Commercial Auto Insurance for New York Businesses
Personal Auto Won't Cover Business Use
Using your personal auto policy for business purposes is a risky gamble. If an accident occurs while driving for work, your insurer can deny the claim—leaving you personally liable for potentially six-figure damages. Proper commercial auto coverage ensures your business vehicles are protected at all times.
Protect Your Business Vehicles Today
Coverage for single vehicles to large fleets at competitive rates.
Your business vehicles are essential assets—whether it's a single company car, a delivery van, or a fleet of service trucks. But every time these vehicles hit the road, your business faces significant liability exposure. A serious accident can result in medical bills, property damage, legal fees, and vehicle repairs that can easily exceed $100,000.
Commercial auto insurance provides comprehensive protection for vehicles used in business operations. Unlike personal auto policies, it's designed for the unique risks businesses face—from employee drivers to cargo transport to higher liability limits. The Stan Steele Agency helps New York businesses find the right commercial auto coverage at competitive rates.
What Is Commercial Auto Insurance?
Commercial auto insurance provides liability and physical damage coverage for vehicles used in business operations. It protects your business when company-owned, leased, or employee vehicles are involved in accidents while performing business activities.
Key differences from personal auto insurance include:
- •Multiple drivers: Coverage for all authorized employees, not just named individuals
- •Higher liability limits: Business exposures typically require $1M+ in coverage
- •Fleet management: Multiple vehicles under one policy with simplified administration
- •Specialized coverages: Cargo, hired/non-owned auto, and other business-specific options
- •Business-titled vehicles: Coverage for vehicles owned by your company, LLC, or corporation
Vehicles That Need Commercial Auto
- Company cars & SUVs
- Work trucks & vans
- Delivery vehicles
- Box trucks & cargo vans
- Service & utility vehicles
- Semi-trucks & trailers
Rule of thumb: If a vehicle is titled to your business or used primarily for business, it needs commercial coverage.
Who Needs Commercial Auto Insurance?
Any business that uses vehicles needs some form of commercial auto coverage. Here's how different businesses use commercial auto:
Contractors & Trades
- • Work trucks with tools/equipment
- • Service vans
- • Towing trailers
- • Heavy equipment transport
Delivery & Logistics
- • Delivery vans and trucks
- • Courier vehicles
- • Box trucks
- • Last-mile delivery fleets
Service Businesses
- • HVAC service trucks
- • Landscaping vehicles
- • Cleaning service vans
- • IT/tech service vehicles
Sales & Professional
- • Company cars for salespeople
- • Executive vehicles
- • Real estate agent cars
- • Consultant travel vehicles
Retail & Restaurants
- • Food delivery vehicles
- • Catering trucks
- • Supply pickup trucks
- • Store-to-store transfers
Healthcare & Social
- • Home health visit vehicles
- • Medical transport
- • Social worker cars
- • Non-emergency medical transport
No Owned Vehicles? Even if your business doesn't own vehicles, you may need Hired and Non-Owned Auto coverage. This protects your business when employees rent vehicles or use their personal cars for business purposes.
Commercial Auto Coverage Types
Liability Coverage
- Bodily injury liability
Pays for injuries your vehicle causes to others
- Property damage liability
Pays for damage your vehicle causes to others' property
- Uninsured/underinsured motorist
Covers you when at-fault driver lacks adequate insurance
- Medical payments
Covers medical expenses for vehicle occupants regardless of fault
Physical Damage Coverage
- Collision coverage
Pays to repair your vehicle after an accident, regardless of fault
- Comprehensive coverage
Covers theft, vandalism, weather, fire, and other non-collision damage
- Specified perils
More limited coverage for named perils at lower cost
- Towing and labor
Covers roadside assistance and towing costs
Additional Coverage Options
Hired & Non-Owned Auto
Essential coverage for businesses without owned vehicles. Protects when employees rent vehicles or use personal cars for business. Often required by contracts and leases.
Motor Truck Cargo
Covers goods and merchandise being transported. Essential for delivery businesses, truckers, and anyone hauling customer cargo.
Rental Reimbursement
Pays for a replacement rental vehicle while your business vehicle is being repaired after a covered claim.
Personal Injury Protection (PIP)
Required in New York. Covers medical expenses, lost wages, and other expenses for vehicle occupants regardless of fault.
How Much Does Commercial Auto Insurance Cost?
Commercial auto insurance costs vary widely based on your vehicles, drivers, and usage. Here's what to expect:
Typical Cost Ranges:
Factors Affecting Your Premium
- •Vehicle type & value: Heavier, more expensive vehicles cost more to insure
- •Usage & mileage: More miles driven means more exposure
- •Driver records: Clean MVRs result in lower rates
- •Operating radius: Local vs. regional vs. long-haul
- •Coverage limits: Higher limits cost more
- •Claims history: Past accidents increase premiums
- •Industry/cargo: What you haul affects risk
- •Fleet size: Larger fleets may qualify for discounts
Ways to Save on Commercial Auto:
- ✓ Maintain clean driver records—check MVRs before hiring
- ✓ Implement driver safety training programs
- ✓ Use vehicle tracking/telematics for fleet management
- ✓ Choose higher deductibles for physical damage
- ✓ Bundle with other commercial policies
- ✓ Review coverage annually—adjust for vehicle age/value
Get a Commercial Auto Quote in Minutes
We work with multiple carriers to find competitive coverage for your business vehicles. Free quotes, no obligation.
New York Commercial Auto Requirements
Minimum Required Coverage in NY
Liability Coverage:
- • $25,000 bodily injury per person
- • $50,000 bodily injury per accident
- • $10,000 property damage per accident
No-Fault (PIP) Coverage:
- • $50,000 minimum PIP coverage required
- • Covers medical expenses, lost earnings
- • Must be carried on all registered vehicles
Important: These are state minimums. Most businesses need significantly higher limits—especially liability coverage. A single serious accident can easily exceed $100,000 in damages. We recommend at least $1,000,000 in combined single limit liability for most business vehicles.
For-Hire Vehicle Requirements
Livery vehicles, taxis, and rideshare drivers have additional insurance requirements set by NYC TLC or other local authorities. These typically include higher liability limits and specific coverage endorsements.
Trucking (Motor Carrier) Requirements
Commercial trucks operating interstate must meet federal FMCSA requirements, including minimum liability limits of $750,000 to $5,000,000 depending on cargo type and vehicle weight.
Common Commercial Auto Claims
Rear-End Collision at Stop Light
A delivery driver rear-ends another vehicle while checking directions. The other driver claims neck and back injuries requiring treatment. Liability coverage pays for the other driver's medical expenses ($35,000), vehicle repairs ($8,500), and lost wages—plus your defense costs.
Company Truck Stolen from Job Site
A contractor's work truck with $15,000 worth of tools is stolen overnight. Comprehensive coverage pays to replace the vehicle (less deductible), and inland marine coverage pays for the stolen tools and equipment.
Employee Uses Personal Car for Delivery
An employee using their personal vehicle for deliveries is involved in an accident. Their personal insurance denies the claim because it was business use. Non-owned auto coverage protects your business when employees use their own vehicles.
Weather Damage to Fleet
A hailstorm damages five service vans parked in an open lot. Comprehensive coverage pays for repairs to all vehicles—dent repair, paint, and windshield replacements totaling $22,000.
Frequently Asked Questions
What is commercial auto insurance?
Commercial auto insurance covers vehicles used for business purposes. It provides liability coverage for bodily injury and property damage, plus physical damage coverage for your vehicles. Unlike personal auto policies, it can cover multiple drivers and vehicles under one policy.
Do I need commercial auto insurance for my business vehicle?
Yes, if a vehicle is titled to your business, used primarily for business purposes, or transports goods or passengers for a fee, you need commercial auto insurance. Personal auto policies typically exclude business use and will deny claims for commercial activities.
How much does commercial auto insurance cost?
Commercial auto insurance typically costs $1,200 to $2,400 per vehicle per year for basic coverage, though costs vary based on vehicle type, usage, driver history, and coverage limits. Heavy trucks and high-risk operations may cost significantly more.
What is hired and non-owned auto coverage?
Hired auto coverage protects your business when employees rent or borrow vehicles for business use. Non-owned auto coverage protects when employees use their personal vehicles for business purposes. Both are essential for businesses without company-owned vehicles.
What vehicles does commercial auto insurance cover?
Commercial auto covers cars, SUVs, vans, pickup trucks, box trucks, semi-trucks, buses, and specialty vehicles used for business. Coverage can include owned vehicles, leased vehicles, hired vehicles, and employee-owned vehicles used for business.
Is commercial auto insurance required in New York?
Yes, New York requires all registered vehicles to have liability insurance. Commercial vehicles must meet minimum liability requirements, and for-hire vehicles (taxis, livery) have additional requirements. Many businesses need higher limits than the state minimums.
Related Business Coverage
Commercial auto is one component of comprehensive business protection. Consider these complementary coverages:
General Liability
Covers non-auto liability—essential for complete business protection.
Commercial Umbrella
Additional liability limits above your auto and general liability policies.
Inland Marine
Covers tools, equipment, and cargo transported in your vehicles.
Workers' Compensation
Covers employee injuries—required for NY businesses with employees.
Important Information
This information is provided for educational purposes only and does not constitute legal or insurance advice. Coverage features, exclusions, and availability vary by state, carrier, and individual circumstances.
All coverage is subject to policy terms, conditions, and exclusions. Please review your policy carefully and consult with a licensed insurance professional to determine appropriate coverage for your specific situation.
The Stan Steele Agency is licensed to conduct business in New York State. License information available upon request.
Protect Your Business Vehicles Today
Don't let an accident cripple your business. Get comprehensive commercial auto coverage tailored to your fleet with expert guidance from Stan Steele Agency.
Why Work With Us:
- ✓ Free, no-obligation quotes
- ✓ Multiple carriers for competitive rates
- ✓ Fleet management expertise
- ✓ Same-day certificates of insurance
- ✓ Driver risk management support
Serving NY businesses since 1969 • Fleet specialists
