The Cheapest Commercial Auto Insurance Companies in 2025
Auto-Owners, State Farm, and Erie Insurance are the cheapest average commercial auto insurance companies.
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Written byJamie Johnson
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Jamie Johnson is a Kansas City-based personal finance writer who’s been writing for Compare.com since 2023. Her work has also been featured on several of the top finance and business sites in the country, including Insider, Credit Karma, Bankrate, Rocket Mortgage, Fox Business, Quicken Loans, and The Balance.
For the past seven years, she’s dedicated more than 10,000 hours of research and writing to more than 2,000 articles about personal finance topics.
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Edited byKatie Powers
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Katie Powers is an insurance and personal finance editor for Compare.com. Katie loves using her extensive writing and editing experience to help readers make more informed decisions with their money. She's also a licensed insurance producer in the state of New York and has seen her work appear in several notable outlets, including the Boston Globe, Insurify, Penguin Random House, and more.
Katie earned a Bachelor of Arts and Master of Arts in writing, literature, and publishing from Emerson College. She has been editing for Compare.com since 2025.
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In This Article
The average cost of commercial auto insurance in the U.S. ranges from $200 to $1,200 per month. A variety of factors determine how much you pay for commercial auto insurance, including your coverage limits, deductible, industry, and fleet size.[1]
For example, a construction firm with multiple work trucks will pay more than a cleaning or courier service that only operates a few vehicles. And delivery companies that drive long distances daily may have higher premiums due to increased risk exposure.
Auto-Owners, State Farm, and Erie Insurance are three of the cheapest average commercial auto insurers. That said, it’s essential to compare quotes and coverage options to determine the best insurer for your business.
Key Takeaways
Commercial auto insurance tends to cost more than personal auto insurance because it protects your business from greater risks.
You can save on commercial car insurance by increasing your deductible, bundling policies, and comparing quotes.
Some states have higher minimum liability requirements for commercial vehicles.
The 5 Cheapest Commercial Auto Insurance Companies
While most auto insurance companies consider the same general criteria, each insurer uses a slightly different formula to evaluate risk and determine insurance costs. So as you’re comparing quotes, you’ll notice that your rates vary slightly among insurers. Your exact rates will depend on your fleet size, industry, and location.
That said, the following five companies are the cheapest commercial auto insurers on average.
Auto-Owners Insurance
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Auto-Owners offers a wide range of auto coverage options, including roadside assistance, coverage for newly acquired vehicles, and coverage for additional expenses, like rental cars. You can also customize your policy with options like gap insurance, diminished value coverage, and hired auto liability insurance.[2]
The company also offers specialty fleet insurance for fleet vehicles and vehicles used for transport.[3]
Pros
Above-average J.D. Power customer satisfaction score[4]
Many available discounts and coverage options
Gap insurance is available
Cons
Not available nationwide
Must work with agent
Less robust mobile app than competitors
State Farm
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State Farm is an excellent commercial auto insurer, partly thanks to its Drive Safe & Save Business telematics program. When you sign up, you’ll receive a one-time premium discount for each eligible vehicle you enroll. From there, State Farm adjusts your premium at each policy renewal, depending on your employees’ driving habits.
In addition to the potential savings, Drive Safe & Save Business allows you to monitor your vehicles with detailed trip maps and driver feedback.[5]
Pros
Savings possible via telematics insurance program
Offers non-owned and hired car coverages
Strong claims process
Cons
Below-average J.D. Power customer satisfaction score[4]
Fewer discounts than competitors
Must sign up with agent
Erie Insurance
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Erie offers commercial auto insurance for owned and leased cars and trucks. The company offers a wide range of vehicle insurance coverages, including property damage, liability, collision, and comprehensive insurance.
For example, Erie will cover any lost earnings if you assist the company in the accident investigation. Erie will also reimburse you for legal fees if you face arrest following the accident.[6]
Pros
Top J.D. Power customer satisfaction rating[4]
Customizable coverage
Can increase coverage with Business Auto Enhancement bundle
Cons
Not available nationwide
Quotes not available online
Fewer discounts than some competitors
GEICO
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GEICO’s commercial auto policy covers the following types of vehicles: cars, vans, pickup trucks, service utility trucks, food trucks, and semitrucks.[7] Its commercial policies are for vehicles used for work purposes, ensuring businesses meet state insurance requirements.
GEICO offers competitive rates and a wide variety of discounts. The company also has an A++ (Superior) financial strength rating from AM Best, which reflects its ability to pay out claims.[8]
Pros
AM Best financial strength rating of A++ (Superior)
Fleet-management tools
Comprehensive mobile app
Cons
Not the best choice for large fleets
Limited in-person support
Mixed customer reviews
Progressive
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Progressive stands out for its affordability and flexibility. It offers various discounts, including paid-in-full, electronic funds transfer (EFT), and multi-policy discounts.[9] And if you sign up for the Snapshot ProView program, you’ll receive an automatic 5% discount upon enrollment.
If you have three or more vehicles enrolled, you’ll receive a full suite of fleet-management tools, including vehicle tracking, trip reporting, and geofencing.[10]
Pros
24/7 customer support
Flexible billing and payment options
Many available discounts
Cons
Poor Trustpilot rating
Doesn’t cover all vehicle types
Some policies offered by third parties
Protect Your Business Vehicles
Cover cargo vans, pickups, food trucks, and more
How to Get Cheaper Commercial Auto Insurance
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Commercial auto insurance is more expensive than a personal auto policy since it protects you from more costly risks. Fortunately, you can still find ways to save on your auto policy by doing the following:
Hire good drivers. The best way to lower your commercial auto insurance costs is by hiring workers with good driving histories. You can also provide your employees with extra training and encourage safe driving practices.
Increase your deductible. Your deductible is how you share risk with your insurer. You can reduce your premium rates by increasing your deductible. Just make sure your business can afford to pay this cost out of pocket if you have to file an insurance claim.
Bundle policies. Many insurers will offer you a discount for bundling your commercial auto insurance with other policies, like business owners insurance and workers’ compensation.
Take advantage of discounts. Inquire about any additional discounts your insurer offers, like savings for paying your premiums in full or signing up for a telematics program.
Compare auto insurance quotes. Finally, it’s important to receive auto insurance quotes from at least three different insurance companies. Comparing your options will help you find the cheapest rates while still securing the coverage you need.[11]
Average Commercial Auto Insurance Rates
Commercial car insurance rates vary depending on factors like your state, vehicle type, and driving record.
State regulations, population density, and local accident rates all influence how much you pay for commercial auto insurance. The type of vehicle you use — whether it’s a cargo van, pickup truck, or work van — also affects pricing depending on the average repair costs and risk levels.
The map below shows general ranges for average monthly commercial auto insurance premiums by state. As you can see, New Hampshire and North Carolina have some of the lowest premiums, while Connecticut and Maryland have some of the highest.
Average Commercial Auto Insurance Premiums
State  | Low End of Estimated Range | High End of Estimated Range |
|---|---|---|
| Alabama | $160 | $860 |
| Alaska | $130 | $700 |
| Arizona | $190 | $1,040 |
| Arkansas | $220 | $1,190 |
| California | $260 | $1,400 |
| Colorado | $240 | $1,310 |
| Connecticut | $350 | $1,910 |
| Delaware | $270 | $1,500 |
| Florida | $250 | $1,370 |
| Georgia | $290 | $1,590 |
| Hawaii | $140 | $760 |
| Idaho | $130 | $720 |
| Illinois | $190 | $1,020 |
| Indiana | $160 | $860 |
| Iowa | $130 | $720 |
| Kansas | $180 | $960 |
| Kentucky | $230 | $1,270 |
| Louisiana | $260 | $1,410 |
| Maine | $170 | $910 |
| Maryland | $360 | $1,990 |
| Massachusetts | $180 | $990 |
| Michigan | $270 | $1,470 |
| Minnesota | $210 | $1,130 |
| Mississippi | $180 | $980 |
| Missouri | $210 | $1,170 |
| Montana | $170 | $950 |
| Nebraska | $180 | $970 |
| Nevada | $310 | $1,680 |
| New Hampshire | $120 | $630 |
| New Jersey | $250 | $1,340 |
| New Mexico | $170 | $920 |
| New York | $320 | $1,770 |
| North Carolina | $100 | $560 |
| North Dakota | $140 | $780 |
| Ohio | $140 | $780 |
| Oklahoma | $200 | $1,110 |
| Oregon | $180 | $960 |
| Pennsylvania | $190 | $1,030 |
| Rhode Island | $250 | $1,360 |
| South Carolina | $290 | $1,570 |
| South Dakota | $150 | $810 |
| Tennessee | $160 | $890 |
| Texas | $260 | $1,420 |
| Utah | $180 | $1,010 |
| Vermont | $170 | $900 |
| Virginia | $220 | $1,180 |
| Washington | $200 | $1,080 |
| Washington D.C. | $380 | $2,050 |
| West Virginia | $180 | $960 |
| Wisconsin | $140 | $780 |
| Wyoming | $130 | $690 |
Find a Commercial Auto Insurance Policy
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Factors Affecting Commercial Auto Insurance Rates
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Understanding the factors that affect your commercial auto insurance rates can help you identify ways to lower your premiums. Here’s what can affect your commercial insurance premiums.
Vehicle type and use: Larger or specialized vehicles, like box trucks or service vans, often cost more to insure due to higher repair or replacement costs.
Driving history: Drivers with a history of accidents, speeding tickets, or other violations pose a higher risk, which can result in increased premiums.
Business location: States and cities with higher rates of accidents or theft typically have higher average insurance costs.
Coverage limits and deductibles: Higher limits offer more protection but raise your monthly premiums, while higher deductibles lower your premiums but increase your out-of-pocket costs.
Number of drivers and vehicles: Larger fleets cost more to insure since they increase your risk exposure and premiums.[1]
Cheap Commercial Auto Insurance FAQs
Here’s some additional information about how you can find cheap commercial auto insurance.
Which company has the cheapest commercial auto insurance?
Auto-Owners, State Farm, Erie Insurance, GEICO, and Progressive offer the cheapest average commercial auto insurance rates, according to Compare.com data. That said, the exact rates you receive can vary depending on your fleet size, location, deductible, and coverage limits.[1]
How much does commercial auto insurance cost?
In the U.S., commercial auto insurance ranges from $200 to $1,200 per month. Commercial auto insurance tends to cost more than personal auto insurance because it covers a broader range of risks.
Does every state require commercial auto insurance?
Yes. Most states require you to carry at least a minimum amount of liability coverage. Some states may also require uninsured motorist coverage and personal injury protection coverage.[11]
Is liability-only commercial auto insurance enough?
No. Liability-only commercial auto insurance doesn’t provide enough coverage because it only covers damages to the other vehicle. You also need comprehensive and collision coverage to protect your vehicles and drivers.
Does personal auto insurance cover business use?
No. In most cases, your personal auto insurance won’t cover any driving you do for business purposes. Commercial auto insurance protects against the specific risks that business vehicles and fleets face.
Sources
- The Hartford. "How Much Is Commercial Auto Insurance."
- Auto-Owners Insurance. "Commercial Auto."
- Auto-Owners Insurance. "Motor Carrier."
- J.D. Power. "More Small Businesses Consider Dropping Their Insurers, J.D. Power Finds."
- State Farm. "What are the benefits of Drive Safe & Save Business?."
- Erie Insurance. "Business Auto Insurance."
- GEICO. "Commercial Auto Insurance."
- AM Best. "AM Best Affirms Credit Ratings of Members of GEICO."
- Progressive Commercial. "Vehicle Insurance Discounts."
- Progressive Commercial. "Snapshot ProView."
- Insurance Information Institute. "Business Vehicle Insurance."
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Jamie JohnsonInsurance Writer
Jamie Johnson is a Kansas City-based personal finance writer who’s been writing for Compare.com since 2023. Her work has also been featured on several of the top finance and business sites in the country, including Insider, Credit Karma, Bankrate, Rocket Mortgage, Fox Business, Quicken Loans, and The Balance.
For the past seven years, she’s dedicated more than 10,000 hours of research and writing to more than 2,000 articles about personal finance topics.
Katie Powers is an insurance and personal finance editor for Compare.com. Katie loves using her extensive writing and editing experience to help readers make more informed decisions with their money. She's also a licensed insurance producer in the state of New York and has seen her work appear in several notable outlets, including the Boston Globe, Insurify, Penguin Random House, and more.
Katie earned a Bachelor of Arts and Master of Arts in writing, literature, and publishing from Emerson College. She has been editing for Compare.com since 2025.
