Commercial Auto Insurance Overview

Commercial Auto Insurance

Commercial auto insurance is often one of the largest—and fastest-rising—expenses for cost-sensitive businesses that own vehicles, utilize employee vehicles, or depend on hired/non-owned drivers to deliver goods, visit job sites, or transport people.

Over the past several years, pricing for commercial auto insurance has continued to climb across the U.S. market. Industry tracking shows that premium increases for commercial auto coverage have persisted for many consecutive quarters, even as some other commercial lines have cooled. In Texas specifically, regulators have noted a significant multi-year increase in statewide commercial auto rates over the 2017–2024 period, according to the Texas Department of Insurance.

The factors driving costs are not simply due to “more accidents.” Claim severity has risen dramatically, driven by vehicle repair costs, medical expenses, litigation dynamics, and what many analysts refer to as economic and social inflation. Additionally, AM Best has reported ongoing underwriting pressure in the commercial auto segment, including recent periods showing substantial losses.

Who this coverage is for includes contractors, service trades, field teams, delivery and distribution services (local and regional), private passenger fleets for business use, and any business utilizing hired and non-owned auto exposure, such as employees driving personal cars for work.

What we do differently for cost-sensitive businesses is crucial for ensuring smart structuring. Our role is to market your current commercial auto insurance program (your “package” and line-by-line breakdown), then rebuild it for price and coverage efficiency without creating hidden coverage gaps.

We typically review and optimize:

- Owned, hired, and non-owned structure to identify what’s truly needed versus duplicated.

- Vehicle and driver eligibility, including MVR standards, driver age and experience, and onboarding processes.

- Coverage symbols, limits, deductibles, and endorsements, where many “gotchas” reside.

- Loss control and underwriting stories, as how you present risk often influences pricing.

- Fleet safety tools, such as telematics and driver coaching, that can actually reduce premiums.

- Certificates and additional insured needs based on job site and contract requirements.

Common items that business owners miss, which can lead to expensive surprises, include the fact that hired and non-owned auto (HNOA) coverage isn’t automatic in many setups—yet it’s often the most common real-world exposure. MCS-90 and FMCSA filing requirements (if you operate with authority or interstate) can change what’s required and how it’s documented. Additionally, cargo and inland marine coverage can create gaps compared to auto physical damage, especially for tools and equipment in vehicles. Lastly, wrong radius and territory assumptions (regarding garaging, travel patterns, and out-of-state operations) can also lead to issues.