Commercial Auto Insurance in California
If your business owns, leases, or operates vehicles — even occasionally — you need commercial auto insurance. Personal auto policies do not cover accidents that occur during business use, leaving your company exposed to potentially unlimited liability.
Wellington Partners Insurance Services provides commercial auto coverage for:
• Contractors and trades (plumbers, electricians, HVAC, roofers)
• Delivery and courier services
• Landscaping and janitorial fleets
• Real estate agents and mobile professionals
• Trucking and freight operations
• Any business where employees drive on company time
As of January 1, 2025, California increased its minimum auto liability limits under Senate Bill 1107 (SB-1107). All commercial vehicles must now carry at least:
• $30,000 bodily injury per person (up from $15,000)
• $60,000 bodily injury per accident (up from $30,000)
• $15,000 property damage per accident (up from $5,000)
These minimums apply to every commercial vehicle in your fleet. Most businesses should carry limits well above these minimums. Contact us to find out what limits are right for your operation.
Commercial Auto Insurance in California
If your business owns, leases, or operates vehicles — even occasionally — you need commercial auto insurance. Personal auto policies do not cover accidents that occur during business use.
As of January 1, 2025 (SB-1107), California’s new commercial auto minimums are:
• $30,000 bodily injury per person
• $60,000 bodily injury per accident
• $15,000 property damage per accident
Most businesses should carry limits well above these minimums. Call us at (818) 492-4355 to find the right coverage for your operation.
What Does Commercial Auto Insurance Cover?
A standard commercial auto policy provides two core types of protection:
Liability Coverage
Pays for bodily injury and property damage to others when your driver is at fault. This includes legal defense costs and any judgments or settlements against your business.
Physical Damage Coverage
Protects your own vehicles from damage caused by collision, theft, vandalism, fire, weather, and other covered perils. This is split into:
• Collision — damage from hitting another vehicle or object
• Comprehensive — damage from non-collision events (theft, hail, flood, fire)
Additional coverages available:
• Medical Payments (MedPay) — covers injuries to your driver and passengers regardless of fault
• Uninsured/Underinsured Motorist (UM/UIM) — protects your business when the at-fault driver has no insurance or insufficient coverage
• Towing and Roadside Assistance
• Rental Reimbursement
• Trailer Interchange Coverage
• Drive Other Car Coverage for executives or owners
Commercial Auto Coverage Symbols Explained
Every commercial auto policy has a declarations page that lists numbered symbols next to each coverage. These symbols — called Covered Auto Designation Symbols — define exactly which vehicles are covered. Understanding them is critical to making sure you don’t have gaps.
Symbol 1 — Any Auto
The broadest possible coverage. Covers any auto your business owns, hires, rents, borrows, or that an employee uses for business. If Symbol 1 appears next to Liability, you have the widest net of protection. Many insurers are reluctant to offer this symbol.
Symbol 2 — Owned Autos Only
Covers any auto currently owned by your business, including vehicles acquired after the policy starts. Does not cover hired or non-owned vehicles.
Symbol 3 — Owned Private Passenger Autos Only
Covers only privately owned passenger-type vehicles (cars, SUVs). Does not include trucks or specialty vehicles.
Symbol 4 — Owned Autos Other Than Private Passenger
Covers trucks, vans, and commercial vehicles owned by the business. Excludes passenger cars.
Symbol 5 — Owned Autos Subject to No-Fault Law
Applies only in states with no-fault insurance laws. Not commonly used in California since California is not a no-fault state.
Symbol 6 — Owned Autos Subject to Compulsory Uninsured Motorist Law
Applies to owned autos in states requiring UM coverage. Used primarily for uninsured motorist coverage designations.
Symbol 7 — Specifically Described Autos
Covers only the vehicles listed by VIN on the policy. Commonly used for physical damage coverage. Important: if you acquire a new vehicle, you must add it to the policy — otherwise it is not covered. Most policies give you 30 days to report new autos.
Symbol 8 — Hired Autos Only
Covers vehicles your business leases, rents, hires, or borrows — but does NOT include vehicles borrowed from your own employees, partners, or LLC members. If you rent a van for a job site, Symbol 8 covers it.
Symbol 9 — Non-Owned Autos Only
Covers vehicles your employees, partners, or members own personally but use for business purposes — such as an employee driving their personal car to a client meeting. This does not overlap with Symbol 8. Together, Symbols 8 and 9 protect your business from liability arising from vehicles it doesn’t own.
Symbol 19 — Mobile Equipment Subject to Compulsory Insurance
Covers specialized mobile equipment (forklifts, construction machinery) required to carry motor vehicle insurance when operated on public roads.
Commercial Auto Coverage Symbols Explained
Coverage symbols on your declarations page define exactly which vehicles are protected:
• Symbol 1 — Any Auto (broadest coverage)
• Symbol 2 — All Owned Autos
• Symbol 3 — Owned Private Passenger Autos Only
• Symbol 4 — Owned Commercial Autos Only
• Symbol 5 — Owned Autos in No-Fault States
• Symbol 6 — Owned Autos Subject to UM Law
• Symbol 7 — Specifically Listed Autos Only
• Symbol 8 — Hired Autos (rented/leased by business)
• Symbol 9 — Non-Owned Autos (employee personal vehicles used for work)
• Symbol 19 — Mobile Equipment on Public Roads
Most California businesses should carry at minimum Symbols 7, 8, and 9 — or Symbol 1 for the broadest protection. Call us to review your declarations page.
Hired & Non-Owned Auto Insurance (HNOA)
One of the most overlooked gaps in commercial auto coverage is Hired and Non-Owned Auto (HNOA) liability. Many businesses assume they’re covered when employees drive personal vehicles for work — they’re not, unless HNOA coverage is specifically added.
What is Hired Auto Coverage (Symbol 8)?
Hired auto coverage protects your business when you or your employees rent, lease, or borrow a vehicle for business use. Examples include:
• Renting a cargo van for a delivery run
• Leasing a vehicle for a temporary project
• Borrowing a vehicle from a vendor for a job
Important limitation: Symbol 8 does NOT cover vehicles borrowed from your own employees, partners, or LLC members. Those fall under Symbol 9.
What is Non-Owned Auto Coverage (Symbol 9)?
Non-owned auto coverage protects your business when employees use their personal vehicles for work-related tasks. Examples include:
• An employee driving their own car to a client meeting
• A salesperson using their personal vehicle to make deliveries
• A staff member running a business errand in their own car
Why does this matter? If an employee causes an accident while on a business errand in their personal car, your business can be named in the lawsuit — even though you don’t own the vehicle. Their personal auto policy is primary, but it may not have high enough limits. HNOA steps in to protect your company from that excess liability.
Who needs HNOA?
Any business where employees occasionally use vehicles you don’t own — even just one person driving their own car to the post office on company time — has non-owned auto exposure. This is especially common for:
• Small businesses without a company fleet
• Professional services firms
• Real estate agencies
• Staffing companies
• Any business requiring SB-1107 compliance on hired vehicles
Garage Insurance for Auto Dealers & Repair Shops
Auto dealers, repair shops, and service garages have unique insurance needs that go beyond a standard commercial auto policy.
A Garage Insurance Policy combines:
• Garage Liability — protects against bodily injury and property damage claims arising from your garage operations and premises
• Garagekeepers Coverage — covers physical damage to customers’ vehicles while in your care, custody, or control (during repair, storage, or valet)
• Dealer Open Lot Coverage — protects your inventory of vehicles against fire, theft, weather, and other perils
Without Garagekeepers coverage, if a customer’s car is damaged while parked on your lot or in your shop, the cost comes out of your pocket. This is one of the most critical and commonly missed coverages for auto-related businesses.
Wellington Partners works with auto dealers, body shops, tire shops, and fleet maintenance facilities throughout California to build customized Garage policies.
Garage Insurance for Auto Dealers & Repair Shops
Auto dealers, repair shops, and service garages need a Garage Insurance Policy that combines Garage Liability, Garagekeepers Coverage (for customers’ vehicles in your care), and Dealer Open Lot Coverage. Wellington Partners builds customized Garage policies for auto-related businesses throughout California.
What Affects Your Commercial Auto Premium?
Commercial auto insurance rates in California are determined by several key factors:
• Type of vehicle — Class, weight, and use (passenger, delivery, heavy truck)
• Business use and radius — Local operations vs. long-haul interstate routes
• Driver history — MVR records, accidents, violations, and years of experience
• Number of vehicles — Fleet size and whether vehicles are owned or leased
• Garaging location — Where vehicles are stored overnight (zip code, urban vs. rural)
• Annual mileage — Higher mileage generally means higher risk
• Coverage selections — Limits, deductibles, and optional endorsements
• Claims history — Prior losses significantly affect rates
• Industry type — Some industries (roofing, trucking, construction) face higher base rates
California commercial auto rates have increased significantly in 2025 following the SB-1107 minimum limit increases. It’s more important than ever to shop multiple carriers and work with an independent broker who can find you the best rate across the market.
Wellington Partners has access to dozens of admitted and non-admitted carriers specializing in California commercial auto risks — including hard-to-place accounts.
Get a Commercial Auto Quote from Wellington Partners
Whether you have one vehicle or a fleet of fifty, Wellington Partners Insurance Services can help you build a commercial auto program that meets California’s 2025 requirements and protects your business against real-world risks.
We specialize in:
• Commercial fleets of all sizes
• Contractor and trade vehicles
• Hired and non-owned auto (HNOA) coverage
• Hard-to-place commercial auto risks
• Garage and dealer policies
• Heavy truck and motor carrier programs
Call us today at (818) 492-4355 or submit an online quote request. One of our licensed California commercial auto specialists will review your current coverage and identify any gaps — at no cost to you.
Get a Commercial Auto Quote from Wellington Partners
Wellington Partners specializes in California commercial auto for fleets of all sizes, contractors, HNOA, garage policies, and hard-to-place risks. Call (818) 492-4355 or request a quote online — our licensed specialists will review your coverage at no cost.
Call us for a quote