| Feature | Individually Rated Commercial Auto (IRCA) | Commercial Fleet Insurance |
|---|---|---|
| Vehicle Count | 1 to 4 commercial vehicles | 5 or more self-powered commercial vehicles with liability coverage |
| How it is Rated | Rated individually based on the assigned driver's record | Rated wholistically based on the overall fleet's loss experience |
| Driver Flexibility | Drivers must be explicitly named on the policy | Blanket coverage for authorized employees |
| Ideal For | Independent contractors, tradespeople, and small retail businesses | Delivery logistics, construction crews, and transportation companies |
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What is commercial auto insurance?
Commercial auto insurance offers liability and physical damage coverage for vehicles owned, leased, or operated as part of your business activities.
Whether your business relies on a single service vehicle or manages a fleet of commercial automobiles, your coverage can help protect your business from financial losses such as third-party lawsuits and claims, vehicle damage, theft, or other covered repair or replacement costs.
Commercial Auto vs. Fleet Insurance: Which do you need?
What additional commercial auto coverages are available?
Standard personal auto policies exclude business use. A commercial auto policy helps protect your business with optional coverages, including:
Frequently Asked Questions
No. Personal auto insurance excludes business use. If you use your vehicle for work activities — such as delivering goods, transporting tools, or driving clients — you need a commercial auto policy or endorsement to be covered in the event of a claim.
Commercial auto insurance covers the vehicle itself. Tools, equipment, and cargo are not typically included and may require separate coverage, such as Commercial Property Insurance or a Tools and Equipment Floater.
Not automatically. If employees use their personal vehicles for business purposes, your policy should include General Liability coverage. This helps protect your business if an employee is involved in an accident while performing work-related tasks.
Yes. Standard commercial auto and general liability policies typically exclude damage to customer vehicles in your care. A Garage policy helps protect those vehicles from risks such as fire, theft, or accident while they are in your care, custody, and control.
Reviewed by Economical Insurance Commercial Underwriting Team | Last Updated: August 2026