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What Is Commercial Auto Insurance? 

Commercial auto insurance is a type of business insurance designed specifically to cover vehicles used for work purposes. Unlike personal auto insurance, it provides broader protection tailored to the risks faced by businesses that rely on vehicles for their operations. 

Who Needs A Commercial Auto Insurance Policy In North Carolina?

Commercial auto insurance isn’t just for big rigs and delivery vans. If a vehicle is used primarily for business purposes, not just commuting, then commercial auto insurance is a necessity. Even if your business uses personal vehicles occasionally for work, it’s a good idea to check with one of our insurance agents to see if you need commercial coverage. Here’s a breakdown of who typically needs commercial auto coverage.

Businesses That Own Any Vehicles 

This includes cars, trucks, vans, and even specialized equipment used for work purposes.

Businesses With Employees Who Use Personal Vehicles For Work

Even if the vehicles themselves aren’t owned by the business, if employees are using them for deliveries, errands, or traveling to job sites, commercial insurance is needed.

Ride-Sharing And Taxi Services

These businesses rely on vehicles for their core function, and so require commercial coverage.

Delivery Services

Whether it’s pizza or packages, if your business uses vehicles to transport goods, you’ll need commercial insurance.

Construction Companies And Contractors

Vehicles used to haul equipment or transport workers to job sites need commercial coverage.

Landscapers, Plumbers, Electricians, And Other Service Providers

If a vehicle is essential to how you provide your service, you likely need commercial insurance.

Are you looking for Business Insurance Coverage? At The Huneycutt Group, we represent over a dozen companies and brokers to help you find the coverage you’re looking for, at the right price.

Does North Carolina Require Commercial Auto Insurance?

North Carolina requires commercial auto insurance for certain vehicle uses, but it also has a minimum liability requirement for all vehicles regardless of commercial use. It’s important to remember that the minimum coverage might not be enough protection for your business. Depending on the type of vehicle, the value of the cargo you carry, and the risks associated with your industry, you may need higher liability limits and additional coverage options.

The minimum required limits in North Carolina are:

  • $30,000 per person for bodily injury
  • $60,000 per accident for bodily injury
  • $25,000 per accident for property damage (often written as 30/60/25)

Another type of business insurance that’s mandatory by state law is Workers’ compensation insurance.

What Does A Commercial Auto Insurance Policy Cover?

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Liability Coverage

This is the cornerstone of commercial auto insurance. It pays for medical expenses and property damage caused by your business vehicles to others in the event of an accident. This protects your business from potentially crippling lawsuits. 

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Physical Damage Coverage

This covers damage to your own business vehicles caused by accidents, theft, vandalism, weather events, or other perils. It can include:

  • Collision coverage: Pays for repairs to your vehicle if you collide with another object.
  • Comprehensive coverage: Pays for repairs to your vehicle from non-collision incidents like theft, vandalism, or weather damage.
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Additional Important Coverage

Beyond the core protections, commercial auto insurance can be customized to your specific needs with various add-on coverages, such as:

  • Medical payments coverage: Pays for medical bills for anyone injured in your vehicle, regardless of fault.
  • Uninsured/Underinsured motorist coverage: Protects you if the driver who caused the accident has no insurance or not enough insurance to cover the damages.
  • Rental reimbursement coverage: Helps cover the cost of a rental car while your business vehicle is being repaired.

What Factors Affect Business Auto Insurance Rates In North Carolina?

Business Factors

  • Industry: Businesses in high-risk industries like construction, logging, or landscaping will typically pay more for insurance compared to lower-risk office-based businesses.
  • Vehicle Type and Use: The type of vehicles you use (cars, trucks, specialized equipment) and how they are used (frequency of travel, distance driven, cargo hauled) all influence your rate. Higher-value vehicles, those used more frequently, or those carrying valuable cargo will lead to higher premiums.
  • Driving History: The driving records of the employees who will operate the vehicles significantly impact rates. Accidents, traffic violations, and young drivers will increase your premium.
  • Claims History: A history of accidents and claims filed by your business will lead to higher rates.

Location Factors

  • Location of Your Business: Rates are generally higher in densely populated areas like Raleigh or Charlotte compared to rural areas due to higher traffic congestion and accident risks.

Policy Coverage

  • Coverage Limits: The amount of liability coverage you choose (higher limits mean more protection but also a higher premium).
  • Additional Coverages: Adding coverages like uninsured motorist or roadside assistance will increase your premium but may be necessary depending on your business needs.


  • At The Huneycutt Group, we’ll talk to you in detail about your business to see what types of discounts you’ll qualify for; such as, having good driving records, installing safety features in vehicles, or taking defensive driving courses for employees.

Insurance Companies And Brokers We Represent

Builders Mutual
Liberty Mutual
The Hartford
Philadelphia Insurance

Lloyds of London
Berkshire Hathaway
NC Rate Bureau
Johnson & Johnson

Appalachian Underwriters
Jackson Sumner

NC Commercial Auto Insurance FAQs

Commercial auto insurance costs vary, starting at an average of $147 per month. Factors influencing this cost include the industry, vehicle types, driving history of employees, your location and discounts that could be applicable.

North Carolina commercial auto insurance minimum requirements are $30,000 bodily injury per person, $60,000 per accident, $25,000 property damage per accident. It’s important to note that these minimum coverages may not be enough to protect your business.

In general, commercial auto insurance costs more than personal auto insurance. That’s because commercial policies tend to have higher limits, more risk and possibly more drivers. It’s important to discuss your needs with your insurance agent at The Huneycutt Group.

Contact The Huneycutt Group