When Do You Need Commercial Auto Insurance?
18 August 2025

See How We're Different

Get A Quote

or call us:  (858) 384‑1506

If you regularly use your truck in the conduct of your business or have purchased vehicles specifically for your business, then personal auto insurance is not the correct coverage. You’ll need to purchase commercial auto insurance (also known as business auto insurance).


Personal auto insurance is meant to cover your every day, non-business driving. When you use your car or truck regularly for business, that requires commercial auto insurance, which is calculated differently than personal auto insurance.


Commercial auto insurance and personal auto insurance have a lot in common. They tend to offer similar types of coverages, though commercial auto insurance policies may provide higher coverage limits. Common commercial auto insurance coverages include:


  • Bodily injury
  • Property damage
  • Combined single limit (both bodily injury and property damage)
  • Medical payments
  • Uninsured motorist coverage
  • Comprehensive physical damage
  • Collision coverage
  • Hired Auto (very important)
  • Non-Owned Auto (very important)
  • Symbol 1 liability when needed by contract


So, how do you tell when you need commercial auto insurance vs. personal auto insurance? That can be a tricky question, especially if you use a single vehicle for both personal and commercial use.


If you purchase a vehicle specifically for use at your business – such as a delivery truck, a truck used to travel to job sites, or a vehicle used to transport clients – then this should definitely be covered under a commercial auto insurance policy. Commercial auto insurance is also required when you use your vehicle to regularly transport goods or people for a fee, conduct service (ex. you have a mobile pet cleaning van), or to haul special tools or a trailer that is used to conduct business. You should also purchase commercial auto insurance if employees drive the vehicle as part of the business, OR if they drive their own vehicles as part of your business. Further, if you rent or lease vehicles for business use, then a commercial auto policy is a necessity.


One instance where you do not need to purchase commercial auto insurance is if you primarily use your vehicle to commute to and from your place of business, such as a single office location.


A good way to figure out if you need commercial auto insurance is to ask yourself this question – aside from commuting to and from work, do I regularly need my vehicle to operate my business? If the answer is yes, you should probably sit down with an insurance agent to discuss commercial auto insurance options.


At Fusco & Orsini Insurance Services, we’d be glad to help you determine if you need commercial auto insurance and what type of policy coverages would be best for your budget and your situation. To learn more about commercial auto insurance (aka business auto insurance) call us at (858) 384-1506 orcontact us through our website.

By: Michael Fusco

CEO & Principal of Fusco Orsini & Associates

(858) 384‑1506

Recent Post

Open Enrollment Making Smart Health Insurance Choices. Text graphic on blue background with green.
by Mike Fusco 8 September 2025
Open enrollment for employee health insurance explained. HR leaders and employees can compare workplace benefits to make smart coverage decisions.
Graphic with green background that reads “Pop Quiz: 10 Questions Every Business Owner Should Answer
by Mike Fusco 29 August 2025
Think your business is covered? Take our Insurance IQ Quiz to spot gaps & protect against today’s biggest risks.
Back-to-school is the perfect time for a business coverage check. Update goals and policies.
by Mike Fusco 25 August 2025
Back-to-school season is the perfect time for business owners to take a snapshot, review coverage, set goals, and close insurance gaps for growth.
Show More