

Because commercial coverage is often more expensive than personal auto insurance, some owners try to “just use personal insurance.” That can backfire. If you get into an accident while conducting business and only have a standard personal auto insurance policy, your claim could be denied.

Factors Impacting the Cost of Small Business Auto Insurance

Insurers consider many factors when calculating small business auto insurance premiums. Some of the biggest cost drivers include:

• ZIP code and where vehicles are garaged/parked
• Industry and profession (delivery and towing are usually higher risk than office-based businesses)
• Vehicle type, weight, value, and repair costs (cargo vans and trucks often cost more than sedans)
• Annual mileage and how vehicles are used (job sites vs. deliveries vs. transporting people)
• Driver experience, accident/violation history, and number of drivers
• Coverage limits, deductibles, and whether you add collision/comprehensive

There’s a big difference in risk between a one-person business that makes occasional trips to the post office and a contracting company with multiple employees driving to job sites all day. That risk difference shows up in the premium.

FAQs on Cheap Commercial Auto Insurance

Final Word – Cheap Small Business Car Insurance

Finding affordable small business auto insurance is mostly about two things: getting the correct policy type for your driving, and shopping multiple quotes with the same coverage.

Compare insurers, ask about discounts, set sensible deductibles, and make sure every business driver is properly listed and rated. That’s how you get a competitive price and coverage that will actually pay when you need it.