6 Best Commercial Auto Insurance Companies

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Best for Most Vehicle Types

Progressive

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Best overall

AM Best Rating

A+

Availability

All 50 states

Best for Customizable Coverage

Nationwide

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Most affordable

AM Best Rating

A+

Availability

48 states (Not Alaska or Louisiana)

Best for Large Businesses

Sentry

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Best for large businesses

AM Best Rating

A+

Availability

All 50 states

Provides Protection for a Variety of Vehicles

State Farm

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Best customer service

AM Best Rating

A+

Availability

All 50 states

If you need coverage for your business fleet, our picks for the best commercial auto insurance companies give you several options. The companies on this list offer a mix of policies: liability, medical payments, comprehensive, collision and uninsured/underinsured motorist coverage.

As with private passenger insurance, you can lower your monthly commercial auto insurance premium by bundling policies with business insurance. You can also reduce your premiums with business experience, having a Commercial Driver's License (CDL) and insuring your personal vehicle with the same company.

We put together a comprehensive list of what each commercial car insurance company has to offer to help you decide which one is the best pick for you.

Our top picks for the best commercial auto insurance companies

• Progressive Commercial – Best for most vehicle types
• Nationwide – Best for customizable coverage
• The Hartford – Best for fleets
• Farmers – Best for single vehicles
• Auto-Owners – Best for discounts
• Sentry – Best for large businesses

Best commercial auto insurance companies reviews

Why we chose it: Progressive is the largest commercial auto insurer in the country, offering a wide range of services. Coverage types include liability, physical damage, medical payments, uninsured motorist, hired auto, any auto, and non-owned coverage. Progressive can also cover many vehicle types, including business automobiles, trucks and trailers.

Progressive’s commercial auto insurance policies are highly customizable. The company even lets you adapt your policy to seasonal changes, which is useful if you need to insure more or fewer vehicles during certain times of the year.

Progressive offers numerous discounts on its commercial auto insurance, such as discounts for CDLs, bundling and paying by EFT. You can also claim a discount if you also insure your personal vehicle with Progressive.

According to Progressive’s website, its average monthly premium for commercial auto insurance is $205 for business auto. For contractors, the average cost is $196 per month. Keep in mind, however, that prices with Progressive may vary depending on whether you buy insurance online or over the phone with an agent.

Progressive has a strong AM Best rating of A+ and its NAIC Complaint Index for commercial auto insurance is 0.67, below the national median. However, its latest J.D. Power rating for auto claims satisfaction is 861 out of 1,000, well below the industry average.

Why we chose it: Nationwide offers many coverage options, like liability coverage, comprehensive and collision, and uninsured and underinsured motorists. It also lets you expand your coverage through endorsements such as roadside assistance, new vehicle replacement, auto loan or lease coverage and rental reimbursement.

Vantage 360 is Nationwide’s telematics service for small businesses. It allows you to manage a fleet of vehicles and monitor drivers’ routes and activity. Individual drivers can also earn points for good diving behavior that they can later redeem for gift cards.

Nationwide claims that drivers who use telematics apps have 47% fewer claims. And business policyholders who opt into Vantage 360 may be eligible for a 10% discount on select coverages — provided they take a recorded trip within 45 days of enrollment. Coverage is available for various vehicles, including cars, trucks and vans.

With Nationwide, you can pair your commercial auto coverage with business owners' insurance, general liability, workers' compensation and umbrella insurance. While the company has an online quote tool, we found that it won’t always provide a quote unless you call its sales team. Similarly, you must call an agent if you want to buy a policy.

Nationwide includes a number of options to customize your coverage. These options, which Nationwide calls endorsements, include expanded towing and labor, rental reimbursement and auto loan or lease gap coverage.

Nationwide has an A+ rating from AM Best. And while it fell below the industry average in J.D. Power's latest Auto Claims Satisfaction Study, it ranked third among insurers in the firm's U.S. Small Commercial Insurance Study. Nationwide General Insurance Company has a 0.92 NAIC complaint index for its commercial auto line, just below the industry median.

Why we chose it: The Hartford's telematics program, FleetAhead, doesn't just help small business owners qualify for discounts, it's also a tool for developing drivers. The software creates a baseline for drivers based on their behavior on the road and can recommend coaching strategies to help them improve their performance. Drivers also get feedback while they drive, which helps reduce risks in real time.

The Hartford is one of the most well-known and trusted names in the insurance industry. The company has been around for more than 200 years and provides commercial auto insurance primarily for business fleets. It offers a wide range of services, including downtime loss, rental reimbursement and towing coverage. Its network of over 1,000 auto repair shops also makes it easier to take care of repairs no matter where you are.

Coverage options from The Hartford include liability, comprehensive and collision, uninsured/underinsured motorist, medical payments and non-owner insurance. The company also offers some unique services and discounts. For instance, it includes gap coverage for leased and loaned vehicles and coverage of electronic devices. Plus, you can get an additional 10% of the cost of total loss vehicles you replace with hybrid, electric or natural gas ones.

The Hartford has an A+ rating for A.M. Best but is ranked below the industry average in the latest J.D. Power Auto Claims Satisfaction Study. You must also call an agent to get a quote or purchase a policy.

Why we chose it: Farmers is the top choice for single-vehicle policies. With its specialized coverage for independent contractors and a wide range of coverage options, Farmers is ideal for independent contractors. Coverage includes using personal vehicles for business use if you don’t have a dedicated business vehicle.

Standard commercial auto insurance coverage options through Farmers include non-owned auto, uninsured/underinsured, liability and comprehensive.

Farmers also offers insurance options you may not find elsewhere, such as coverage for food trucks. This product lets you customize a policy to your needs, combining auto insurance with other coverage options for restaurant owners, including equipment breakdown, food contamination shutdown and spoilage insurance.

Farmers doesn't provide quotes online, and you must work with a local agent to buy a policy. Its A rating from A.M. Best is slightly lower than competitors’ ratings, and discounts from Farmers are somewhat limited. Still, its specialized coverage for single vehicles makes it worth considering for certain businesses.

Why we chose it: Auto-Owners is our top pick for those who don’t want to overpay on commercial auto insurance. Possible discounts through Auto-Owners include multi-policy, paid-in-full, fleet monitoring, group coverage and seasonal vehicle use. The company also has excellent financial strength ratings, and customer complaints are few and far between.

Auto-Owners offers all the standard policy options like comprehensive and collision, liability and medical payments. It also has coverage for newly acquired autos and road trouble service. If you happen to incur additional expenses when you have car trouble, such as car rental or hotel booking costs, it will help cover those too.

Auto-Owners is one of a few insurers to receive an A++ rating from AM Best. It also earned the top spot for independent agent satisfaction, according to a 2022 J.D. Power study. However, the company doesn't offer online quotes, and you’ll have to work with a local agent to buy a policy.

Why we chose it: Sentry offers customizable commercial policies that work well for fleets and large businesses. Sentry primarily serves businesses in construction, manufacturing, retail, trucking and car dealerships. Its business auto insurance offering includes options for dealerships, motor carriers and motor truck cargo.

Sentry's commercial vehicle insurance offering includes commercial auto liability, physical damage and non-trucking liability. The latter covers you if you occasionally use your work vehicle for personal use, which makes the company another great option for contractors.

Sentry offers several discounts to customers who participate in training programs. These include video coaching sessions and theft prevention and online safety courses.

While Sentry isn’t rated in the latest J.D. Power Auto Claims Satisfaction Study, it has an A+ rating from A.M. Best. However, the company doesn’t offer online quotes, so you must call the number on its website.

Other companies we considered

Travelers

Travelers has coverage for many vehicle types, including passenger vehicles, light trucks, heavy trucks and vehicle fleets. It offers liability, uninsured/underinsured motorists and physical damage coverage as well as industry-specific coverage for industries like oil & gas and the public sector.

Travelers' commercial insurance is well suited to small and large fleets. It offers coverage in most states but doesn't provide quotes online. You will have to work with an agent in your area to obtain a quote and purchase a policy.

Travelers has an A rating from AM Best but ranks well below the national average in J.D. Power's most recent U.S. Auto Insurance Claims Satisfaction Study.

State Farm

State Farm’s commercial plans can be customized to meet your needs. Policies cover vehicles you own and lease and medical fees for you and your employees.

State Farm doesn’t have an online quote tool, meaning you’ll have to work with a local agent to get a quote or purchase a policy. However, its website does have a chat and includes a tool to find an agent near you.

As for third-party ratings, State Farm received an above-average rating in J.D. Power's 2022 U.S. Auto Claims Satisfaction Study. Nevertheless, its NAIC complaint ratio for commercial auto insurance is quite a bit higher than the industry median (2.73).

Great West Casualty Company

Great West Casualty, a subsidiary of Old Republic, specializes in commercial truck insurance, and it’s worth considering for any business that operates in that sector. It provides many types of coverage, including liability, owner-operators, physical damage and umbrella insurance.

Great West Casualty has been in business for over 65 years. In addition to its underwriting services, the company offers seminars and publishes videos and newsletters aimed at helping customers improve safety and meet regulatory compliance.

You can request a quote online, you'll have to wait for an agent to reach out to you with a quote. Great West Casualty has an A+ rating with AM Best and very few NAIC complaints against its commercial auto insurance line.

Allstate

Allstate is among the top 10 largest commercial auto insurers in the industry and has one of the highest ratings in the 2022 J.D. Power Auto Claims Satisfaction Study. It offers liability, collision and comprehensive, and uninsured/underinsured motorists coverage and rental reimbursement.

With Allstate, you can get quotes online and submit claims 24/7. It has an A+ rating from AM Best, but it has an above-average number of NAIC complaints against its commercial auto policies.

AmTrust Financial

AmTrust is well suited to contractors, covering businesses like electrical, plumbing, roofing, HVAC, distribution, energy and appliance repair.

Coverage types include liability and physical damage coverage for light, medium and heavy vehicles. Everything from single units to large fleets can be covered, with liability limits from $300,000 to $1 million. Other benefits include downtime loss coverage — for when covered losses prevent you from operating — and diminishing deductibles.

AmTrust received an A rating from AM Best but has a higher complaint ratio against its commercial auto line than other competitors.

Federated Insurance

Federated Insured provides coverage to people like contractors, car dealerships, retailers and wholesalers. It also insures industries like cabinet and woodworking, funeral services and printers. It has an extensive portfolio of services, with everything from general liability to commercial auto and commercial umbrella.

Federated Mutual Insurance Company has an A+ rating from AM Best and no complaints against its commercial auto policies logged with the NAIC for 2021.

Acuity Insurance

Acuity Insurance provides commercial auto insurance to many types of industries, including construction, retail, trucking and wholesale. It offers liability, physical damage, uninsured/underinsured motorist and PIP coverage.

Acuity also offers several perks, such as $3,000 in coverage for electronic logging devices and special coverage for truckers.

Acuity allows customers to get quotes online and submit claims either online or over the phone. It has an A+ rating from AM Best and few NAIC complaints. However, Acuity is not licensed in all states, so check whether its services are available where you live.

Commercial Auto Insurance Companies Guide

While commercial auto insurance is similar to personal auto insurance, there are some noticeable differences. This guide covers what you need to know about commercial auto policies and how to find the best rates.

Main things to know before choosing a commercial auto insurance company

One of the most important things to know about commercial auto insurance companies is that they aren’t all the same. Some work with just a handful of types of clients or businesses, while others will take on almost any kind of client.

The same is true for coverages: coverage options and limits may vary by company. With this in mind, ask the insurer you are considering to go over what its policies cover before you sign up.

Commercial auto insurance must be tailored to your business, so not all companies will be the right fit. To get the best service and discounts, find insurers that regularly work with the kind of business you have and compare car insurance quotes from each one.

What is the average cost of commercial auto insurance companies?

The cost of commercial auto insurance can vary widely depending on factors such as your state and the type (or types) of vehicle you're looking to insure, your personal driving record and your industry.

As Nationwide notes, there isn’t an average cost of commercial auto insurance that applies to all businesses. Ask for quotes from a few commercial auto insurance companies and compare prices and discounts to get the best deal.

What does commercial auto insurance cover?

Commercial auto insurance covers many different things, depending on the business. However, here are the most common coverage options:

1. Liability insurance protects you and your company against bodily injury or property damage if you are found legally responsible after an accident.
2. Comprehensive coverage protects you if your vehicle is damaged by something other than another vehicle, such as vandalism, theft, fire, flooding, hail or accidents involving animals.
3. Collision coverage protects you when you hit another vehicle or object, are hit by another vehicle or your vehicle rolls over.
4. Uninsured/underinsured motorist pays for medical expenses, loss of income and other damages to you and your employees if you are in an accident caused by a motorist who is uninsured or underinsured.
5. Medical payments coverage helps you, your employees and your passengers cover medical expenses arising from motor vehicle accidents.
6. Personal injury protection (PIP) is another type of coverage that pays for medical expenses and, in some states, lost income.

Some commercial auto insurance companies tailor their coverage to specific types of businesses. For example, some might provide coverage for the equipment inside contractors’ vehicles. Others let you add additional coverages, like roadside assistance, towing and auto loan or lease coverage.

Why do you need commercial auto insurance?

Besides being legally required in most states, commercial auto insurance is necessary to protect your business against liability lawsuits and other losses. In general, if you use a vehicle to complete tasks related to your business (other than commuting), you need a commercial auto insurance policy.

You may also need commercial auto insurance if you transport goods or people in your vehicle or need higher liability limits due to the nature of your work. The same applies if employees operate vehicles or vehicles are registered under the name of a corporation or partnership.

If you rent or borrow vehicles while doing business, commercial auto insurance may reimburse you for damages after an accident. Commercial auto insurance can even help you cover the difference between the value of your company vehicle and the outstanding balance on your auto loan or lease.

How to avoid commercial auto insurance scams?

Scams and fraud are common in the insurance industry, and the commercial car insurance sector is no exception. When purchasing a commercial auto policy, business owners should have a clear idea of their insurance needs so as not to end up paying for unnecessary coverage. It's also a good idea to review your commercial auto policy and understand exactly what it covers and to what extent. This should help you avoid surprises come time to file a claim.

Besides getting roped into unnecessary coverage, you should also watch out for scammers looking to file fake injury claims or get your personal information to file fraudulent accident claims against your policy. To avoid these types of situations, drive safely, consider installing a dash cam on your vehicle and document accidents thoroughly by taking plenty of pictures.

How we found the best commercial auto insurance companies

We found the best commercial auto insurance companies by comparing the following:

• Available coverage options industry ratings customer complaints
• Available discounts
• Types of vehicles covered

Every business is different, and the best choice will ultimately come down to what works best for your company.

Still, some commercial insurance companies consistently come out on top regarding ratings from industry groups like J.D. Power, AM Best and NAIC. Our top picks for the best commercial auto insurance companies generally fare well in some or all those rankings, showing strong performance across the board.

Summary of the best commercial auto insurance companies of 2023

• Progressive Commercial – Best for most vehicle types
• Nationwide – Best for customizable coverage
• The Hartford – Best for fleets
• Farmers – Best for single vehicle
• Auto-Owners – Best for discounts
• Sentry – Best for large businesses