Neal Fusco
Quick Answer: Commercial auto insurance typically runs $220 to $1,200 a month, depending mostly on fleet size, vehicle type, and industry. A single service vehicle used for business falls toward the low end; a small fleet of service vans or box trucks falls toward the high end. These are estimates only; your real premium depends on your vehicles, drivers, coverage limits, and loss history, and is confirmed by a producer.
What is commercial auto insurance, and who needs it?
Commercial auto insurance covers vehicles owned, leased, or regularly used by a business, whether that is a single service van, a fleet of delivery trucks, or an employee's personal car used for sales calls. It responds to liability, collision, and theft claims the way personal auto insurance does, but it is written for business use and business-level limits.
Any business that owns a vehicle, has employees drive for work, or relies on a vehicle to generate revenue needs it. That includes contractors and trades, delivery and courier businesses, sales teams, landscapers, and home service providers. A personal auto policy is not built to carry this exposure, which is the gap covered below.
How much does commercial auto insurance cost?
Insurify's commercial auto research puts the typical monthly cost between $220 and $1,200, with fleet size, vehicle type, and industry the biggest drivers; a single light vehicle sits toward the low end of that range, and a fleet of several service vehicles or box trucks sits toward the high end. Insureon's data from more than 25,000 small contractor customers found commercial auto averaging $270 a month, or about $3,239 a year, for contractors running under 5 employees.
| Source and business profile | Typical monthly cost |
|---|---|
| Overall commercial auto range, all business types (Insurify, 2025) | $220 - $1,200 |
| Small contractor fleet average, under 5 employees (Insureon, 2026) | $270 average ($3,239/yr) |
Estimates only. Exact premium depends on vehicle type, fleet size, driver records, coverage limits, deductibles, business location, and loss history, and is confirmed by a producer during quoting.
Many businesses that carry commercial auto also carry a business owners policy and workers compensation once they have staff behind the wheel, since a vehicle accident involving an employee can trigger both auto liability and a workers comp claim.
Not sure what limits your business vehicles need? Let us review it.
Get My Commercial QuoteCall 833-776-4671What does a commercial auto policy cover?
A standard commercial auto policy covers liability for injuries and property damage you cause, collision and comprehensive damage to your own vehicles, and medical payments for you and your passengers. Most policies also offer hired and non-owned auto coverage, which protects the business when an employee drives a rented or personal vehicle on company business, and uninsured motorist coverage.
Claims that exceed your auto policy's limits are where a commercial umbrella policy adds another layer of protection, and businesses that store expensive equipment in their vehicles often add it to their commercial property coverage rather than leaving it exposed.
Is commercial auto insurance required by law in Illinois?
Illinois sets a financial responsibility floor for business vehicles under 625 ILCS 5/7-601 and 625 ILCS 5/7-203 of the Illinois Vehicle Code. For most business vehicles under 10,000 pounds operating only within Illinois, the legal minimum is the same 25/50/20 liability floor required of personal vehicles: $25,000 per person and $50,000 per accident for bodily injury, and $20,000 for property damage.
That legal floor is far below what most businesses actually need. Client contracts, landlord leases, and certificates of insurance commonly require $1 million in combined liability, and a single serious accident can easily exceed the state minimum. Heavier vehicles used in interstate trucking operate under separate federal FMCSA minimums, not the state floor described here.
Does my personal auto policy cover driving for work?
Usually not, beyond an occasional errand. Personal auto policies are written for personal use and typically exclude or sharply limit business use, including regular deliveries, transporting tools or equipment, or driving coworkers or clients. If an employee uses a personal vehicle regularly for work, the business needs hired and non-owned auto coverage, and the employee may need a business-use endorsement on their own policy.
How Pro Insurance Group helps
We are an independent brokerage, so we are not limited to one carrier's fleet program. We shop 20+ carriers to find the right combination of liability limits, physical damage coverage, and hired and non-owned auto protection for your vehicles, whether that is one service van or a growing fleet. There are no broker fees, and we issue certificates of insurance quickly when a client or landlord needs proof of coverage. See our full contractor and trades insurance page for how commercial auto fits into a complete program.
Frequently asked questions
How much does commercial auto insurance cost per month?
Most businesses pay between $220 and $1,200 a month, depending on fleet size, vehicle type, and industry. Small contractor fleets with under 5 employees average around $270 a month. These are estimates only, confirmed by a producer during quoting.
Is commercial auto insurance required by law in Illinois?
Yes, at a minimum. Business vehicles under 10,000 pounds operating only within Illinois must meet the same 25/50/20 liability floor as personal vehicles under the Illinois Vehicle Code. Most client contracts and certificates of insurance require much higher limits than this legal minimum.
Does my personal car insurance cover me if I drive for work?
Generally no. Personal auto policies exclude or sharply limit regular business use, such as deliveries or transporting equipment. A business that has employees drive for work needs commercial auto or hired and non-owned auto coverage.
What is hired and non-owned auto coverage?
It protects a business when an employee drives a rented vehicle or their own personal vehicle on company business. Without it, a claim involving a non-company-owned vehicle used for work can fall outside both the employee's personal policy and the business's standard commercial auto policy.
Do I need commercial auto insurance for a work truck used for trucking authority?
If you operate under an FMCSA motor carrier authority for interstate trucking, you need coverage that meets federal minimums, not just the state commercial auto floor. See our guide to FMCSA insurance requirements for a new authority for the specific limits and filings involved.
Reviewed by Neal Fusco, VP Commercial Lines
25+ years specializing in commercial and management liability risk across Illinois and 40+ states.