Typical annual premium by vehicle
These are broad planning ranges for one vehicle with $1,000,000 liability and physical damage, before adjusting for experience, record, radius and state. They are not quotes.
| Vehicle | Typical range / year | Per month |
|---|---|---|
| Car / SUV used for business | $1,200 – $2,800 | $100 – $233 |
| Pickup (business use, no for-hire hauling) | $1,500 – $3,500 | $125 – $292 |
| Work van / service truck | $1,800 – $4,500 | $150 – $375 |
| Cargo / sprinter van (for-hire) | $3,500 – $9,000 | $292 – $750 |
| Food truck | $2,000 – $5,000 | $167 – $417 |
| Passenger van / NEMT | $4,000 – $10,000 | $333 – $833 |
| Box truck (for-hire) | $6,000 – $14,000 | $500 – $1,167 |
| Hotshot (pickup + trailer, for-hire) | $8,000 – $16,000 | $667 – $1,333 |
| Dump truck | $8,000 – $18,000 | $667 – $1,500 |
| Tow truck / wrecker | $7,000 – $15,000 | $583 – $1,250 |
| Semi / tractor (for-hire) | $10,000 – $22,000 | $833 – $1,833 |
New ventures often price at or above the top of these ranges; established operators with clean loss runs can land below them. Adjust for your situation →
What drives the price
- Vehicle size and use. Heavier vehicles and for-hire hauling create bigger liability exposures.
- Experience and loss history. The single biggest factor for trucking. New authorities pay a premium until they build 1–3 years of clean history.
- Drivers. Age, years of CDL experience, MVR violations, and (for trucking) PSP reports.
- Radius and lanes. Local work is cheaper than long-haul; some metro areas and states cost much more.
- Cargo. Hazmat, auto-hauling, and high-theft freight raise both liability and cargo premiums.
- Limits and deductibles. Higher liability limits cost more; higher physical-damage deductibles cost less.
- Garaging location. Where vehicles are kept overnight affects theft, weather and litigation risk.
How to lower your premium
- Pay in full or put more down instead of financing the premium.
- Raise physical-damage deductibles to $2,500 or $5,000 if you can absorb them.
- Only list drivers who actually drive, and screen MVRs before hiring.
- Use dash cams and telematics programs your insurer gives credit for.
- Keep your MCS-150 and radius accurate — misreporting causes surprise audits and premium adjustments.
- Shop through an agency with access to several trucking markets, especially at your first and second renewals.
Frequently asked questions
Why did my commercial auto premium go up when I had no claims?
Commercial auto has had years of rate increases industry-wide because claim costs — repairs, medical care and jury verdicts — have risen faster than premiums. Your rate can rise even with a clean record; shopping at renewal is how you find out whether it's the market or you.
Is commercial auto insurance tax deductible?
Premiums for vehicles used in your business are generally a deductible business expense. Ask your tax professional how it applies to you.
How is commercial auto billed?
Most policies are annual, with options to pay in full, in installments, or through premium financing. Trucking policies may be auditable — premium is adjusted after the term based on actual mileage or revenue.