There are more than 2.8 million retail businesses in the U.S., according to international research firm IBISWorld, and many of them rely on vehicles for their day-to-day operations. For these businesses, commercial vehicle insurance is a must to comply with state law and to protect their employees and operations from financial calamity.
In most every state, retailers that own or lease vehicles must carry commercial liability auto insurance. This type of insurance covers your financial responsibilities if you or one of your employees causes an accident while driving a work vehicle and includes bodily injury and property damage liability.
Retail businesses can supplement that coverage with comprehensive and collision insurance. Comprehensive insurance covers non-collision events, like fire, theft, natural disasters, vandalism, broken glass and animal damage. Collision insurance covers accidents and collisions with another vehicle or object.
On average, a retail business can expect to pay about $171 per month for commercial vehicle insurance, according to small business insurance agency Insureon.
However, what a retail business pays for liability, comprehensive, and collision insurance depends on several factors, such as the age of the drivers and their driving records, the types of vehicles you own, what those vehicle are used for, the coverage you choose and other criteria, says Kristin Thelen, director of account management for Insureon.
In this report, we’ll share the average cost of commercial auto insurance for retail businesses and explain how insurance companies calculate premiums. We’ll also share some tips for saving money on your commercial car insurance policy.
CarInsurance.com Insights
- The average cost of commercial vehicle insurance for a retail business is $2,054 per year, or about $171 per month.
- The cost of commercial vehicle insurance for a retail business depends on industry, location, fleet size, claim history, policy limits and deductible, among other factors.
- Commercial auto insurance is a legal requirement in most states for retail businesses that own or lease vehicles or trucks.
- Most commercial insurance companies, including Liberty Mutual, Progressive, State Farm and Travelers, offer vehicle insurance for retail businesses.
How much is commercial auto insurance for retail businesses?
The average cost of commercial vehicle insurance for retail businesses, as mentioned earlier, is $171 a month, or $2,054 per year, according to Insureon. However, the actual amount your business will pay depends on several rating criteria, including the carrier you choose. For example, Next Insurance estimates that a retail business will pay $159 monthly for coverage.
Below are average monthly commercial vehicle insurance costs for various retail businesses, based on Insureon estimates:
- E-commerce/online: $171
- Florist: $167
- Furniture stores: $202
- Grocery stores: $171
Types of retail businesses that may need commercial auto insurance
The world of retail is incredibly diverse, and there are many kinds of vendors that may rely on vehicles to conduct business, whether that means visiting clients, delivering goods, or picking up crucial supplies. Below are just some types of retail establishments that may need commercial auto insurance coverage:
- Antique stores
- Appliance stores
- Auto parts stores
- Beer, liquor, and wine stores
- Bridal shops
- Carpet stores
- Computer and electronics stores
- Consignment and thrift stores
- Crafters and artisans
- E-commerce and online retailers
- Florists
- Furniture stores
- Grocery stores
- Hardware stores
- Home decor stores
- Office equipment and supplies stores
- Paint and wallpaper stores
- Pets and pet supplies
- Sporting goods stores
- Upholstery shops
- Vending machine operators
- Window shade, blind, and curtain stores
How are commercial auto insurance rates determined for retail businesses?
Premiums can vary tremendously depending on the type of retail business you have. Insurers use different criteria to determine the risk of insuring your retail business. The riskier your business is to insure, the higher your insurance premium will be.
Where your retail business is located is one of the biggest factors affecting commercial auto premiums for retail businesses. For example, if your business operates in a neighborhood with high crime, you can expect to pay a higher insurance premium.
Vehicle usage is another thing that determines your business auto insurance cost. If your retail business has multiple vehicles that are driven long distances, you can expect to pay more than a retailer that owns one van for occasional in-town deliveries. The types of vehicles you own can also impact your premium.
Other factors include:
- Number of vehicles your business uses
- Claim history
- Driving records for yourself and your workers
- Endorsements and policy limits
Do policy limits affect commercial auto insurance premiums?
Commercial auto insurance policy limits have a direct effect on premiums. The higher your coverage limit, the more expensive your rate will be. When you’re purchasing commercial auto insurance for your retail business, it’s important to choose the right amount of coverage.
Nearly every state requires small businesses to carry a minimum amount of commercial auto insurance. Most states require liability insurance, but others have additional requirements, like uninsured/underinsured motorist insurance and personal injury protection (PIP).
If you choose a full coverage policy, your commercial auto insurance will also cover the cost of repairing a business vehicle or replacing one that gets totaled in a covered loss. Full coverage also includes comprehensive insurance, which covers non-collision damage, such as theft, vandalism, hail, falling objects and floods.
While a state minimum coverage policy is the cheapest commercial auto insurance you can legally have, paying a higher premium for a full coverage policy will provide much more financial protection in case of an accident or other covered loss.
Many insurance companies recommend a business coverage limit of $1 million, according to the Insurance Information Institute (Triple-I), an industry trade group. While you might think a higher limit will add to your costs, Triple-I says it doesn’t add much to the price, especially considering the additional protection it provides.
How retail businesses can shop for commercial auto insurance
If you’re shopping for commercial auto insurance, it’s a good idea to get multiple quotes for your retail business. Comparison shopping will help you find the most affordable commercial auto insurance for your industry, fleet size and other factors.
Here are some tips for getting the most accurate commercial auto insurance quotes:
- Collect driver information. Gather information for all the drivers you want on the policy. You’ll need to submit their names, addresses and driver’s license numbers when you get a quote. Some insurers might also ask for their Social Security numbers.
- Determine your coverage needs. As mentioned above, you can select liability, collision, comprehensive or other coverage. Many carriers also offer endorsements, such as roadside assistance.
- Choose your policy limits. If your business operates in a high-risk area, such as in a city with congested streets, you might need more coverage than a business that’s out in the suburbs or in a rural area.
- Select a deductible. Choosing a higher deductible will result in lower monthly payments, while a lower deductible will result in higher rates.
How retail businesses can save on commercial auto insurance
Commercial auto insurance premiums are different for every retail business. Premiums can vary depending on your location, fleet size, employee driving records, claim history and other factors. However, there are ways to save on business vehicle insurance.
Here are some ways that you can reduce your commercial auto insurance costs:
- Ask about discounts. When you purchase an insurance policy, ask an agent about the discounts available and how you can qualify. This can include bundling discounts and pay in full discounts – if you pay your annual premium upfront and in full, rather than in monthly installments, most insurance companies will give you a discount
- Enroll in a telematics offering. Many insurance companies offer a telematics-based savings program, in which GPS or other technologies track driving behaviors and trip patterns. If your employees drive safely, you’ll get a lower rate.
- Shop around. One of the best ways to save money on commercial auto insurance is to shop around and compare quotes from multiple companies. Comparison shopping makes it easy to see which insurer offers the lowest rate for the coverage you want.
“Shopping around is just as important for commercial insurance as personal insurance,” says Bob Passmore, department vice president of personal lines at the American Property Casualty Insurance Association, a national insurance trade association. “Many companies will use an insurance broker to help them do that, or if the company is large enough, they may have their own risk management professionals.”
Which insurance companies offer commercial auto insurance for retail?
Most commercial insurance companies sell vehicle insurance for retail businesses. Here are some companies you might consider if you’re shopping for this type of insurance:
- Liberty Mutual
- Progressive
- State Farm
- Travelers
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.
Sources
Insurance Information Institute. “Business Vehicle Insurance” Accessed June 2025.
Frequently asked questions
Does your industry affect the cost of commercial auto insurance?
Yes, the industry your business operates in impacts your commercial car insurance premium. In general, businesses in high-risk industries, like trucking and manufacturing, pay higher premiums than lower-risk industries, such as professional services. However, other factors also affect your premium, like your location, fleet size, vehicle types and policy limits.
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