Question 1

What is the difference between personal and commercial auto insurance in Alabama?

Accepted Answer

Personal auto insurance covers vehicles used for personal errands and commuting. Commercial auto insurance covers vehicles used for business purposes — deliveries, hauling equipment, transporting clients. If you use your personal vehicle for business and have a claim, your personal policy may deny it. Alabama law requires commercial coverage for any vehicle used primarily for business.

Question 2

How much does commercial auto insurance cost in Alabama?

Accepted Answer

Commercial auto insurance in Alabama typically costs $1,200 to $3,500 per vehicle per year, depending on vehicle type, driver records, coverage limits, and industry. A single pickup truck for a contractor may cost $1,500/year, while a fleet of delivery vans could average $2,500 per vehicle. We shop 50+ carriers to find the best rate for your specific situation.

Question 3

Does my personal auto policy cover me if I use my car for business?

Accepted Answer

Usually not. Most personal auto policies exclude or limit coverage for business use. If you deliver goods, transport clients, or use your vehicle as part of your job duties, you likely need a commercial auto policy or a business use endorsement. A claim denied for business use could leave you personally liable for tens of thousands of dollars.

Question 4

What does hired and non-owned auto insurance cover?

Accepted Answer

Hired and non-owned auto (HNOA) covers liability when employees use rental cars or their personal vehicles for business tasks. If an employee causes an accident while running a work errand in their own car, your business could be sued. HNOA coverage protects your business in these situations and typically costs only $200-$500/year.

Question 5

Can I add my personal vehicle to a commercial auto policy?

Accepted Answer

Yes, many business owners add their personal vehicles to their commercial policy, especially if the vehicle is used for both personal and business purposes. This can actually simplify coverage and sometimes save money compared to maintaining separate personal and commercial policies.

Protect Your Business Vehicles

What's Covered

Who Needs Commercial Auto Insurance?

Alabama Commercial Auto Rates

Ready to Protect Your Fleet?