Glossary

Commercial auto insurance

Insurance for vehicles used mainly for business, covering liability and physical damage risks that a personal auto policy excludes.

Also called: business auto insurance, commercial vehicle insurance, business auto policy

Commercial auto insurance covers cars, trucks and vans owned or used by a business, along with work driving that a personal auto policy will not cover. It has the same basic parts as personal insurance, such as liability, collision, comprehensive, uninsured motorist and medical coverage, but it is written for business exposures: employee drivers, high mileage, heavier vehicles, cargo and contracts that demand proof of high limits.

You typically need it if the vehicle is titled to a business; if it is a heavy truck or specialized vehicle; if you carry goods, tools or people for pay beyond what a personal policy or endorsement allows; or if employees drive for the business. Commercial policies often use a combined single limit and frequently carry higher limits, which federal or state rules require for some trucks and for-hire carriers.

Many drivers fall in between. Occasional work driving can often be handled by rating a personal policy for business use, and rideshare or delivery drivers may be able to add a rideshare endorsement instead of buying a commercial policy. Ask your insurer which applies before the first paid trip, since a personal policy can deny a claim that arises from excluded commercial activity.

Last reviewed October 4, 2026

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Related terms

Business use A personal policy rating for a car driven as part of your job, such as visiting clients or job sites, which costs more than commute or pleasure use. Personal auto policy The standard contract form behind most U.S. car insurance, with parts for liability, medical payments, uninsured motorists and damage to your car. Rideshare endorsement An add-on to a personal auto policy that covers a rideshare driver during gaps in the platform's insurance, especially while waiting for a request. Combined single limit One liability limit covering all bodily injury and property damage from a crash, instead of separate per-person, per-accident and property caps. Liability limits The most a liability policy will pay for injuries and property damage you cause, usually written as three numbers such as 100/300/100.

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