If you run a business in Minnesota and use vehicles, you’ll need commercial auto insurance to keep your company safe from financial headaches. Commercial auto insurance steps in if your business vehicle gets into an accident or faces damage from other incidents.
This isn’t like your regular car insurance. It comes with higher liability limits and covers all sorts of vehicles—think trucks, vans, pickups, maybe even something more unique.
Getting the right coverage means figuring out what risks your vehicles face and how much insurance you really need. The policy should actually fit your business—are your vehicles owned, rented, or just used occasionally?
It’s worth hunting for a provider that offers solid options and maybe even a few discounts. No one likes overpaying for insurance.
Key Takeaways
- Commercial auto insurance shields your business vehicles and helps limit financial risk.
- Coverage should match the vehicles and how you actually use them.
- Comparing providers is the best way to find a policy that makes sense for your budget.
Understanding Commercial Auto Insurance in Minnesota
You’ll need insurance that protects vehicles used for work. This includes coverage for damage, liability, and sometimes even rentals.
Minnesota has its own requirements and types of coverage you’ll want to know about to stay legal and protected.
What Is Commercial Auto Insurance?
Commercial auto insurance is for vehicles mainly used for business stuff. Cars, trucks, vans, and more—if they’re part of the job, they’re covered.
The policy pays for damage from accidents, theft, or even vandalism. It’s not just about fixing your own car, though.
It also covers liability if you or your employees cause injury or property damage while driving. Usually, commercial policies offer higher liability limits than personal car insurance.
Some policies even cover rented or non-owned vehicles your business uses. Handy if you’re not always using the same set of wheels.
How It Differs From Personal Auto Insurance
Commercial auto insurance is built for business use, not personal errands. Personal auto policies often don’t cover you if you’re using your car for work or carrying goods and passengers for business.
You’ll usually see higher liability limits—sometimes up to $1 million. There’s also the option to cover multiple vehicles under one policy, often called fleet insurance.
If there’s a lawsuit or big bill after a business-related accident, commercial insurance is what stands between you and serious trouble. Personal insurance just won’t cut it here.
State-Specific Requirements in Minnesota
Minnesota law says you have to carry at least the minimum commercial auto liability limits. These are higher than what’s required for personal cars.
The state’s minimums look like this:
| Coverage Type | Minimum Limit |
|---|---|
| Bodily Injury | $40,000 per person |
| Bodily Injury | $80,000 per accident |
| Property Damage | $40,000 |
Depending on your business or what your vehicles do, you might need even more coverage. When you register business vehicles, Minnesota wants proof of insurance.
Skip these requirements and you could face fines or even lose your registration. It’s smart to get advice and quotes that actually fit your business.
Coverage Options for Minnesota Businesses
Your business vehicles face all kinds of risks—accidents, damage, even uninsured drivers. If you know what each coverage does, picking the right policy gets a lot easier.
Liability Coverage
Liability coverage is a must for any commercial vehicle in Minnesota. It pays for injuries or property damage you cause to others in an accident.
This covers things like medical bills, repair costs, and legal fees if someone sues you. Minnesota’s minimums are $30,000 per person and $60,000 per accident for injuries, plus $10,000 for property damage.
A lot of businesses go for higher limits—$1 million isn’t uncommon. This way, you’re better protected if something big goes wrong.
Liability applies to both business-owned and rented vehicles. Usually, employees are covered if they’re driving with your permission.
It’s worth checking that your limits actually fit your business’s risk level.
Physical Damage Coverage
Physical damage coverage keeps your vehicles protected from things like collisions, theft, vandalism, or weather. It’s usually split into collision and comprehensive.
Collision pays to fix or replace your vehicle after an accident, no matter who was at fault. Comprehensive handles damage from things like fire, floods, or even hitting a deer.
This isn’t required, but if your business relies on its vehicles, skipping it seems risky. Your deductible decides how much you pay out of pocket—find a balance that works for your budget.
Uninsured and Underinsured Motorist Coverage
This coverage steps in if another driver causes an accident and doesn’t have insurance, or not enough of it. It pays for your medical bills and repairs when the other guy can’t.
Minnesota requires uninsured motorist coverage, but you can bump up the limits with your commercial policy. If your vehicles operate where uninsured drivers are common, this is a must.
You can also add underinsured motorist coverage. It fills the gap when the other driver’s policy just isn’t enough.
Optional Endorsements
You can tweak your policy with extra add-ons called endorsements. Some popular ones:
- Rental reimbursement: Pays for a temporary vehicle if yours is in the shop.
- Non-owned vehicle coverage: Covers vehicles your employees use for work but your company doesn’t own.
- Medical payments: Takes care of medical bills for you and passengers, no matter who’s at fault.
- Roadside assistance: Helps with breakdowns, towing, and flat tires.
Endorsements add more protection, but they’ll bump up your premium. Pick the ones that actually make sense for how your business uses its vehicles.
Factors Influencing Commercial Auto Insurance Costs
Several things decide what you’ll pay for commercial auto insurance. The vehicles you insure, how you use them, and your employees’ driving records all play a part.
Insurers look at these details to figure out their risk—and your rate.
Types of Vehicles Insured
The kind of vehicle matters a lot. Insuring a big truck usually costs more than a small car since trucks haul heavier loads and face more risks.
Vehicles used for deliveries or specific jobs can also mean higher premiums. If your business uses older vehicles, you might pay less, but that’s not always the case.
Newer vehicles are often safer, but repairs can be pricey. Even SUVs and vans have different rates depending on size and use.
Business Industry and Usage
What your business does with its vehicles changes your rates. If you stick to local routes in a city like Bloomington, insurance might cost less than if you’re driving all over the state.
Transporting hazardous materials or passengers? That’ll raise your premium. How often and how far you drive, plus what you’re hauling, all factor in.
If your vehicles are out on the road a lot or in risky conditions, expect to pay more.
Employee Driving Records
Your employees’ driving histories matter—sometimes more than you’d expect. If your drivers have accidents or tickets, your rates will go up.
It helps to keep tabs on your drivers’ records and encourage safe driving. Some businesses save money by hiring drivers with clean records or offering safety training.
The better your drivers, the better your rates. Simple as that.
Selecting a Commercial Auto Insurance Provider in Minnesota
Picking the right insurance provider isn’t just about price. You want a company with a good reputation, solid policy options, and a real understanding of Minnesota’s rules.
It doesn’t hurt to find ways to save on premiums, either.
Comparing Insurance Companies
Check out companies with strong financial ratings and positive customer reviews. In Minnesota, you’ll see names like Liberty Mutual, Nationwide, Travelers, Progressive, and EMC.
Compare what each insurer actually offers. Do they cover rentals? Offer higher liability limits? Any discounts for multiple vehicles or safe driving?
Get quotes from a few companies. Pay attention to the details—coverage limits, exclusions, and any extras they throw in.
Finding the right fit means looking past just the price tag.
Tips for Lowering Premiums
There are a few tricks to cutting your costs. Raising your deductible can lower your upfront premium, but only do this if you can handle the bigger out-of-pocket expense later.
Keep your drivers’ records clean. Some insurers give discounts for safe driving programs or if you install devices that track driving habits.
Bundling policies—like business and commercial auto—can also save you money. And don’t forget to ask about discounts for vehicles with safety features or low annual mileage. Sometimes, it’s the little things that help most.
Ensuring Compliance With Minnesota Law
Minnesota law says all commercial vehicles have to carry liability insurance. The minimum limits are set by the state.
Most businesses end up needing at least $1 million in liability coverage. That’s what it usually takes to really protect yourself out there.
Double-check that your insurance covers both bodily injury and property damage. If you ever rent or borrow vehicles, you’ll want to confirm your policy doesn’t leave you hanging.
Keep proof of insurance in every vehicle. You never know when you’ll need it during a traffic stop or after an accident.