Do I Need Commercial Auto Insurance for My Business Vehicle?
If you use your vehicle for work, you might assume your personal auto policy has you covered. But that’s not always the case.
In California, Commercial Auto Insurance may be required—even if you’re a sole proprietor or using your personal car.
Here’s what you need to know to stay protected and legal.
What Is Commercial Auto Insurance?
Commercial Auto Insurance is designed to cover vehicles used for business purposes. It protects your business from liability and property damage in the event of a crash, theft, or other vehicle-related incidents.
Why Personal Auto Insurance May Not Be Enough
Most personal policies exclude business use beyond commuting. If you drive for deliveries, transport equipment, visit clients, or allow employees to drive, your personal insurance may deny a claim.
If your business relies on your vehicle—even part-time—it’s smart to review your coverage. The risk of a denied claim can far outweigh the cost of a proper commercial auto policy.
You Likely Need Commercial Auto Insurance If You:
Use your vehicle to transport goods or equipment
Drive to multiple job sites or client locations
Let employees drive your vehicle
Haul trailers or tools regularly
Deliver food, products, or services
Operate under a business name or LLC
Even if you’re a contractor, consultant, or freelancer, your usage might still require a commercial policy.
What Does It Cover?
A Commercial Auto Policy typically includes:
Liability Coverage – If you're at fault in an accident
Physical Damage – Collision and comprehensive protection
Medical Payments – Covers driver and passengers
Uninsured/Underinsured Motorist – In case the other driver isn’t covered
Hired & Non-Owned Auto Coverage – For rented or employee-owned vehicles used for business
Let CST Insurance Services help you determine whether your vehicle needs to be insured under a commercial policy—and what options are best for your needs and budget.
