Commercial Auto Insurance in California
The moment a vehicle is used for business, your personal auto policy starts asking questions.
Commercial auto insurance is mandatory for business-owned vehicles in California, with minimum liability limits of 30/60/15 — $30,000 per person for bodily injury, $60,000 per accident for bodily injury, and $15,000 for property damage.
Those are the same floors that apply to personal auto after the 2025 increase, and they are just as inadequate for a business. A single at-fault injury accident involving a company vehicle can exceed $60,000 without difficulty, and the business — not just the driver — is the defendant.
When you need commercial auto instead of personal
You need a commercial policy when:
- The vehicle is titled or registered to the business
- It is used for deliveries, service calls, or hauling tools, equipment or materials
- It carries a permanent business installation — racks, ladder rack, refrigeration, lettering
- Employees drive it
- It exceeds the weight or use limits your personal carrier will accept
The gray zone is the sole proprietor using a personal truck for work. Some personal carriers accept limited business use; many do not, and contractors are the group most often surprised by a denial. If you carry tools and materials to job sites, get the question answered before a claim, not after.
Hired and non-owned auto — the coverage businesses forget
Hired and non-owned auto liability (HNOA) covers your business's liability when an employee drives a vehicle your business does not own — their own car on a bank run, a rental on a business trip, a borrowed van.
Businesses with no company vehicles at all still need this. If an employee causes an injury accident while running a work errand in their own car, their personal policy responds first — and then the injured party looks at the business. HNOA is inexpensive and frequently added to a business owners policy.
What drives the cost
- Vehicle type and weight — a sedan and a box truck are different risks
- Radius of operation — local Westside delivery prices below long-haul
- Driver records — pulled on every listed driver, so hiring standards matter
- Cargo and equipment — what you carry may need its own coverage; tools in a stolen van are not covered by the auto policy
- Limits — most businesses should carry well above 30/60/15; a combined single limit of $1,000,000 is common and often required by contract
Bundling with a BOP or workers' comp typically earns 5%–15%. If you have employees, workers' comp is separately mandatory — an injured employee driving on the job is a comp claim, not an auto claim.
What are California's commercial auto minimum limits?
30/60/15 — $30,000 bodily injury per person, $60,000 per accident, $15,000 property damage. These are minimums; most businesses carry substantially more, and a $1,000,000 combined single limit is often required by client contracts.
Can I use my personal auto policy for business driving?
Sometimes for incidental use, often not. Personal policies exclude or limit business use, and contractors carrying tools and materials are frequently denied. If the vehicle is business-titled, employees drive it, or it is used for deliveries, you need a commercial policy.
What is hired and non-owned auto coverage?
It covers your business's liability when an employee drives a vehicle the business does not own — their own car, a rental, a borrowed vehicle — on business. Businesses with no company vehicles still need it, and it is inexpensive to add.
Does commercial auto cover my tools in the van?
No. The auto policy covers the vehicle and your liability. Tools and equipment need inland marine or a contractor's equipment policy — a common and expensive gap after a van break-in.
Do I need commercial auto if I drive for Uber or Lyft?
Often a rideshare endorsement on your personal policy is enough for part-time driving. Full-time drivers and multi-vehicle operations usually do better on a commercial policy. See our rideshare insurance guide for the details.
Related pages
Commercial Insurance
Our full commercial page.
Learn more →Business Owners Policy
Property + liability + interruption.
Learn more →Rideshare Insurance
Uber, Lyft and delivery driving.
Learn more →Workers' Comp Requirements
Required once you have employees.
Learn more →This page is general information for California consumers, not legal, tax, or financial advice, and not an offer of coverage. Rates, rules, and carrier appetite change frequently — figures shown are typical ranges as of mid-2026 from public sources. Your own premium and eligibility depend on your specific situation. Confirm current requirements with the [California Department of Insurance](https://www.insurance.ca.gov/) or talk to a licensed agent. Express Financial & Insurance Services, Inc. is an independent brokerage in Santa Monica, CA — call 310-453-5736 for a no-obligation review.