Commercial auto insurance costs $203 to $245 a month for most small businesses in 2026
Progressive, the largest commercial auto insurer in the US, says its new 2025 customers paid a median of $207 a month per vehicle for a business car, van or small truck, and $203 for a contractor's vehicle. Insureon's small business customers pay $245 a month. Trucks that haul for hire cost $635 to $821 a month at the median.
What commercial auto insurance costs, by type of vehicle
| Type of vehicle (Progressive) | Median a month | Average a month |
|---|---|---|
| Business auto | $207 | $276 |
| Contractors | $203 | $260 |
| Tow truck | $355 | $606 |
| For-hire specialty truck (log, gravel, garbage) | $635 | $734 |
| For-hire transport truck (semis, general freight) | $821 | $926 |
Progressive's figures are monthly premiums per vehicle for new 2025 policies with liability and physical damage cover, for drivers with no violations. Business auto means cars, SUVs, small trucks and vans used for work. Sources: Progressive Commercial, commercial auto insurance cost (2025 new policies, per vehicle, liability and physical damage, clean driving records).
What small businesses pay through Insureon
| All small business customers | $245 a month |
|---|---|
| Nonprofits | $168 a month |
| Real estate businesses | $192 a month |
| Construction businesses | $264 a month |
| Installation contractors | $299 a month |
| Customers paying under $200 a month | 40% |
| Customers paying $200 to $400 a month | 29% |
| Lowest and highest yearly premium | Under $375 to over $16,000 |
Insureon's customers are mostly small: fewer than five employees and five years or less in business. Sources: Insureon, commercial auto insurance cost (policies bought by 100,000 small business customers, updated Mar 4, 2026).
What changes your price
- The kind of vehicle. A car or van for work had a median of $207 a month at Progressive. A semi hauling freight for others was $821.
- How many vehicles. Both Progressive and Insureon price per vehicle, so each one you add raises the bill.
- Your industry. At Insureon, nonprofits paid $168 a month and installation contractors $299.
- Driving records. Progressive's figures are for drivers with no violations. Accidents and tickets raise the price.
- Where you work. Insureon's state figures run from $154 a month in California to $412 in Florida. Busy roads, crime and repair costs all play a part.
- Coverage. Liability only is the cheapest. Adding cover for your own vehicle, like collision and comprehensive, costs more.
Why the median matters more than the average
A few businesses with many vehicles or poor records pay very large premiums. That pulls the average up, so most owners pay less than the average. Progressive says many of its customers pay closer to the median.
The gap is biggest for tow trucks: $355 at the median against $606 on average. For a business van it is $207 against $276.
Personal car insurance usually does not cover business driving. If the business owns the vehicle, it needs commercial cover. If staff use their own cars for work, Insureon says hired and non-owned auto cover can often be added to a commercial auto or general liability policy at low cost.
How to judge the quote in your hand
- Check if the quote is per vehicle or for the whole fleet.
- Check if it includes physical damage cover, or liability only.
- Check the liability limits, such as $1 million per accident.
- Check the deductible you would pay on a claim.
- Compare one vehicle with the $203 to $245 medians above.
Ways to pay less
- Pay the year in full. Progressive lists a paid in full discount.
- Bundle with general liability or a business owner's policy. Both Progressive and Insureon mention bundling.
- Show a record of continuous insurance. Progressive offers prior insurance savings.
- Keep drivers' records clean and choose a deductible you can afford.
- Compare quotes from more than one insurer.
How we got these numbers
Every number on this page comes from an insurer or agency that sold the policies and says how it worked the number out. Progressive Commercial, the largest commercial auto insurer in the US, posts the median and average monthly premium for new 2025 policies, per vehicle, for liability and physical damage cover, for drivers with no violations. Insureon, an online agency, posts figures from policies bought by its 100,000 small business customers, most with fewer than five employees. It calls its figure the average, but says it is worked out from the median. The median is the middle price: half of the customers pay less and half pay more. It is closer to what most people pay than the average, because a few very large policies pull the average up. Many sites still quote Progressive's older 2024 figures, such as $272 for contractors. We use the 2025 figures on Progressive's page today. We do not add our own guesses, and this page has no calculator because no source says how each choice moves the price. All numbers were checked on September 26, 2026.
Common questions
How much is commercial auto insurance a month?
Progressive's median was $207 a month per vehicle for business auto and $203 for contractors in 2025. Insureon's small business customers pay $245.
How much is commercial truck insurance?
At Progressive, for-hire trucks had a median of $635 to $821 a month, and tow trucks $355.
Why is commercial auto more than personal auto?
It covers business driving, often with higher limits, more drivers and heavier use.
Do I need commercial auto insurance?
If your business owns the vehicle, yes in almost every state. Personal policies usually do not cover business use.