How To Insure Commercial Trucks for Personal Use

Want to know how to insure commercial trucks for personal use? Most of the best commercial car insurance companies will cover you when you drive a business vehicle for personal reasons, but there are restrictions to keep in mind. If you’re unsure of what your policy covers, your best option is to ask a representative.

Read on to learn more about commercial insurance and what the best option might be for your needs. Whether you need the cheapest commercial trucking insurance or affordable rideshare coverage, comparing quotes is the best way to find the lowest rates. Use our free quote comparison tool at any time to find cheap commercial car insurance. 

Which type of insurance do you need — personal or commercial?

The type of insurance you need depends on what you use your vehicle for. Most people buy insurance for a personal vehicle, meaning they use their car to get to work or run errands. 

However, you’ll probably need commercial car insurance if you use your vehicle for business purposes.

It also depends on the type of vehicle you want to insure. For example, dump trucks and tractor-trailers are often considered business-only vehicles and need a commercial policy. In fact, if you have a commercial license plate for any type of vehicle, you’ll need a business car insurance policy.

Not all vehicles are used exclusively for business. For example, many people use a pickup truck or car for business during the day and for personal use later. When you find yourself in this situation, you have a few options.

First, you can buy both a commercial and personal policy for your vehicle. This ensures that your car is covered no matter why you get behind the wheel. However, buying two policies for the same car can be incredibly expensive, especially since insuring a commercial vehicle costs more than a personal policy.

Another option is to buy a personal policy for your car, then add a commercial designation to your plan. Some companies offer this option as an add-on, while others allow for a distinction between working and personal hours. Unfortunately, this option isn’t available for every type of business vehicle.

Typically speaking, you need a business policy when you use your vehicle for work, even if you use it for personal reasons as well. Your claim might be denied if you don’t have a business policy and need to file a claim while you’re working.

Can you use a commercial car for personal reasons?

Commercial car insurance usually covers you when you use a business vehicle for personal needs. However, other drivers might not be covered when they borrow your car.

Although most commercial policies cover personal use, you should always check with an insurance representative to make sure. Some companies have strict rules about how a commercial policy can be used.

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Best Commercial Insurance Companies

Whether you need insurance for box trucks, the cheapest trucking insurance, or coverage when you drive for a rideshare app, there are plenty of companies to choose from. Some of the best commercial car and truck insurance companies include

• Acuity Mutual Insurance Company
• Nationwide
• Sentry
• Auto-Owners Insurance
• Travelers
• The Hartford
• AIG

These companies offer some of the highest-rated commercial auto insurance, but there are dozens of alternatives that might have better rates for you. 

For example, it doesn’t have the best ratings for smaller business vehicles, but Progressive commercial trucking insurance is one of the best options for large trucks.

Many business operators don’t need to insure commercial vehicles to stay covered. If you drive for a rideshare or food delivery company like Lyft, Uber, or DoorDash, you can usually add rideshare coverage to your personal policy. 

Some of the best options for rideshare car insurance include

• Geico
• Travelers
• Esurance
• Progressive
• State Farm
• Mercury

Whether you’re looking for Progressive trucking insurance or rideshare coverage from State Farm, it’s important to compare rates with multiple companies. If you sign up for a policy with the first company you look at, you’ll likely overpay.

What does commercial insurance cover?

Whether you buy a personal or commercial policy, you’ll have options for what coverage is included in your plan. The most commonly purchased personal insurance policies are

• Liability. Liability auto insurance coverage covers injuries you cause to other people and damage to their property. Most states require drivers to carry liability, but it doesn’t protect your vehicle.
• Collision. If you want protection for your car after an accident, you need collision insurance. Collision coverage also pays for repairs if you hit a stationary object, like a traffic sign.
• Comprehensive. There’s a lot more than accidents that can damage your car. Comprehensive car insurance covers damage from fire, animal contact, weather, theft, and vandalism.
• Uninsured/underinsured motorist. While most states require insurance, not all drivers follow the law. Uninsured motorist insurance protects you against drivers with inadequate coverage.
• Personal injury protection/medical payments. Medical bills can get expensive after an accident, but medical payments or personal injury protection insurance helps pay for them.

Read more: 4 Easy Steps to Get an Auto-Owners Insurance Quote

You can also buy a variety of add-ons to increase the coverage in your policy. When you purchase commercial insurance, it usually includes everything in a personal policy. It can also have the following coverages.

• General liability. Companies need protection against lawsuits and other legal troubles. General liability insurance helps pay legal fees after a car accident or related incident.
• Cargo. Your insurance only covers your vehicle and does not include anything you’re hauling. If you buy cargo insurance, any goods you carry in your vehicle or trailer will be covered.
• Workers’ compensation. If you own a company, workers’ compensation covers your employees’ wages if they’re injured in a workplace accident.

Like personal insurance, you can usually find add-ons that increase what your policy covers. You should always ensure that you only buy what you need, as add-ons can significantly increase the cost of your insurance.

How much does commercial car insurance cost?

Unlike personal car insurance, it can be difficult to estimate how much commercial coverage might cost you. Commercial auto insurance rates are affected by the following factors:

• The number of vehicles you own
• The type of vehicle you need to insure
• The driving record of anyone who will operate it
• How often your vehicle is driven 
• The type of business you operate
• How much coverage you need

The average commercial auto policy costs about $142 a month, but you can see significantly different prices based on your needs. To get an idea of how much commercial plans can vary, check the average monthly rates below.

• Taxi insurance — $625
• Tractor-trailer insurance — $875
• Truck insurance — $116
• Box truck insurance — $333

Keep in mind that these are only averages, and you might see much different prices. For example, insurance on a box truck or tractor-trailer is significantly cheaper for companies that own large fleets, while independent operators will pay more.

How much does it cost to have personal and commercial car insurance?

While you can buy a commercial and personal insurance plan for your car, it’ll cost much more than buying a single policy. Policies need to meet state requirements, especially for commercial plans.

The average commercial policy costs about $142 a month. Check below to compare the average commercial plan with personal insurance in your state.

Full Coverage Car Insurance Monthly Rates by State and Provider

State	Allstate	Geico	Nationwide	Progressive	State Farm	Travelers	U.S. Average
Alabama	$108	$89	$96	$112	$108	$79	$105
Alaska	$135	$76	$108	$97	$65	$93	$103
Arizona	$180	$65	$116	$84	$81	$104	$112
Arkansas	$162	$91	$128	$131	$80	$111	$116
California	$199	$101	$142	$132	$108	$122	$140
Colorado	$166	$94	$107	$120	$94	$114	$115
Connecticut	$196	$62	$112	$133	$91	$83	$123
Delaware	$207	$101	$144	$90	$116	$82	$156
Florida	$183	$89	$103	$153	$99	$166	$142
Georgia	$165	$61	$152	$115	$107	$110	$132
Hawaii	$118	$60	$84	$78	$64	$72	$83
Idaho	$128	$57	$82	$91	$53	$57	$77
Illinois	$176	$47	$93	$89	$64	$87	$92
Indiana	$140	$63	$97	$69	$71	$69	$92
Iowa	$126	$81	$73	$75	$65	$92	$86
Kansas	$160	$75	$92	$127	$81	$87	$111
Kentucky	$236	$80	$184	$111	$98	$139	$145
Louisiana	$206	$141	$181	$161	$124	$156	$173
Maine	$108	$37	$87	$94	$59	$61	$80
Maryland	$201	$135	$106	$121	$107	$103	$129
Massachusetts	$143	$72	$103	$95	$78	$88	$101
Michigan	$406	$99	$257	$152	$209	$183	$238
Minnesota	$160	$90	$87	$101	$67	$94	$124
Mississippi	$147	$72	$96	$120	$82	$88	$105
Missouri	$148	$90	$66	$98	$85	$114	$102
Montana	$154	$82	$88	$171	$70	$111	$107
Nebraska	$125	$92	$77	$95	$69	$102	$104
Nevada	$165	$110	$112	$82	$103	$91	$114
New Hampshire	$128	$50	$77	$63	$59	$69	$86
New Jersey	$157	$74	$119	$93	$113	$136	$138
New Mexico	$158	$90	$96	$86	$69	$91	$105
New York	$147	$78	$164	$96	$137	$175	$138
North Carolina	$169	$69	$111	$32	$77	$99	$86
North Dakota	$136	$61	$77	$110	$76	$88	$124
Ohio	$120	$59	$114	$85	$70	$63	$82
Oklahoma	$135	$109	$122	$110	$91	$105	$118
Oregon	$153	$93	$111	$78	$75	$97	$102
Pennsylvania	$148	$68	$86	$148	$76	$75	$112
Rhode Island	$189	$125	$190	$116	$76	$103	$143
South Carolina	$133	$79	$118	$105	$88	$105	$117
South Dakota	$136	$57	$76	$105	$67	$97	$109
Tennessee	$144	$78	$118	$92	$72	$88	$102
Texas	$201	$105	$154	$121	$90	$101	$133
Utah	$117	$73	$93	$95	$103	$88	$96
Vermont	$142	$38	$77	$181	$87	$75	$93
Virginia	$103	$69	$86	$61	$63	$73	$81
Washington	$114	$75	$70	$60	$69	$81	$80
Washington, D.C.	$241	$69	$172	$115	$111	$102	$129
West Virginia	$162	$83	$104	$110	$79	$102	$116
Wisconsin	$123	$62	$226	$94	$58	$72	$94
Wyoming	$155	$111	$114	$106	$82	$98	$104

As you can see, some states have much cheaper rates than others, primarily due to differences in traffic, insurance laws, crime rates, and weather risks. However, the average price of personal insurance in the U.S. is $50 monthly for minimum insurance and $150 for full coverage. Learn how to mitigate risks while driving to save money on insurance, such as learning how to drive safely in bad weather. 

If you decide to buy two separate policies, you should expect to pay at least $200 a month for insurance. Although you can buy both, it’s more economical to buy one policy that covers all your needs.

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How do you change commercial car insurance to a personal policy?

Changing a commercial policy to a personal plan is relatively simple. Of course, you need to no longer use your car for business purposes, as any personal claim you file will be denied if you still use your vehicle for work.

The easiest way to change your policy is to call an insurance representative and update them on your situation. A representative can help you cancel your old plan and start a new policy to meet your needs.

When switching from a commercial to a personal policy, you should consider comparing quotes. A company that offers low commercial insurance rates might not be the best option for a personal policy. Finding the cheapest car insurance can take a lot of time and research.

Find the Best Commercial and Personal Car Insurance Today

Most commercial insurance policies allow drivers to use their vehicles for personal use without buying more coverage. If you’re unsure of what your policy allows, it’s always a good idea to ask a representative.

You can often find policies that combine coverage for commercial and personal use for an affordable price. No matter what type of insurance you’re interested in, the most crucial step in finding affordable coverage is to compare rates with multiple companies.

Case Studies on Insuring Commercial Trucks for Personal Use

Case Study 1: John’s Construction Business

John owns a construction business and frequently uses his commercial truck for both work and personal use. To ensure proper coverage, John purchased a commercial car insurance policy that allows for personal use. This way, he is protected in case of an accident or damage, whether he’s on the job or running personal errands.

Case Study 2: Sarah’s Food Delivery Service

Sarah operates a food delivery service using her commercial vehicle. Since she also uses the vehicle for personal reasons, Sarah decided to obtain a commercial policy with a personal use endorsement. This way, she is covered whether she’s delivering food or using the vehicle for personal matters.

Read more: Food Truck Car Insurance: Compare Rates, Discounts, & Requirements [2023]

Case Study 3: Mike’s Landscaping Business

Mike runs a landscaping business and uses his commercial truck primarily for work. However, he occasionally uses it for personal purposes as well. To ensure adequate coverage, Mike opted for a commercial policy that covers both business and personal use, eliminating the need for separate policies and providing comprehensive protection.

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