Managing Money In A Crisis
Weekly tips sent straight to your inbox
Industries
Guides
Popular Models
Finder is committed to editorial independence. While we receive compensation when you click links to partners, they do not influence our opinions or reviews. Learn how we make money.
Compare commercial car insurance for transportation businesses
Get coverage designed to protect your passengers, your cargo and your business.
Updated
To narrow down the strongest protection for your vehicles or fleet, weigh premiums, deductibles and coverage across providers. And make sure your industry requires a commercial policy.
Compare car insurance for your transportation business
What kind of transportation businesses need commercial car insurance?
Businesses that rely on transporting goods or people can benefit from a commercial policy that’s tailored to cover trucks, limo services and select industries.
- Medical transportation
- Bus tours
- For-hire vehicles
- Taxis and limousines
- Airport shuttles
- Church buses
- Charter buses
- Daycare centers
- Nonprofits
- Group-home transportation
- Wilderness expeditions
- Escort vehicles
Compare your state’s minimum coverage
What kind of car insurance do I need for a transportation business?
Coverage requirements vary by the type of transportation business you run. However, most states require liability insurance at a minimum.
Other types of coverage include:
- Liability insurance. Provides coverage for bodily injury and property damage in an at-fault accident.
- Collision. Covers the cost to repair or replace a vehicle after an accident.
- Comprehensive. Covers damage from weather, theft and vandalism.
- Medical payments. Pays for the medical costs of drivers and passengers injured in a company vehicle.
- Uninsured or underinsured motorist. Provides coverage if another driver doesn’t have enough insurance to pay for your damages.
What additional coverage should I consider?
Beyond the standard commercial car insurance policies, you can increase the protection of your policy with add-ons like:
- Gap insurance. Covers the remaining balance of a loan if you total your vehicle.
- Roadside assistance. Pays for the cost of towing and labor if a company vehicle breaks down.
- Rental car coverage. Covers the cost of a rental while your insured vehicle is repaired or replaced.
- Non-owned automobile liability coverage. Extends coverage to employees driving their own vehicles for your business.
- Personal items coverage. Protects the personal items of drivers and passengers if lost or stolen from a work vehicle.
- No-deductible glass repair. Takes care of windshield damage and other glass repairs with no cost out of pocket.
- Loading and unloading liability. Provides liability coverage for injuries caused by loading or unloading a business vehicle.
- Keys and locks. Replaces locks if your keys are stolen or lost.
- Journey disruption. Pays the costs of arranging a new vehicle and overnight accommodation after an accident.
- Branding. Repairs or replaces branding, decals and artwork on company vehicles.
- Downtime. Provides compensation for vehicle downtime when yours can’t be used for business.
How much is car insurance for transportation businesses?
The price of commercial car insurance varies by industry, driving history and location, among other factors. But expect to pay from $1,000 to $7,500 annually for most commercial transport vehicles.
| Vehicle type | Average annual insurance rate per vehicle |
|---|---|
| Semi truck | $1,575 |
| Limousine | $5,000 |
| Taxi cab | $7,500 |
| Bus | $35,000 |
We’ve based our estimates on insuring one vehicle. If you have multiple vehicles or a fleet to insure, your total cost will vary.
Compare commercial car insurance
How do I compare commercial insurance?
Consider your needs determine the right commercial insurance policy for your business:
- Public or private. Public-sector vehicles like police and government cars are often covered by a separate insurance policy, but commercial car insurance can provide extra coverage. For private companies, commercial car insurance can provide basic liability, comprehensive coverage and stronger protection.
- Number of vehicles. Consider how many vehicles are in your fleet. If you only have a few, one major accident could significantly affect your operation. If you have a larger fleet, consider how you’ll handle business while your vehicles are in the shop.
- Owner of vehicles. Does your business provide vehicles, or do you hire drivers that use their own? Consider commercial car insurance or hired car insurance to cover your fleet and drivers while they’re on the clock.
- Risk. Does your business put your vehicles at a higher risk of a collision? Do you transport people or expensive cargo? Collision coverage and other types of commercial car insurance can provide additional protection.
How do I get car insurance for a transportation business?
The process of purchasing coverage varies by provider, though you’ll follow a general set of steps:
- Visit the provider’s website.
- Select Get a quote or call the number provided.
- Submit necessary information about your business, vehicles and drivers.
- Adjust coverage limits and other options to fit your needs.
- Get your quote and confirm the details.
- Enter your payment information.
- Purchase your policy.
What to watch out for with car insurance for transportation businesses
Commercial car insurance is an effective way to protect your business, drivers and passengers. But like any other insurance policy, you’ll want to look out for:
- Coverage exclusions. Don’t be surprised by exclusions that include driving activities, transport areas and prohibited vehicles.
- Coverage for non-employees and hired vehicles. Commercial car insurance generally covers company-owned vehicles only. Get for-hire insurance to cover driver-owned vehicles.
- Equipment. Most policies won’t cover equipment inside or on your vehicles without an add-on.
- Cargo. You may need to purchase additional coverage if cargo isn’t included in your policy.
- Coverage limits. Limits vary by state and provider, so make sure your policy meets your state and industry minimums.
- Rideshare. Coverage for rideshare vehicles is different than policies for fleets and other hired vehicles.
- License status. Ensure that your drivers have the right licenses, and that they’re up to date.
- Exceeding weight or capacity. Most policies list weight or passenger limits. Exceeding these limits could result in denied claims.
- Negligence or misuse. Your claim may be denied if a vehicle is not legal, if a driver commits a crime or if your car suffers intentional damages.
- Wear and tear. Your policy likely won’t cover wear and tear, damage due to rust or road punctures and depreciation.
- Cargo limitations. Most policies exclude coverage when transporting dangerous goods or prohibited items.
Bottom line
Commercial car insurance is designed to safeguard your transport business. Know how much protection you need, and purchase enough coverage to fit your industry.
Compare commercial car insurance policies to find the strongest policy that’s tailored to the needs of your business.
Compare commercial car insurance
Frequently asked questions
Image from: Shutterstock
Ask an Expert