Commercial Auto Insurance​

Commercial Auto Insurance protects your business from liability and physical damage lawsuits related to accidents caused by company vehicles or private vehicles operating for business purposes. Potential exposure¬ is significant, because even a small, private vehicle driven on short errands is capable of causing extensive property damage and physical harm or death. Vehicles owned, leased, hired, or rented by your company — and even vehicles owned by others but driven in the operations of the business — all expose your company to liability and as such coverage should be carefully considered.

What Do Commercial Auto Insurance Policies Cover?

The damage caused by an accident can vary dramatically, depending on the extent of the injuries to people and damage to property. Does your business have the liquid assets to handle those costs? If you don’t, or if that isn’t how you want to spend your money, the Insurance Services Office (ISO) Business Auto Coverage Form is designed to protect you. The ISO Business Auto Coverage Form protects your assets in several ways:
  • Auto liability coverage insures your legal obligations that arise from an accident, including lawsuits and their associated costs. The limits you purchase should be high enough to handle the potentially serious injuries and loss of earnings a victim may sustain.
  • Uninsured and underinsured motorists coverages protect you when you are involved in an accident caused by a driver who has no insurance or insurance with relatively low limits. The limits you select for this coverage should be the same as your liability limits.
  • Physical damage coverage on vehicles directly protects your assets. Comprehensive, Specific Causes of Loss and Collision are the coverage options available. Deductibles should be as high as you can comfortably absorb to maximize the protection provided relative to the premium cost.
  • Medical payments coverage and towing expense costs for private passenger vehicles are other optional coverages to consider. Coverage extends to all damages caused by an accident resulting from owning, maintaining, or using a covered auto in the course of business — due to bodily harm, property damage and even pollution costs. The provider also has the right, and duty, to defend the insured in lawsuits requesting such covered damages. The insurer will investigate, settle, or litigate on the insured’s behalf as it deems appropriate, and pay judgements and settlements until the liability limit of the insurance is exhausted.

What is Not Covered by Commercial Auto Insurance Policies?

Limits and exclusions exist is every form and policy of insurance. Some coverages are excluded because they are not needed in your line of business, others because the risk or liability is not considered insurable for a number of reasons. A few common commercial auto coverage exclusions include:
  • Bodily Injury To Employees
  • Care, Custody Or Control
  • Certain types of electronic devices
  • Contractual
  • Expected Or Intended Injury
  • Handling Of Property
  • Operations and Completed Operations
  • Pollution
  • War
  • Wear and Tear

Does my Business Need a Commercial Auto Insurance Policy?

Ask yourself these questions, if the answer is yes you need coverage. If the answer is no, you probably don’t. If the answer isn’t as simple as yes or no, talk to a T. Hudson advisor and we can help you determine your business’ actual needs.
  • If you transport goods or people, require higher liability insurance limits, or need specific commercial coverages, you’ll probably need a commercial auto policy.
  • If your car, van or truck is owned by the business, then you’ll probably need a business auto insurance policy.
  • If you use your vehicle for business purposes, you’ll most likely need a commercial auto insurance policy.
  • If the car, truck or van you drive weighs more than a normal size pickup or SUV, like a dump truck, tow truck, or tractor trailer, you might require a business auto insurance policy.
  • If your business car, van or truck requires higher liability limits, you will probably need commercial auto insurance. Business auto insurance policies offer higher limits than personal auto policies.
  • How Much Does Commercial Automobile Insurance Cost?

    Insurance companies determine Commercial Auto Insurance pricing by your business Location, Number of vehicles and drivers, industry, previous driving records, experience, and other factors. These factors will affect the pricing of your coverage:

    • Amount of coverage: The coverage limits you choose may affect the premium; the higher the coverage amount, the higher your premium. If you’re using your vehicle to conduct business, you may want to consider a higher liability limit so that the coverage will be sufficient to protect both your business and personal assets if you are sued due to an accident.
    • Amount of deductible: The cost of your insurance is directly linked to the amount of your deductible. The deductible is the amount of money that you agree to pay for a loss or claim before your insurer pays any monies for the remaining amount due to cover the cost of the claim. For example, if your vehicle incurred $10,000 of damage in an accident and your deductible is $5,000, you would pay the first $500 and your insurer would pay the remaining $9,500. The higher your deductible, the lower your premium.
    • Anti-theft devices: Alarm systems or tracking systems that locate your vehicle if stolen may reduce your premium.
    • Driving and claims history: Your personal driving record and the number of claims you have previously filed may affect your ability to obtain insurance in the private market and may impact the amount of your premium.
    • Garage location: Where you garage your vehicle may impact premiums. If you have access to an indoor garage or locked parking lot – places that decrease the likelihood of theft – you may qualify for a lower premium.
    • Geographic location: The geographic region in which your business operates may affect your premium. For example, areas prone to extreme weather – hail, windstorms, hurricanes, etc. – higher traffic patterns or higher risk of theft may have higher insurance rates.
    • Insurance history: Failing to maintain continuous automobile liability insurance coverage as required by law can result in a higher premium when new coverage is sought. An insurer may also refuse to provide coverage if you have had a lapse in coverage.
    • Safety devices: If you’re buying or leasing a new vehicle, consider getting one with anti-lock brakes, front and side airbags, automatic seat belts and daytime running lights; these safety devices may result in a lower premium.
    • Type of vehicle: Premiums are linked to the type of vehicle you drive. If you’re buying or leasing a new car or truck, check the insurance rates before you make your final choice.

    What Types of Vehicles does Commercial Auto Insurance Cover?

    The type of coverage on your company’s vehicles in your policy are determined by a number or set of numbers included in the coverage. Those numbers are called symbols and they explain what is included in your particular coverage.

    Symbols and their definitions:

    1. All autos are covered. No additional symbols are needed.
    2. All autos you own are covered.
    3. Only private passenger autos you own are covered.
    4. Only autos you own that are not classified as a private passenger are covered.
    5. Autos you own for which no-fault coverage is required are covered.
    6. Autos you own for which uninsured motorists coverage is required are covered.
    7. Only scheduled autos are covered.
    8. Any auto you hire, borrow, or lease is covered.
    9. Any auto not owned by you but used by an employee, volunteer or partner for your business is covered but only for your benefit.
    10. 19. Mobile equipment, if subject to financial responsibility laws.
    Symbol # Symbol Short Desc. Description Of Covered Auto Designation Symbols

    1

    Any Auto

    2

    Owned "Autos" Only

    Only those "autos" you own (and for Liability Coverage any "trailers" you don't own while attached to power units you own). This includes those "autos" you acquire ownership of after the policy begins.

    3

    Owned Private Passenger "Autos" Only

    Only the private passenger "autos" you own. This includes those private passenger "autos" you acquire ownership of after the policy begins.

    4

    Owned "Autos" Other Than Private Passenger "Autos" Only

    Only those "autos" you own that are not of the private passenger type (and for Li- ability Coverage any "trailers" you don't own while attached to power units you own). This includes those "autos" not of the private passenger type you acquire ownership of after the policy begins.

    5

    Owned "Autos" Subject To No- Fault

    Only those "autos" you own that are required to have No-Fault benefits in the state where they are licensed or principally garaged. This includes those "autos" you acquire ownership of after the policy begins providing, they are required to have No- Fault benefits in the state where they are licensed or principally garaged.

    6

    Owned "Autos" Subject To A Compulsory Un- insured Motorists Law

    Only those "autos" you own that because of the law in the state where they are li- censed or principally garaged are required to have and cannot reject Uninsured Motorists Coverage. This includes those "autos" you acquire ownership of after the policy begins providing, they are subject to the same state uninsured motorists requirement.

    7

    Specifically Described "Autos"

    Only those "autos" described in Item Three of the Declarations for which a premium charge is shown (and for Liability Coverage any "trailers" you don't own while attached to any power unit described in Item Three).

    8

    Hired "Autos" Only

    Only those "autos" you lease, hire, rent or borrow. This does not include any "auto" you lease, hire, rent, or borrow from any of your "employees", partners (if you are a partnership), members (if you are a limited liability company) or members of their households.

    9

    Non-owned "Autos" Only

    Only those "autos" you do not own, lease, hire, rent or borrow that are used in connection with your business. This includes "autos" owned by your "employees", partners (if you are a partnership), members (if you are a limited liability company), or members of their households but only while used in your business or your personal affairs.

    19

    Mobile Equip-

    Only those "autos" that are land vehicles and that would qualify under the definition of "mobile equipment" under this policy if they were not subject to a compulsory or financial responsibility law or other motor vehicle insurance law where they are licensed principally garaged.

    What are the Legal Requirements for Commercial Auto Insurance Financial Responsibility in my state?

    All 50 states require some form of insurance against damage liability in order to legally operate a vehicle for private or commercial driving, with very limited exclusions. Each state has different requirements and penalties, and most states’ commercial requirements are higher than private driver requirements. Beyond these requirements, many businesses have industry specific vehicle and company specific contract requirements. Talk to an advisor if you are not sure how to determine what your company’s requires liability coverage may be.

    State-By-State Minimum Private Auto Insurance Requirements:

    State Minimum Required Auto Insurance Limits

    Alabama

    • $25,000 bodily injury liability per person
    • $50,000 bodily injury liability per accident
    • $25,000 property damage liability per accident

    Alaska

    • $50,000 bodily injury liability per person
    • $100,000 bodily injury liability per accident
    • $25,000 property damage liability per accident

    Arizona

    • $15,000 bodily injury liability per person
    • $30,000 bodily injury liability per accident

    Arkansas

    • $15,000 bodily injury liability per person
    • $30,000 bodily injury liability per accident
    • $10,000 property damage liability per accident

    California

    • $15,000 bodily injury/death liability per person
    • $30,000 bodily injury/death liability to more than one person
    • $5,000 property damage liability per accident

    Colorado

    • $25,000 bodily injury liability per person
    • $50,000 bodily injury liability per accident
    • $15,000 property damage liability per accident

    Connecticut

    • $20,000 bodily injury liability per person
    • $40,000 bodily injury liability per accident
    • $25,000 property damage liability per accident
    • $25,000 uninsured/underinsured motorist coverage per person
    • $50,000 uninsured/underinsured motorist coverage per accident

    Delaware

    • $15,000 bodily injury or death per person
    • $25,000 bodily injury liability per accident
    • $10,000 property damage liability per accident Florida
    • $10,000 property damage liability per accident
    • $10,000 personal injury protection

    Georgia

    • $25,000 bodily injury liability per person
    • $50,000 bodily injury liability per accident
    • $25,000 property damage liability per accident

    Hawaii

    • $20,000 bodily injury liability per person
    • $40,000 bodily injury liability per accident
    • $10,000 property damage liability per accident
    • $10,000 personal injury protection

    Idaho

    • $25,000 bodily injury liability per person
    • $50,000 bodily injury liability per accident
    • $15,000 property damage liability per accident

    Illinois

    • $25,000 bodily injury liability per person
    • $50,000 bodily injury liability per accident
    • $20,000 property damage liability per accident
    • $25,000 uninsured motorist coverage per person
    • $50,000 uninsured motorist coverage per accident

    Indiana

    • $25,000 bodily injury liability per person
    • $50,000 bodily injury liability per accident
    • $25,000 property damage liability per accident

    Iowa

    • $20,000 bodily injury liability per person
    • $40,000 bodily injury liability per accident
    • $15,000 property damage liability per accident

    Kansas

    • $25,000 bodily injury liability per person
    • $50,000 bodily injury liability per accident
    • $10,000 property damage liability per accident
    • $25,000 uninsured/underinsured motorist coverage per person
    • $50,000 uninsured/underinsured motorist coverage per accident

    Kentucky

    • $25,000 bodily injury liability per person
    • $50,000 bodily injury liability per accident
    • $25,000 property damage liability per accident
    • $10,000 personal injury protection

    Louisiana

    • $15,000 bodily injury liability per person
    • $30,000 bodily injury liability per accident
    • $25,000 property damage liability per accident

    Maine

    • $50,000 bodily injury liability per person
    • $100,000 bodily injury liability per accident
    • $25,000 property damage liability per accident
    • $50,000 uninsured motorist coverage per person
    • $100,000 uninsured motorist coverage per accident
    • $2,000 medical payments coverage

    Maryland

    • $30,000 bodily injury liability per person
    • $60,000 bodily injury liability per accident
    • $15,000 property damage liability per accident

    Massachusetts

    • $20,000 bodily injury liability per person
    • $40,000 bodily injury liability per accident
    • $5,000 property damage liability per accident
    • $20,000 uninsured motorist coverage per person
    • $40,000 uninsured motorist coverage per accident
    • $8,000 personal injury protection

    Michigan

    • $20,000 bodily injury liability per person
    • $40,000 bodily injury liability per accident
    • $10,000 property damage liability per accident

    Minnesota

    • $30,000 bodily injury liability per person
    • $60,000 bodily injury liability per accident
    • $10,000 property damage liability per accident
    • $25,000 uninsured/underinsured motorist coverage per person
    • $50,000 uninsured/underinsured motorist coverage per accident
    • $40,000 personal injury protection

    Mississippi

    • $25,000 bodily injury liability per person
    • $50,000 bodily injury liability per accident
    • $25,000 property damage liability per accident

    Missouri

    • $25,000 bodily injury liability per person
    • $50,000 bodily injury liability per accident
    • $10,000 property damage liability per accident
    • $25,000 uninsured motorist coverage per person
    • $50,000 uninsured motorist coverage per accident

    Montana

    • $25,000 bodily injury liability per person
    • $50,000 bodily injury liability per accident
    • $20,000 property damage liability per accident

    Nebraska

    • $25,000 bodily injury liability per person
    • $50,000 bodily injury liability per accident
    • $25,000 property damage liability per accident
    • $25,000 uninsured motorist coverage per person
    • $50,000 uninsured motorist coverage per accident

    Nevada

    • $25,000 bodily injury liability per person
    • $50,000 bodily injury liability per accident
    • $20,000 property damage liability per accident

    New Hampshire

    • Auto insurance is not mandatory in NH.
      There is no minimum car insurance requirement,
      but state law does require you to pay for any bodily
      injury or property damage arising from your operation
      of a vehicle that you own.

    New Jersey

    • $15,000 bodily injury liability per person
    • $30,000 bodily injury liability per accident
    • $5,000 property damage liability per accident
    • $15,000 uninsured motorist bodily injury

    New Mexico

    • $25,000 bodily injury liability per person
    • $50,000 bodily injury liability per accident
    • $10,000 property damage liability per accident

    New York

    • $25,000 bodily injury liability per person
    • $50,000 bodily injury liability per accident
    • $50,000 liability for death per person
    • $100,000 liability for death per accident
    • $10,000 property damage liability per accident
    • $50,000 personal injury protection
    • $25,000 uninsured motorist coverage per person
    • $50,000 uninsured motorist coverage per accident

    North Carolina

    • $30,000 bodily injury liability per person
    • $60,000 bodily injury liability per accident
    • $25,000 property damage liability per accident
    • $30,000 uninsured motorist coverage per person
    • $60,000 uninsured motorist coverage per accident
    • $25,000 uninsured motorist property damage coverage per accident

    North Dakota

    • $25,000 bodily injury liability per person
    • $50,000 bodily injury liability per accident
    • $25,000 property damage liability per accident
    • $25,000 uninsured/underinsured motorist coverage per person
    • $50,000 uninsured/underinsured motorist coverage per accident
    • $30,000 personal injury protection

    Ohio

    • $25,000 bodily injury liability per person
    • $50,000 bodily injury liability per accident
    • $25,000 property damage liability per accident

    Oklahoma

    • $25,000 bodily injury liability per person
    • $50,000 bodily injury liability per accident
    • $25,000 property damage liability per accident

    Oregon

    • $25,000 bodily injury liability per person
    • $50,000 bodily injury liability per accident
    • $20,000 property damage liability per accident
    • $25,000 uninsured motorist coverage per person
    • $50,000 uninsured motorist coverage per accident
    • $15,000 personal injury protection

    Pennsylvania

    • $15,000 bodily injury liability per person
    • $30,000 bodily injury liability per accident
    • $5,000 property damage liability per accident
    • $5,000 medical benefits

    Rhode Island

    • $25,000 bodily injury liability per person
    • $50,000 bodily injury liability per accident
    • $25,000 property damage liability per accident

    South Carolina

    • $25,000 bodily injury liability per person
    • $50,000 bodily injury liability per accident
    • $25,000 property damage liability per accident
    • $25,000 uninsured motorist coverage per person
    • $50,000 uninsured motorist coverage per accident
    • $25,000 uninsured motorist property damage coverage

    South Dakota

    • $25,000 bodily injury liability per person
    • $50,000 bodily injury liability per accident
    • $25,000 property damage liability per accident
    • $25,000 uninsured/underinsured motorist coverage per person
    • $50,000 uninsured/underinsured motorist coverage per accident

    Tennessee

    • $25,000 bodily injury liability per person
    • $50,000 bodily injury liability per accident
    • $15,000 property damage liability per accident

    Texas

    • $30,000 bodily injury liability per person
    • $60,000 bodily injury liability per accident
    • $25,000 property damage liability per accident

    Utah

    • $25,000 bodily injury liability per person
    • $65,000 bodily injury liability per accident
    • $15,000 property damage liability per accident
    • $3,000 personal injury protection

    Virginia

    • VA has special conditions around auto insurance. 
      You do not necessarily have to buy auto insurance,
      according to the DMV, Virginia law requires that all
      drivers have a way to pay for injuries or property damage
      resulting from a car accident.

    Vermont

    • $25,000 bodily injury liability per person
    • $50,000 bodily injury liability per accident
    • $10,000 property damage liability per accident
    • $50,000 uninsured/underinsured motorist coverage per person
    • $100,000 uninsured/underinsured motorist coverage per accident
    • $10,000 uninsured/underinsured motorist property damage coverage per accident

    Washington

    • $25,000 bodily injury liability per person
    • $50,000 bodily injury liability per accident
    • $10,000 property damage liability per accident

    Washington D.C.

    • $25,000 bodily injury liability per person
    • $50,000 bodily injury liability per accident
    • $10,000 property damage liability per accident
    • $20,000 uninsured/underinsured motorist coverage per person
    • $50,000 uninsured/underinsured motorist coverage per accident
    • $5,000 uninsured/underinsured motorist property damage coverage per accident

    West Virginia

    • $25,000 bodily injury liability per person
    • $50,000 bodily injury liability per accident
    • $10,000 property damage liability per accident
    • $25,000 uninsured motorist coverage per person

    Wisconsin

    • $25,000 bodily injury liability per person
    • $50,000 bodily injury liability per accident
    • $10,000 property damage liability per accident
    • $25,000 uninsured motorist coverage per person
    • $50,000 uninsured motorist coverage per accident

    Wyoming

    • $25,000 bodily injury liability per person
    • $50,000 bodily injury liability per accident
    • $20,000 property damage liability per accident