What Commercial Auto Insurance Covers
Commercial auto insurance covers vehicles owned, leased, or used by your business — trucks, vans, company cars, and specialty vehicles. It protects your business from the financial consequences of accidents, whether your driver is at fault or not, and covers vehicles and drivers that personal auto policies specifically exclude.
Unlike personal auto insurance, commercial policies are designed for the higher liability exposures that come with business use — larger vehicles, multiple drivers, heavier daily mileage, and cargo exposure.
Personal auto won't cover you: If one of your employees gets in an accident while driving for work — even in their personal vehicle — and you don't have commercial auto or hired/non-owned auto coverage, your business is exposed to a lawsuit with no insurance to respond to it. This is one of the most common coverage gaps we find in business reviews.
Liability Coverage
Pays for bodily injury and property damage your driver causes to others — legally required in Illinois.
Physical Damage (Collision)
Covers repair or replacement of your vehicle after an accident, regardless of fault.
Comprehensive Coverage
Fire, theft, vandalism, weather, and non-collision damage to your business vehicles.
Uninsured Motorist
Protects your driver and vehicle if hit by a driver with no insurance or insufficient coverage.
Hired & Non-Owned Auto
Covers employees using their personal vehicles or rented vehicles for business purposes.
Medical Payments
Pays medical expenses for your driver and passengers after an accident, regardless of fault.
Which Illinois Businesses Need Commercial Auto
Any business that owns or operates vehicles — or whose employees drive for work purposes — needs commercial auto coverage. This includes businesses where employees occasionally use their own vehicles for business errands.
Trucking Companies
DOT-regulated coverage for fleets of any size.
Contractors
Work trucks, vans, and tool trailers traveling to job sites.
Food Delivery
Restaurants and catering businesses with delivery drivers.
Landscaping & Snow
Seasonal fleets with trailers and heavy equipment transport.
Service Technicians
HVAC, plumbing, electrical, and other trades with mobile teams.
Any Business Fleet
Company cars, sales vehicles, and employee-driven fleets.
Commercial Auto Insurance Costs in Illinois
Commercial auto premiums vary widely based on the type of vehicle, how it's used, your drivers' records, and coverage limits. General ranges for Illinois businesses: passenger vehicles and light vans typically run $1,200–$3,500 per vehicle per year. Heavy commercial trucks and specialty vehicles range considerably higher based on weight class and cargo.
Key cost factors include: driver MVR history, vehicle type and weight, annual mileage, radius of operation, cargo type, and whether vehicles are stored overnight at a secured location. A fleet discount is often available when insuring three or more vehicles.
Commercial Auto Insurance FAQs
Authoritative Sources
1 Illinois Secretary of State — Commercial Vehicle Requirements: ilsos.gov
2 Illinois Vehicle Code — Minimum Insurance Requirements, 625 ILCS 5/7-601: ilga.gov
3 Federal Motor Carrier Safety Administration (FMCSA) — Insurance Requirements: fmcsa.dot.gov
4 Insurance Information Institute — Commercial Auto: iii.org
Last Updated: February 2026