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Is Car Insurance Cheaper on Commercial Vehicles?

commercial auto insurance

My business requires multiple vehicles- can I have them all covered under the same policy?

Good news – yes you can!

Choosing the right car insurance policy is crucial, especially when it comes to commercial auto insurance. The distinctions between policies for individuals, policies for individuals using a vehicle for business, and policies for businesses with a fleet of vehicles can be subtle but important. That’s why we’ve broken down these differences to ensure you select the most appropriate policy that caters to your needs.

Commercial Auto vs. Commercial Fleet

Commercial auto insurance is necessary for people who drive as part of their business and can cover accidents where someone is injured or killed, liabilities when transporting products and, replacement car coverage for when commercial vehicles are being repaired. Vehicles owned by a business require commercial auto insurance to cover multiple drivers and vehicles. It adds a layer of protection to damages that can be caused and usually covers less than 5 vehicles.

Commercial fleet insurance is very similar to commercial auto insurance and applies to businesses that have multiple vehicles. Fleet insurance provides coverage to a group of business vehicles, which can either be all cars, all trucks, or a combination of cars and trucks. The main difference between auto fleet insurance and truck fleet insurance is the type of vehicles being insured. Auto fleet insurance covers cars and vans, while truck fleet insurance covers heavy-duty trucks. In addition, truck fleet insurance typically provides coverage for cargo, whereas auto fleet insurance typically does not. However, both types of fleet insurance offer many of the same coverages, such as liability and physical damage coverage.

It covers across a fleet of business vehicles and all drivers within a business. A fleet policy has no restrictions for the kinds of vehicles that are insured within it – whether that’s size or body type. A business owning over 5 commercial vehicles in its name should consider the commercial fleet policies.

Can I Use Standard Insurance?

Standard car insurance may be enough for individuals who use their car for business purposes such as company errands, visiting clients, or transporting goods. However, using a personal car for business purposes should be included in the individual’s insurance policy and won’t cover multiple cars owned by a business.

What Will Work Best for Your Business?

Insurance rates for multiple vehicles can be determined by the number of vehicles, types of vehicles, individuals who will be driving the vehicles, or the systems in place to secure the vehicles.

The bottom line is that a business can insure multiple vehicles under the same policy – commercial auto insurance or commercial fleet insurance. Revising and adjusting these policies to suit your business needs can ensure extra protection! For assistance on picking an insurance policy, contact the friendly team at All-Risks Insurance Brokers Danforth today.


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