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May 6, 2026
If your business uses vehicles — or employees drive their personal cars for work — you need commercial auto coverage. Learn the state minimums, coverage types, and key endorsements.
If your business involves vehicles — company-owned trucks, vans, or cars, employees driving to client sites, or staff using their personal cars for work — a personal auto policy will not protect you. Personal auto insurance typically excludes coverage when a vehicle is being used for business purposes. Commercial auto insurance is how businesses stay protected on the road.
Dragon Insurance Services helps businesses across Pennsylvania, Texas, Virginia, Maryland, Ohio, Tennessee, and Kentucky find commercial auto coverage that covers their fleet, their employees, and their liability on the road. Explore our commercial auto insurance coverage options or read on for a full guide.
The most common commercial auto mistake is assuming a personal policy covers business use. It usually does not. Here is how they differ:
| Feature | Personal Auto | Commercial Auto |
|---|---|---|
| Business use coverage | Generally excluded or limited | Specifically designed for business use |
| Who can drive | Named insured and household members | Named employees and authorized drivers |
| Vehicle types | Passenger cars, light trucks | Cars, vans, pickup trucks, box trucks, flatbeds, and more |
| Liability limits | Up to ~$500K typically | $1M+ common; required for interstate commerce |
| Hired & non-owned auto | Not included | Available as key endorsement for business protection |
Commercial vehicles must meet at minimum the same liability requirements as personal vehicles in each state — and often higher limits depending on the vehicle weight and use. The state minimums for business vehicles are:
| State | Minimum Bodily Injury Liability | Minimum Property Damage |
|---|---|---|
| Pennsylvania | $15,000 / $30,000 | $5,000 |
| Texas | $30,000 / $60,000 | $25,000 |
| Virginia | $30,000 / $60,000 | $20,000 |
| Maryland | $30,000 / $60,000 | $15,000 |
| Ohio | $25,000 / $50,000 | $25,000 |
| Tennessee | $25,000 / $50,000 | $15,000 |
| Kentucky | $25,000 / $50,000 | $10,000 |
FMCSA note for interstate commercial vehicles
Vehicles operating in interstate commerce and regulated by the Federal Motor Carrier Safety Administration (FMCSA) must carry minimum liability ranging from $750,000 to $5,000,000 depending on cargo type and vehicle weight — far above state minimums. If your vehicles cross state lines carrying freight, contact us about the correct FMCSA filing requirements for your operation.
Liability Coverage
Covers bodily injury and property damage your vehicles cause to others. For most commercial vehicles, carrying significantly higher than state minimums is important — a serious accident can easily exceed minimums and expose your business assets.
Collision and Comprehensive
Collision covers your vehicle after an accident. Comprehensive covers theft, fire, vandalism, weather damage, and other non-collision losses. Both are typically required by lenders if your vehicles are financed or leased.
Uninsured / Underinsured Motorist
Protects your business vehicles and drivers when the at-fault driver carries no insurance or insufficient limits. Particularly important for vehicles operated in high-traffic corridors where the likelihood of encountering uninsured drivers is higher.
Hired Auto Coverage
Covers liability when your business rents or leases vehicles — for example, when an employee rents a car on a business trip. Without hired auto coverage, your business could be liable if a rented vehicle is involved in an accident during business use.
Non-Owned Auto Coverage
Covers liability when employees use their personal vehicles on company business — making deliveries, driving to client sites, running company errands. Their personal auto policy is primary, but if a claim exceeds their limits or their insurer denies coverage due to business use, your non-owned auto coverage fills the gap.
Medical Payments / Personal Injury Protection
Covers medical expenses for your drivers and passengers after an accident, regardless of fault. In no-fault states like Pennsylvania and Kentucky, this coverage is required for personal vehicles — and strongly recommended for commercial vehicles.
Factors that raise your rate
Factors that lower your rate
If any of your employees ever use their personal vehicles for business purposes — even occasionally — the answer is almost certainly yes. Without non-owned auto coverage, your business could be named in a lawsuit if an employee's personal policy denies a claim or has insufficient limits after a business-use accident. Non-owned auto is typically inexpensive and often added to a GL policy or commercial auto policy.
Have your vehicle list (year, make, model, VIN) and a list of drivers ready — we can usually get a quote started same day.
Visit us: 1525 Cedar Cliff Dr STE 202, Camp Hill, PA 17011
Serving businesses across PA, TX, VA, MD, OH, TN, and KY.
Dragon Insurance Services LLC is a licensed independent insurance agency. State minimum requirements shown are for liability coverage and reflect our best understanding of current law — verify with your state's motor vehicle authority. Commercial vehicles involved in interstate commerce may be subject to FMCSA requirements that exceed state minimums. Coverage availability, rates, and terms vary by carrier, state, vehicle type, driver profile, and business use. Contact us for a personalized quote.
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