What Does Commercial Auto Insurance Cover in New York?

Posted on March 28, 2026

What Does Commercial Auto Insurance Cover in New York?

Updated March 2026 | Target: what does commercial auto insurance cover New York

If your business uses vehicles—whether delivery trucks, service vans, or company cars—you need commercial auto insurance. But what exactly does it cover?

This guide explains the coverages included in a typical commercial auto policy for New York businesses.

Core Coverages

1. Liability Coverage (Required in NY)

What it pays for:

  • Bodily injury you cause to others
  • Property damage you cause to others’ property
  • Legal defense if you’re sued

NY Minimum Requirements:

  • $25,000 bodily injury per person
  • $50,000 bodily injury per accident
  • $10,000 property damage per accident

Recommended: Most businesses should carry $100,000/$300,000/$100,000 or higher

2. Collision Coverage

What it pays for:

  • Damage to your vehicle from an accident
  • Regardless of who’s at fault

What’s NOT covered:

  • Mechanical breakdown
  • Normal wear and tear
  • Theft (see comprehensive)

Deductible: You pay the deductible before insurance kicks in

3. Comprehensive Coverage

What it pays for:

  • Theft
  • Vandalism
  • Weather damage (hail, flood, wind)
  • Fire
  • Animal strikes
  • Glass breakage

What’s NOT covered:

  • Collision damage
  • Mechanical breakdown

Additional Coverages

4. Uninsured/Underinsured Motorist (UM/UIM)

What it pays for:

  • Injuries caused by driver with no insurance
  • Injuries caused by driver with insufficient insurance

Why you need it:

  • Many NY drivers carry minimal coverage
  • Protects you when hit by irresponsible drivers

5. Medical Payments (MedPay)

What it pays for:

  • Medical bills for you and passengers
  • Regardless of who’s at fault

Typical limits: $1,000 - $10,000

6. Hired Auto Coverage

What it pays for:

  • Vehicles you rent or lease for business use
  • Temporary coverage for rental vehicles

Important if: You rent trucks or vans occasionally

7. Non-Owned Auto Coverage

What it pays for:

  • Liability when employees use personal vehicles for business
  • Covers you, not the employee

Important if: Employees use personal cars for deliveries, client visits

8. Rental Reimbursement

What it pays for:

  • Rental vehicle while your insured vehicle is being repaired
  • Usually limited to 30 days
  • Daily limit typically $30-50

9. Towing Coverage

What it pays for:

  • Towing when your vehicle breaks down
  • Usually includes labor at the scene

10. Gap Insurance

What it pays for:

  • Difference between actual cash value and loan balance
  • If vehicle is totaled and you owe more than it’s worth

What Commercial Auto Does NOT Cover

Not CoveredAlternative
Personal use of business vehicleNot covered
Intentional damageN/A
RacingNot covered
Normal wear and tearMaintenance
Mechanical breakdownEquipment breakdown coverage
Loading/unloading injuriesOften covered by GL

Coverage Limits Explained

Per-Occurrence Limit

The most your insurer will pay for a single accident:

  • Typical: $100,000, $250,000, $500,000, $1,000,000

Aggregate Limit

The most your insurer will pay in a policy period:

  • Usually equal to per-occurrence limit
  • Resets each year

Split Limits (NY Standard)

Written as three numbers:

  • $100,000/$300,000/$100,000
  • $100K per person / $300K per accident / $100K property damage

What Affects Your Coverage Options

Vehicle Type

  • Passenger vehicles
  • Light trucks
  • Box trucks
  • Semi-trucks
  • Trailers

Business Use

  • Delivery
  • Service calls
  • transporting employees
  • Hauling materials

Driving Records

  • Employee driving records
  • Claims history
  • Years of experience

How Much Coverage Do You Need?

Minimum (NY Required)

  • $25,000/$50,000/$10,000
  • Only covers basics
  • $100,000/$300,000/$100,000
  • Adequate for most situations

For Larger Operations or High Risk

  • $250,000/$500,000/$250,000 or higher
  • More protection for bigger exposures

Real-World Examples

Example 1: At-Fault Accident

Your delivery van hits a car, causing $60,000 in damage and injuring the driver.

  • Liability coverage pays: $60,000 property damage + medical bills
  • Your cost: Your deductible (if you have collision)

Example 2: Hit by Uninsured Driver

An uninsured driver runs a red light and hits your work truck.

  • UM/UIM coverage pays: Your medical bills and vehicle damage
  • Without UM: You pay out of pocket

Example 3: Vehicle Stolen

Your service van is stolen from a job site.

  • Comprehensive pays: Actual cash value of van minus deductible

FAQ: Commercial Auto Coverage

Q: Can I use my personal auto policy for my business van? A: No. Personal auto policies exclude business use. You need commercial auto insurance.

Q: Do I need commercial auto if I only use my car occasionally for business? A: Yes. Even occasional business use typically requires commercial coverage.

Q: What if an employee uses their personal car for work? A: You need non-owned auto coverage. The employee’s personal insurance is primary, but yours provides excess coverage.

Q: Does commercial auto cover passengers? A: Yes, with medical payments coverage. It pays for passenger medical bills.

Q: Can I get coverage for a rental truck? A: Yes. Hired auto coverage extends your policy to rental vehicles.

Get Help

Understanding commercial auto coverage is important. PCFG Insurance Services helps New York businesses:

  • Find the right coverage limits
  • Compare quotes from multiple carriers
  • Understand your policy
  • Manage costs

Contact us for a free commercial auto insurance review.

Disclaimer: This guide is for informational purposes only.