What Is Commercial Auto Insurance?
Commercial auto insurance covers liability arising from vehicles a business owns or uses for work, such as trucks, vans, and company cars. Optional coverages can include collision and comprehensive for the vehicles themselves, hired auto coverage for rented vehicles, and non-owned auto liability when employees use their own vehicles for business.
Oakview Insurance Services, Inc. writes commercial auto insurance for businesses in Yuba City, Marysville, and the greater Yuba-Sutter region, from a single work truck to a full fleet.
As an independent agency, we compare options from multiple insurers and build the policy around how your business actually uses its vehicles. Call (530) 674-5054 or start a quote online.
Does Your Business Need Commercial Auto, or Will Personal Auto Cover You?
The short answer: It depends on how the vehicle is owned and used. Personal auto policies are built for personal driving, and many limit or exclude certain business uses, such as deliveries, hauling for others, or vehicles owned by a business. If a vehicle is used regularly for work, a commercial auto policy is often the better fit.
These are common signs your business needs commercial auto coverage:
- Vehicles are titled in a business name
- Employees drive company vehicles
- You transport goods, equipment, or people for business purposes
- You haul tools or materials to job sites
- You make deliveries
- Your clients or contracts require higher liability limits than a personal policy provides
Not sure where you fall? Call us at (530) 674-5054 and we will walk through how your vehicles are used.
Which Coverage Fits Your Vehicles?
The right structure depends on who owns the vehicle and how it is used. This table shows the typical starting point. Carrier rules vary, so treat it as a guide, not a guarantee.
| Situation | Typical coverage | What to watch |
|---|---|---|
| Vehicles owned or leased by the business | Commercial auto policy with liability and physical damage | Liability limits, listed drivers, and long-term leased vehicles scheduled on the policy. |
| Employees drive their own cars on errands | Non-owned auto liability | The employee’s personal policy usually responds first. Non-owned coverage protects the business, often on an excess basis, and generally does not cover damage to the employee’s vehicle. |
| You rent or borrow vehicles for business | Hired auto liability, with hired physical damage if needed | Damage to the rented vehicle needs physical damage coverage, and vehicles borrowed from employees, partners, or LLC members may need different coverage. |
| Owner’s personal vehicle used occasionally for work | Personal auto may work, depending on the carrier | Disclose business use, and confirm how the policy treats it. |
| Heavier trucks or hauling for others | Commercial auto, often with cargo coverage | Depending on weight and operations, a California Motor Carrier Permit or federal filing may also be required. |
Commercial Auto Coverage Options
Liability
Liability coverage is the foundation of a commercial auto policy. It pays for bodily injury and property damage your business vehicles cause to others, along with legal defense. For private passenger vehicles, California’s minimum liability limits rose on January 1, 2025 to $30,000 per person and $60,000 per accident for bodily injury and $15,000 for property damage. Certain commercial operations, such as for-hire carriers, are subject to higher state or federal minimums, and businesses often need higher limits to address their exposures and satisfy contract requirements.
Physical Damage
Physical damage coverage protects your own vehicles. Collision pays for damage from hitting another vehicle or object. Comprehensive covers losses such as theft, vandalism, fire, and weather. Lenders and lessors usually require both, and they make sense for newer or higher-value vehicles.
Uninsured and Underinsured Motorist
Uninsured and underinsured motorist bodily injury coverage can help pay covered injury damages when an at-fault driver has no insurance or not enough insurance. Separate uninsured motorist property damage or collision deductible coverage may also be available for vehicle damage. California insurers must offer uninsured motorist coverage, and declining it requires a written waiver.
Medical Payments
Where available, medical payments coverage can pay covered medical expenses for eligible vehicle occupants after an accident, regardless of fault, up to the policy limit. It commonly excludes work injuries for which workers compensation benefits are payable.
Hired and Non-Owned Auto
Hired auto liability can protect your business against covered liability arising from vehicles it rents, hires, leases, or borrows, subject to the policy’s definitions and exclusions. Vehicles obtained from employees, partners, or LLC members may need different coverage, and damage to a hired vehicle itself requires physical damage coverage.
Non-owned auto liability can protect your business against covered liability when employees use their own vehicles for business. The employee’s personal auto policy usually responds first, and non-owned coverage often applies on an excess basis. It generally does not cover damage to the employee’s vehicle, and coverage for the employee personally depends on the policy and endorsements. Non-owned coverage is often available even for businesses that own no vehicles.
What Commercial Auto Usually Does Not Cover
A commercial auto policy covers vehicles, not everything in or around them. These exposures generally need separate coverage:
- Tools and equipment in the vehicle. Tools stolen from a truck are usually covered under inland marine, not auto.
- Goods you haul for others. Customer cargo generally needs motor truck cargo coverage.
- Injuries to your own employees. An employee hurt while driving for work is generally covered by workers compensation.
- Mobile equipment used off-road. Forklifts, loaders, and similar equipment are often covered under general liability and inland marine rather than auto.
Businesses We Insure
We write commercial auto coverage for businesses throughout Yuba, Sutter, Butte, and Colusa Counties, including:
- Contractors and construction businesses
- Plumbers, electricians, and HVAC companies
- Landscapers
- Delivery and courier services
- Restaurants, caterers, and food service businesses
- Florists and retail delivery
- Real estate agents and property managers
- Wholesale and distribution businesses
- Nonprofits and churches with passenger vans
What We Ask When Quoting Commercial Auto
An accurate quote starts with how your business actually operates. We typically ask:
- How many vehicles you have, their types and weights, and how they are titled
- How the vehicles are used, such as deliveries, job sites, or passenger transport
- How far each vehicle travels and how far from your base it operates
- Who drives, and each driver’s record
- Whether employees use personal vehicles for business
- Your current coverage and recent claims
The more we understand your operation, the better we can match you with the right carrier and coverage. Because commercial auto often works alongside general liability, workers compensation, and commercial property, we can review the full program together so the pieces fit.
Serving Businesses Throughout Yuba-Sutter
We write commercial auto insurance for businesses in Yuba City, Marysville, Live Oak, Olivehurst, Linda, Gridley, Wheatland, Plumas Lake, Colusa, Chico, and throughout Yuba, Sutter, Butte, and Colusa Counties, from contractors hauling equipment on Highway 20 to delivery routes across the Sacramento Valley.
Oakview is rated 4.9 stars, with 850+ five-star Google reviews, and has been voted Best Agency in Yuba, Sutter, and Colusa Counties multiple years running. Read what clients say on Google or meet our team.
Commercial Auto Insurance FAQs
Does personal auto insurance cover my vehicle if I use it for work?
Sometimes, but not always. Many personal auto policies limit or exclude certain business uses, such as deliveries, hauling for others, or vehicles owned by a business, and the answer depends on the policy, the vehicle, and how it is used. If you use a vehicle regularly for work, disclose that use to your carrier and ask whether commercial auto or non-owned auto coverage is needed.
Do I need commercial auto insurance for one work truck?
Often, yes, especially if the truck is titled to the business, driven by employees, used for deliveries, or used to haul equipment. Some personal auto policies allow limited business use of a pickup, so the answer depends on the policy and how the truck is used. We can review your situation and recommend the right fit.
What is hired and non-owned auto insurance?
Hired auto liability can protect your business against covered liability from vehicles it rents, hires, leases, or borrows, though vehicles obtained from employees, partners, or LLC members may need different coverage. Non-owned auto liability can protect your business when employees use their own vehicles for business, often on an excess basis, and it generally does not cover damage to the employee’s vehicle. Damage to a hired vehicle needs physical damage coverage.
What are California’s minimum auto liability limits?
For private passenger vehicles, California’s minimum liability limits rose on January 1, 2025 to $30,000 per person and $60,000 per accident for bodily injury and $15,000 for property damage. Certain commercial operations are subject to higher state or federal minimums, and businesses often need higher limits to address their exposures and satisfy contract requirements.
Are tools in my work truck covered by commercial auto?
Usually not. Commercial auto covers the vehicle and your liability for driving it. Tools and equipment stored in the truck are generally covered under inland marine, and goods you haul for customers generally need cargo coverage.
How much does commercial auto insurance cost in Yuba City?
Cost depends on the number and type of vehicles, how they are used, how far they travel, driver records, and coverage limits. Rates can vary widely between carriers, which is why comparing multiple options matters. Call (530) 674-5054 for a comparison quote.
Can you insure a mix of personal and commercial vehicles?
Yes. Depending on ownership, vehicle use, and carrier requirements, we may arrange coverage through one or more policies. Personally owned vehicles used for business may need commercial auto coverage, while vehicles used primarily for personal driving may fit a personal auto policy. We coordinate them so you are not paying for overlap or leaving gaps.
Do you insure fleets?
Yes. We work with businesses running anywhere from one vehicle to larger fleets throughout Northern California. Fleet policies can offer different rating options and simpler certificate and vehicle management.
Talk to Oakview About Commercial Auto
Whether you have one work truck or a full fleet, we can review your current coverage or quote a new policy. Call (530) 674-5054, email info@oakviewins.com, or request a commercial auto quote online.