Many IT companies – be it a large-device maker transporting goods by truck or the local service shop running around with a van – use vehicles to get the job done. Those vehicles need to be insured to operate legally and safely.
In almost every state, tech companies that own or lease vehicles must carry liability auto insurance, which covers damage and injuries an owner or staffer causes in an accident while driving a work vehicle.
“Know what and how much coverage is required by law. Just as is the case for personal auto, there are often state or even federal requirements for minimum liability limits, which can vary depending on how the company uses their vehicles,” says Bob Passmore, department vice president of personal lines at the American Property Casualty Insurance Association (APCIA), a national insurance trade association.
“For example, if they are an interstate trucking company, there are federal minimums that apply,” he says. “The business may determine that these minimum limits provide adequate protection for the business’s assets, or it may wish to purchase additional coverage.”
In addition to liability insurance, IT companies can purchase collision and comprehensive insurance. Collision covers an accident with another vehicle or object. Comprehensive covers non-collision events, like theft and vandalism.
In this report, we’ll talk about the different policies available to IT businesses, how insurance companies calculate risk, how much policies cost, how IT business owners can reduce their rates and more.
CarInsurance.com Insights
- The average cost of business vehicle insurance for tech companies is $2,375 per year, or about $198 per month.
- IT companies that own or operate cars, trucks and vans for their business need commercial auto insurance.
- Rates vary by business, company size, the type and number of vehicles operated, the coverage type and amount and other factors.
How much is commercial auto insurance for IT businesses?
The average cost for IT company vehicle insurance is $2,375 per year, or about $198 per month, according to Insureon, a broker that specializes in commercial insurance.
But what a commercial business pays for liability, comprehensive, and collision insurance varies depending on the number and types of vehicles used, employee driving history, where the vehicles operate, the coverage amounts and the insurer used. For instance:
- Next Insurance. Twenty-three percent of business owners pay between $100 and $200 per month, while 37% pay over $200 per month for commercial auto coverage. Twenty percent pay $100 or less per month.
- Progressive. The average commercial auto insurance cost per month is $270.
- The Hartford. Small business owners pay an average of $574 per month.
How much commercial auto insurance coverage do you need?
Each state sets a minimum auto liability coverage requirement. Most common are limits of 25/50/25, meaning $25,000 for bodily injury per person, $50,000 for bodily injury per incident and $25,000 for property damage per incident.
You need at least your state’s minimum coverage.
However, the Federal Motor Carrier Safety Administration (FMCSA) requires trucks moving freight across state lines to have liability coverage of between $750,000 and $5,000,000, depending on the commodities they carry.
However, these minimum coverage amounts are often inadequate, and experts typically recommend higher limits for better financial protection. The Insurance Information Institute (Triple-I), an industry research and education organization, says businesses should have a $1 million commercial auto insurance limit, with $500,000 as the absolute minimum.
Granted, the higher your coverage limit, the more expensive your rate will be.
However, according to Triple-I, while you might think a higher limit will add to your costs, it doesn’t add much to the price, especially considering the additional protection it provides.
Additionally, liability-only commercial auto insurance doesn’t protect your work vehicles. Many small businesses can benefit from a full coverage policy that includes collision and comprehensive insurance, which provides physical damage coverage.
Top commercial auto insurers for IT professionals
Most commercial insurance companies sell tech business auto insurance, including:
- AmTrust
- Auto-Owners
- biBerk
- The Hartford
- Next
- Progressive
- Thimble
- State Farm
Insurance.com, which is owned by the same company that operates CarInsurance.com, also has a list of the top 10 commercial auto insurance companies.
How are commercial auto insurance rates determined for IT businesses?
When you apply for a commercial auto insurance policy, the insurance company uses different criteria to determine the risk of insuring your IT business. The riskier your business is to insure, the higher your premium will be.
In fact, Insureon says your premium quote is essentially a risk assessment, with the insurer making a determination about how much risk it’s willing to take on and at what price.
Insure lays out the factors insurance companies use to figure out this risk, which include:
- Type of coverage. Different policies are priced accordingly. The more coverage you buy, the more you’ll pay. In addition to liability, the broker says, some businesses may add collision or comprehensive coverage to cover costly repairs, raising the premium.
- Where and how much you drive. Operating in a congested city with lots of traffic increases your chances of an accident.
- Driving record and claims history. This includes the owners and any workers who get behind the wheel. If anyone has a history of claims, collisions and speeding tickets it could raise the premium.
- Vehicles used and what they’re used for. Trucks will usually cost more than cars, and insurance for a van transporting expensive electronics will cost more than a car used for business errands.
- Amount of coverage and deductible amounts. You’ll pay more for full coverage than for state-minimum insurance, and the higher your deductible, the lower your monthly premium. The deductible is the amount you pay out of pocket before your insurance kicks in. If you go with a high deductible, make sure you can comfortably meet the deductible should you need to file a claim.
How to get accurate commercial auto insurance quotes for IT businesses
When shopping for commercial auto insurance, experts say you should ask at least three insurers for a quote to determine the most affordable commercial auto insurance for your business.
Here are some tips for getting the most accurate commercial auto insurance quotes for an IT business:
- Pull together the information insurance companies will ask for. Gather the driving information of all the people who will be using your vehicles. The insurer will ask for names, addresses and driver’s license numbers when you get a quote. Some insurers might also ask for their Social Security numbers.
- Determine what coverages you need. You may just want to get liability insurance. But if you want physical damage coverage for your work vehicles, you should consider a full coverage policy with collision and comprehensive insurance.
- Choose your limits. If your business operates in a congested city with lots of street traffic or your vehicles make long trips, you’ll want more than minimum coverage.
- Select a deductible. As mentioned earlier, choosing a high deductible will lower your monthly premium. But be sure to pick a deductible you can comfortably afford in case of a claim.
How IT businesses can save on commercial auto insurance
There are any number of ways to save on insurance, including:
- Discounts: Many insurers offer discounts for bundling, paying your bill up front or for safe driving.
- Bundling: Insurers will offer you a break if you buy your commercial auto, general liability, commercial property and other insurance from one company.
- Pay in full: Most insurers will give you a discount if you pay your annual premium upfront and in full rather than each month.
- Sign up for a telematics program: These programs use GPS and other technologies to track driving behaviors and trip patterns.
- Choose a higher deductible
- Shop around
“There are all kinds of safety equipment and devices that can help companies manage their auto insurance risk. For example, tracking driving behaviors via telematics is much more common in commercial vehicles than in personal vehicles,” the APCIA’s Passmore says
Passmore also recommends that businesses have a comprehensive safety program that is consistently monitored and enforced.
“As mentioned, many insurers provide these kinds of services to their policyholders,” he says. “A company can also save money on insurance premiums by selecting a higher deductible, but that means the company will pay more out-of-pocket if there is a claim. The company is in the best position to determine the amount of deductible that is best suited for the company.”
Sources
- Insurance Information Institute. “Business Vehicle Insurance” Accessed June 2025.
- FMCSA. “Federal Motor Carrier Safety Administration” Accessed June 2025.
- Indeed. “What Is an IT Consultant?” Accessed June 2025.
Frequently asked questions
Does your industry affect the cost of commercial auto insurance?
Companies in different businesses pay different rates because they each pose different risks to insurance companies. High-risk businesses, such as trucking companies, usually pay more than professional services firms.
Do IT consultants need commercial auto insurance?
Yes, if they own and operate vehicles for their business. Job site Indeed classifies an IT consultant as someone “who typically works with organizations or institutions that use technology systems for their business operations.”
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