How To Insure Commercial Trucks for Personal Use

Most people know how much personal insurance they need for their day-to-day car. From the state-required minimum insurance to full coverage policies, it’s easy to understand personal insurance.

Commercial auto insurance can be a little trickier to figure out. The average commercial policy costs about $142 a month, but prices can vary significantly based on your needs.

Most commercial insurance policies 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.

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 a commercial car insurance policy 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 insurance 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 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.

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 –– you may be able to get car insurance by the mile
• 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 Auto Insurance Rates by State

State	Allstate	Geico	Nationwide	Progressive	State Farm	Average
AK	$1,667			$1,195	$807	$1,223
AL	$1,332	$1,099	$1,189	$1,388	$1,337	$1,370
AR	$2,007	$1,120	$1,581	$1,620	$989	$1,416
AZ	$2,226	$808	$1,436	$1,039	$999	$1,352
CA	$1,996			$1,553		$1,774
CO	$2,054	$1,161	$1,324	$1,490	$1,168	$1,475
CT	$2,421	$768	$1,382	$1,641	$1,126	$1,550
DC	$2,976	$855	$2,126	$1,420	$1,371	$1,750
DE	$2,555	$1,243	$1,777	$1,115	$1,431	$2,180
FL	$2,263	$1,103	$1,272	$1,889	$1,223	$1,624
GA	$2,035	$754	$1,878	$1,417	$1,324	$1,778
HI						$1,113
IA		$1,006	$900	$930	$804	$1,049
ID	$1,587	$708	$1,018		$653	$992
IL	$2,172	$587	$1,146	$1,103	$796	$1,153
IN	$1,729	$785	$1,198	$849	$872	$1,207
KS	$1,973	$923	$1,141	$1,575	$1,003	$1,447
KY		$988	$2,277	$1,377	$1,212	$1,610
LA	$2,547	$1,739		$1,990	$1,537	$1,953
MA						$1,342
MD	$2,481	$1,671	$1,313	$1,493	$1,322	$1,656
ME	$1,334	$454		$1,166	$724	$1,053
MI	$5,017	$1,219	$3,184	$1,880	$2,585	$3,193
MN	$1,977	$1,118	$1,070		$828	$1,732
MO	$1,831	$1,112	$816	$1,212	$1,051	$1,326
MS	$1,822	$886	$1,190	$1,487	$1,018	$1,282
MT	$1,903	$1,020	$1,093	$2,109	$870	$1,392
NC	$2,095	$851	$1,367	$393	$949	$1,129
ND	$1,679	$749	$949	$1,364	$943	$1,715
NE	$1,545	$1,139	$952	$1,175	$850	$1,358
NH	$1,585	$624	$953	$785	$729	$1,188
NJ	$1,948	$917		$1,154	$1,403	$1,915
NM	$1,958	$1,119	$1,186	$1,069	$855	$1,300
NV	$2,046	$1,361	$1,386	$1,018	$1,272	$1,470
NY	$1,820	$963	$2,026	$1,188	$1,695	$1,761
OH	$1,483	$728	$1,408	$1,051	$863	$1,065
OK	$1,668	$1,350		$1,362	$1,122	$1,577
OR	$1,896	$1,155	$1,372	$959	$926	$1,326
PA	$1,829	$843	$1,066	$1,834	$938	$1,449
RI	$2,333	$1,547	$2,351	$1,438	$939	$1,827
SC	$1,650	$979	$1,459	$1,294	$1,089	$1,422
SD	$1,682	$706	$943	$1,298	$827	$1,446
TN	$1,777	$970	$1,464	$1,141	$895	$1,200
TX	$2,488	$1,303	$1,908	$1,493	$1,109	$1,745
UT	$1,442	$906	$1,154	$1,174	$1,269	$1,266
VA	$1,277	$859	$1,061	$754	$785	$947
VT	$1,759	$469	$954	$2,233	$1,079	$1,289
WA	$1,415	$922	$866	$746	$858	$1,042
WI	$1,521	$766	$2,797	$1,158	$721	$1,265
WV	$2,000	$1,030	$1,288	$1,362	$979	$1,513
WY	$1,918	$1,369			$1,017	$1,366

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.

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