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Best Commercial Auto Insurance of 2023

Progressive is our top pick due to its large market share and wide coverage

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Proper auto insurance coverage is imperative for businesses that own vehicles or even send employees out on errands in their own vehicles, as it helps to protect the company against liability and loss following an accident, theft, or other incidents. While personal auto insurance can protect certain business pursuits (such as real estate agents and rideshare drivers), this coverage can be limited and may not fully protect you and your business every time you or your employee get behind the wheel.

We compared more than a dozen different commercial auto insurance carriers to see which ones offered the best commercial auto insurance coverage with the greatest features and the most affordable price. Read on to see which companies we recommend and why.

Our Top Pick

Best Commercial Auto Insurance of 2023

For a free, no-obligation custom quote, contact our partner Gallagher Small Business to speak with a small business expert who understands your needs: 833-292-9441.

Best Commercial Auto Insurance of 2023
Best Commercial Auto Insurance of 2023

Best Overall : Progressive


Progressive

?Progressive

  • Key Benefit: Seasonal policy changes allowed
  • Types of Vehicles Covered: With few exceptions, any vehicle your business or employee owns, borrows, leases, or rents, except for those older than 1931. Exclusions include golf carts, exhibition vehicles, military vehicles, emergency vehicles.
  • Availability: All 50 states (Washington, D.C. excluded)
Why We Chose It

Our top overall pick for the best commercial auto insurance is Progressive. This wide-reaching carrier—already named the number-one commercial truck insurer in America—provides coverage for a large variety of vehicle types, offers online quotes, and allows for an unlimited travel radius in most states. It also offers seasonal policy changes to save on premiums during the off-season.

Pros & Cons
Pros
  • Largest market share in U.S.

  • Offers coverage for nearly every vehicle type

  • Many discounts available

  • Allows for seasonal policy changes

Cons
  • Does not insure businesses with over 20 vehicles

Overview

With a broad spectrum of coverage options across the entire country, it’s easy to see how Progressive made it to the top of our list. This carrier provides commercial auto insurance for nearly every business and vehicle arrangement, with a slew of discounts to choose from and the ability to change your coverage at any time without penalty.

Founded in 1937, Progressive is the number one commercial auto insurer in the United States with an overall market share of more than 15% in 2022. It offers commercial coverage in all 50 states (though Washington, D.C. is excluded), with policies that protect a wide range of vehicles such as cars, light trucks, vans, SUVs, food trucks, dump trucks, and even tractor-trailers, to name a few. It also offers an unlimited travel radius in most states, without increasing premiums.

Commercial auto protection can include a mix of liability (bodily injury and property damage), medical payments, underinsured/uninsured motorist coverage, collision, comprehensive, and even fire/theft. Progressive also has specialty coverage that not every carrier offers, such as hired auto, non-owned, and any-auto. This means that everyone can be covered whether your business owns the vehicles or your employees use their own vehicles to conduct business.

Progressive allows for coverage adjustments at any time, which can be helpful for seasonal businesses that might not need full protection all year long. It also makes it easy to get discounts for safe driving, paying by electronic funds transfer, business experience, bundling policies, and paying in full.?

According to Progressive’s website, commercial auto insurance has a median monthly cost of $172 per month for contractors and $175 for business auto customers. Online quotes are offered for certain businesses, but some may need to contact an agent. Progressive offers policy service seven days a week over the phone or online, and filing a claim is easy to do over the phone, day or night.

To learn more about this carrier, you can read our full Progressive Auto Insurance Review.

Best Value : Nationwide


Nationwide

Nationwide

  • Key Benefit: Extra coverage features at no additional cost
  • Types of Vehicles Covered: Any vehicle your business or employee owns, borrows, leases, or rents, except for semi-trucks and tractor-trailers
  • Availability: 49 states
Why We Chose It

With features such as new car replacement, loss of use protection, and auto loan or lease coverage, commercial auto insurance through Nationwide is our choice for best value.

Pros & Cons
Pros
  • Highly-ranked in customer satisfaction

  • Wide range of coverage and deductible options

  • Submit claims online

Cons
  • Need to work with agent

  • No coverage for semis or tractor-trailers

  • Not available in all states

Overview

Nationwide commercial auto insurance earns our nod for the best value in coverage, with a wide range of affordable policy options, valuable features, and deductibles as low as $0. This company currently serves 49 states, and it has been providing insurance coverage since 1926.

Commercial auto insurance through Nationwide is available on a variety of business vehicles including cars, cargo vans, work vans, box trucks, pickup trucks, and utility trucks; however, semi-trucks and tractor-trailers are not covered. Quotes are available online or over the phone, but you’ll need to work with an agent in order to actually buy a policy, based on our research.

With Nationwide, businesses can purchase coverage ranging from $300,000 to $1 million in combined single-limit liability, with deductibles from zero to $1,000. Cargo insurance and non-owner coverage are provided, too. Through the online quote portal, we found that a business owner could purchase $300,000 in liability coverage and $500,000 in uninsured motorist coverage for one vehicle (a 2018 Chevrolet Silverado), with a $500 deductible, for only $2,102 a year.?

Optional features include new car replacement, roadside assistance, rental reimbursement, and even gap coverage for loans and leases alike. If you want to further protect your drivers and passengers, you can add medical payments and personal injury protection (PIP) coverage. Discounts through Nationwide include special pricing for bundling multiple policies, paying premiums in full, installing anti-theft devices, and having hybrid vehicles. You can also receive a 10% discount by enrolling in Vantage 360 Fleet, a free telematics rewards program for fleet vehicles that encourages safer driving. Claims can be submitted online or over the phone.

Nationwide holds an A+ financial strength rating from AM Best. It also ranks first in customer satisfaction, according to the 2023 J.D. Power U.S. Small Commercial Insurance Study.?

To read more about this carrier, check out our full Nationwide Auto Insurance Review.

Best for Single Vehicles : Farmers


Farmers

Farmers

  • Key Benefit: Highly personalized policies for specific industries
  • Types of Vehicles Covered: Contact agent for covered and excluded vehicle types
  • Availability: 49 states (Florida and Washington, D.C. excluded)
Why We Chose It

If you’re looking for highly customizable commercial policies (especially when you only have one or two vehicles), Farmers is our recommendation. This carrier offers specialized coverage options across most of the U.S. while covering a range of different industries.

Pros & Cons
Pros
  • Highly specialized coverage options

  • Many industries covered

  • Top-rated mobile app

Cons
  • No online quotes

  • Need to work with agent

  • Limited discounts

Overview

If you’re looking for commercial auto insurance for a single company vehicle, Farmers is worth consideration. This carrier provides policies to a large number of industries, with coverage that even extends to employees’ own vehicles (when driving for business purposes). It provides commercial auto protection in the form of liability, underinsured/uninsured motorist, comprehensive, and many other coverages.

Farmers offers coverage for specialized industries and losses, too. For instance, it can cover tools that are stolen from a contractor’s vehicle, as well as coverage for food spoilage or food-borne illness when insuring a food truck. This type of protection is often offered through separate BOP policies with some other carriers.

Online quotes aren’t offered through Farmers, and you’ll need to work with a local agent in order to price out and buy a policy. Discounts are somewhat limited but include discounts for bundling, vehicle safety technology, and corporations. Claims can be submitted over the phone or online. The highly rated Farmers mobile app also gives policy owners access to their coverage anytime, from anywhere.

Farmers' customer satisfaction ranked below average in the J.D. Power 2022 U.S. Small Commercial Insurance Study, but that ranking jumped to fourth place in the 2023 report. The carrier holds an A financial strength rating from AM Best.

To learn more about this carrier, you can read our full Farmers Auto Insurance Review.

Best for Fleets : The Hartford


The Hartford

?The Hartford

  • Key Benefit: Unique programs, technology, and discounts designed just for fleets
  • Types of Vehicles Covered: Cars, vans, pickup trucks, box trucks, service utility trucks, possibly others (contact agent)
  • Availability: All 50 states and Washington, D.C.
Why We Chose It

With a special commercial insurance program for fleet owners—which includes safety devices and unique fleet discounts—The Hartford is our top choice for businesses with fleets or several vehicles.

Pros & Cons
Pros
  • Coverages offered to help handle vehicle downtime

  • Specialized services and features for fleets

Cons
  • No online quotes

Overview

Our top choice for commercial fleet auto insurance coverage is The Hartford, a company that has been around since 1810. This carrier provides resources to businesses with fleet vehicles to not only offer solid coverage but also help employees avoid accidents and reduce risk.?

The Hartford offers a number of coverages that can help you handle vehicle downtime such as towing, rental reimbursement, and downtime loss coverages. Hired and non-owned auto coverage is also offered, and could be useful to many businesses. The company also makes it easy to snag additional savings on your commercial fleet policy by offering discounts for multiple vehicles, paying in full, or being a safe driver.?

Coverage options include liability, comprehensive, collision, uninsured/underinsured motorist, medical payments, and non-owner. It also has a FleetAhead program for business fleets, which uses wireless devices on vehicles to promote safety, manage incidents, and qualify for additional savings. No online quotes are offered, so you’ll need to call for information and pricing in your specific area.

Commercial auto insurance coverage through The Hartford also offers the option of “drive other car” protection, for when employees and owners conduct business in personal, borrowed, rented, or leased vehicles.

Claims can be made 24 hours a day, seven days a week, either online or over the phone.

The Hartford currently holds an A+ financial strength rating from AM Best. Unfortunately, the company ranked last with customer satisfaction ratings below the industry average in both the 2022 and 2023 J.D. Power U.S. Small Commercial Insurance Study.

To learn more about this carrier, you can read our full The Hartford Auto Insurance Review.

Best Customer Service : State Farm


State Farm

?State Farm

  • Key Benefit: Top customer satisfaction and financial strength ratings
  • Types of Vehicles Covered: Contact agent for covered and excluded vehicles
  • Availability: All 50 states and Washington, D.C.
Why We Chose It

With top customer satisfaction ratings, State Farm is our pick for the best customer service in commercial auto insurance.

Pros & Cons
Pros
  • Top customer satisfaction ratings

  • Top financial strength ratings

Cons
  • Online quotes not offered

  • Need to work with agent

  • Limited policy options

Overview

Earning our top nod for commercial insurance customer service is State Farm. This carrier earned first place in the J.D. Power 2022 U.S. Small Commercial Insurance Study and second place in 2023.

Commercial insurance options include liability (bodily injury and personal property), medical payments, underinsured motorist, uninsured motorist, comprehensive, and collision coverage. The company does offer additional coverage features such as Employer Non-Owned car Liability (ENOL), which extends policy coverage to employees’ own vehicles when driven for business purposes. This carrier also offers rideshare coverage options on personal auto insurance policies, saving many drivers from paying the higher premiums of a commercial policy.

Online quotes are not offered through State Farm, so you’ll need to work with an agent to get a quote and purchase coverage. Claims can be filed online, over the phone, or through the award-winning mobile app.

State Farm was founded in 1922 and offers policies in all 50 states and Washington, D.C. Not all policies, coverage options, or discounts are available in all states, so you’ll want to speak with your local agent to see what is offered for your business. The carrier currently holds an A++ (highest possible) financial strength rating from AM Best.

To learn more about this carrier, you can read our full State Farm Auto Insurance Review.

Final Verdict

Choosing the best commercial auto insurance policy for your business depends on many personal factors, such as the number of vehicles your company owns, how much coverage you need, the nature of your business, and whether employees will use their own vehicles to run business errands. While Farmers auto insurance will be a better match for you if you’re simply looking to insure a single vehicle, and The Hartford is best equipped for protecting an entire fleet, we believe Progressive is the all-around top carrier.

As the number one commercial auto insurer in America, securing the top spot several years in a row and currently insuring over 1.9 million commercial vehicles, Progressive is our top overall pick for the best commercial auto insurance. Not only does it offer a broad spectrum of coverage options and discounts for nearly every type of business and vehicle, but it also gives you the flexibility to adjust coverage at any point, meaning that most business owners will be able to tailor their Progressive commercial auto policy to meet their specific needs.

Compare the Best Commercial Auto Insurance Companies

Auto Insurance Company Key Benefit Types of Vehicles Covered Availability
Progressive Best Overall Seasonal policy changes allowed Any vehicle your business or employee owns, borrows, leases, or rents, except for those older than 1931. Exclusions include golf carts, exhibition vehicles, military vehicles, emergency vehicles. All 50 states (Washington, D.C. excluded)
Nationwide Best Value Extra coverage features at no additional cost Any vehicle your business or employee owns, borrows, leases, or rents, except for semi-trucks and tractor-trailers 48 states and Washington, D.C.
Farmers Best for Single Vehicles Highly personalized policies for specific industries Contact agent for covered and excluded vehicles 49 states (Florida and Washington, D.C. excluded)
The Hartford Best for Fleets Unique programs, technology, and discounts designed just for fleets Cars, vans, pickup trucks, box trucks, service utility trucks, possibly others (contact agent) All 50 states and Washington, D.C.
State Farm Best Customer Service Top customer satisfaction and financial strength ratings Contact agent for covered and excluded vehicles All 50 states and Washington, D.C.

Frequently Asked Questions

  • Is It Cheaper to Get Commercial or Personal Insurance?

    Commercial auto insurance typically costs more than personal auto insurance because commercial policies tend to have higher limits to account for a higher risk—rather than simply insuring a driver or two and their car(s) for commuting or running errands, a commercial policy ensures your entire business, complete with multiple drivers and different types of vehicles, is protected.

    The cost of commercial auto insurance will depend on the number of vehicles insured, the coverage limits and deductibles chosen, your business’s location, and even the travel radius of your drivers.

  • What State Has the Highest Vehicle Insurance Rates?

    Your vehicle insurance rate can depend on factors such as the make and model of your vehicle, your driving record, your age and gender, and your location. States with the most expensive business use vehicle insurance include Michigan, Florida, New Jersey, Connecticut, and Louisiana.

  • What Is the Most Expensive Car to Insure in the U.S.?

    Coming in at $5,118 to $5,176 per year, the Maserati Quattroporte is the most expensive car to insure in the U.S.

  • How Can I Lower My Commercial Insurance Rate?

    You can lower your commercial auto insurance rate by increasing your deductible, reducing your coverage, employing drivers with clean driving records, and taking advantage of any discounts offered by your commercial auto insurance provider.

Methodology

In order to help you decide on the best commercial auto insurance companies, we evaluated more than a dozen different carriers. We compared factors such as availability, customer satisfaction ratings, pricing, financial strength ratings, and coverage options. We also considered the ease with which business owners can purchase a policy, make changes to their coverage, and file a claim if needed.

Two people sit in a car.
Article Sources
Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.
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