What Is Commercial Auto Insurance?

Commercial auto insurance is coverage for vehicles owned by or used for your business. Whether you drive a single work truck, operate a fleet of delivery vans, or use personal vehicles for business purposes, this insurance protects you from the financial impact of accidents, injuries, and property damage. When you're on the road for work in San Bernardino and throughout the Inland Empire, our insurance agents help you find the right coverage for your business vehicles.

Unlike personal auto insurance, commercial auto policies account for higher liability risks, more frequent use, and the fact that vehicles are essential to your business operations. If an employee causes an accident while making deliveries or a service vehicle is damaged in a collision, commercial auto insurance covers repair costs, medical bills, and legal expenses. For businesses in California, having the right coverage isn't just smart—it's often required by law.

This coverage applies when your business owns vehicles titled in the company name or when employees regularly use vehicles for business activities like transporting goods, visiting clients, or making service calls. The policy follows the vehicle, not the driver, which means any authorized employee operating your business vehicle is covered under your commercial auto policy.

What Does Commercial Auto Insurance Cover?

Commercial auto insurance includes several types of coverage that work together to protect your business from different risks on the road. Understanding what each component covers helps you build a policy that addresses your specific needs.

Bodily Injury Liability pays for medical expenses, lost wages, and legal costs when your business vehicle injures someone in an accident. This is required in California and covers passengers in other vehicles, pedestrians, and cyclists. If you're found at fault for an accident that seriously injures someone, this coverage prevents you from paying those costs out of pocket.

Property Damage Liability covers damage your business vehicle causes to someone else's property. This includes other vehicles, buildings, fences, and even cargo belonging to others. When your delivery truck backs into a customer's garage or your service van causes a multi-vehicle collision, property damage liability handles the repair bills.

Collision Coverage pays to repair or replace your business vehicle after an accident, regardless of who's at fault. If your work truck hits another vehicle, slides off the road in bad weather, or is damaged in a parking lot incident, collision coverage handles your vehicle's repair costs minus your deductible.

Comprehensive Coverage protects your business vehicles from non-collision events like theft, vandalism, fire, falling objects, and weather damage. When your company van is stolen from a job site or hail damages your fleet vehicles, comprehensive coverage pays for repairs or replacement.

Medical Payments Coverage pays medical expenses for you and your passengers after an accident, regardless of fault. This coverage helps with immediate medical bills, ambulance costs, and follow-up care without waiting for liability determinations.

Uninsured/Underinsured Motorist Coverage protects you when the at-fault driver lacks adequate insurance. California has many uninsured drivers, and this coverage ensures your business isn't left paying the bills when someone without insurance damages your vehicle or injures your employees.

Hired and Non-Owned Auto Liability extends coverage to vehicles your business doesn't own but uses for business purposes. This includes rental vehicles for business trips and employee-owned vehicles used for company errands. If an employee uses their personal car to pick up supplies and causes an accident, this coverage protects your business.

How Much Does Commercial Auto Insurance Cost?

Commercial auto insurance costs vary significantly based on factors specific to your business, vehicles, and operations. Understanding what influences your premium helps you make informed decisions about coverage and identify opportunities to manage costs.

The number and type of vehicles you insure directly affects your premium. A landscaping business with two pickup trucks pays differently than a delivery service with ten cargo vans. Larger, heavier vehicles generally cost more to insure because they can cause more damage in accidents. Specialized vehicles like refrigerated trucks or those carrying expensive equipment also increase premiums due to higher replacement costs.

How you use your vehicles matters significantly. A contractor who drives within San Bernardino and neighboring cities pays less than a trucking company operating throughout California. The more miles your vehicles travel and the broader the geographic area they cover, the higher your premium. Vehicles used for food delivery, ridesharing, or transporting hazardous materials face additional costs due to increased risk exposure.

Driver records play a crucial role in commercial auto insurance pricing. Insurance carriers review the motor vehicle records of all drivers who will operate your business vehicles. Employees with clean driving histories help keep premiums manageable, while those with accidents, violations, or DUIs significantly increase costs. Some businesses conduct regular driver screenings to maintain favorable rates.

Your coverage limits and deductible choices directly impact what you pay. Higher liability limits provide better protection but increase premiums. Choosing a higher deductible for collision and comprehensive coverage reduces your premium but means you pay more out of pocket when filing claims. Your industry also affects pricing—some businesses face inherently higher risks that translate to higher premiums regardless of other factors.

The best way to understand what commercial auto insurance costs for your specific situation is to get personalized quotes. FOCO Insurance Services compares rates from multiple carriers to find competitive pricing that fits your budget while providing the coverage your business needs.

Do I Need Commercial Auto Insurance?

If your business owns vehicles or employees regularly use vehicles for work purposes, you need commercial auto insurance. Personal auto policies specifically exclude coverage for business use, which means you're exposed to significant financial risk if you're operating under personal insurance alone.

You need commercial auto insurance when vehicles are titled in your business name. This includes company trucks, vans, cars, and specialized vehicles your business owns and operates. Even if you're a sole proprietor with one work truck, that vehicle requires commercial coverage once it's used primarily for business activities.

Businesses that regularly use employee-owned vehicles for work also need commercial auto coverage, specifically hired and non-owned auto liability. If your sales team drives personal cars to client meetings, your technicians use their vehicles to reach job sites, or employees run business errands in their own cars, your business faces liability exposure that personal auto policies don't cover.

Certain industries and business activities have higher exposure and definitely need commercial auto insurance. Delivery services, contractors, landscaping companies, catering businesses, real estate agencies, and any company that transports goods or provides mobile services should carry this coverage. If driving is a regular part of how your business operates, commercial auto insurance protects you from potentially devastating liability claims.

California requires businesses to carry auto liability insurance, and if you have commercial vehicles financed through a lender, they'll require comprehensive and collision coverage as well. Beyond legal requirements, commercial auto insurance protects your business assets, prevents personal financial exposure, and ensures you can continue operations after an accident without facing crippling expenses.

How to Get Commercial Auto Insurance in San Bernardino

Getting commercial auto insurance in San Bernardino starts with understanding California's minimum requirements and what your business specifically needs. California requires all vehicles to carry liability coverage with minimum limits of $15,000 for injury or death to one person, $30,000 for injury or death to more than one person, and $5,000 for property damage. However, these minimums rarely provide adequate protection for businesses—most need significantly higher limits.

When you're ready to get coverage, gather information about your vehicles including year, make, model, VIN numbers, and how each vehicle is used for business. You'll also need driver information including names, dates of birth, license numbers, and motor vehicle records for everyone who will operate your business vehicles. Insurance carriers review this information to determine your rates and coverage eligibility.

Working with an independent insurance agency like FOCO Insurance Services gives you access to multiple carriers and coverage options. We understand San Bernardino's business landscape and California's insurance requirements. Instead of shopping multiple companies individually, we handle that process and present you with competitive quotes that meet your needs.

Consider factors beyond price when choosing coverage. Make sure liability limits adequately protect your business assets, understand your deductibles, and confirm that coverage applies to all ways you use vehicles for business. Ask about available discounts for safety programs, multiple vehicles, and bundling commercial auto with other business insurance policies.

Once you select coverage, most policies can be bound quickly—sometimes the same day. You'll receive proof of insurance documents needed for vehicle registration and to comply with California requirements. Review your policy annually as your business grows, you add vehicles, or your operations change to ensure coverage keeps pace with your needs.

Get Your Free Commercial Auto Insurance Quote

Protecting your business vehicles with the right commercial auto insurance gives you confidence to operate without worrying about financial exposure from accidents, injuries, or property damage. FOCO Insurance Services has served San Bernardino and Inland Empire businesses for over 19 years, combining local expertise with access to top carriers.

We make getting covered simple and fast. Our team takes time to understand your business, how you use vehicles, and what risks you face. Then we shop multiple carriers to find coverage that fits your specific needs and budget. Whether you operate one work truck or manage a fleet, we help you get the protection your business deserves.

Ready to get started? Contact our team for a free commercial auto insurance quote today. You can reach us at (866) 315-7564, visit our office at 2075 E Highland Ave G in San Bernardino, or request a quote online. We're here to make insurance easy, honest, and accessible—so you can focus on running your business with confidence.