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Commercial auto insurance in Colorado
If your business-owned vehicle is involved in an accident, commercial auto insurance will cover the cost of bills and expenses. It's required for any vehicles used solely for work purposes in Colorado.
Who needs a commercial auto insurance policy in Colorado?
Whether you're based in Denver, Aurora, or beyond, any Colorado company that uses vehicles for business purposes must insure them appropriately.
Your personal auto insurance policy covers you while driving to and from work, but not while making deliveries, picking up supplies, and other work-specific uses. A business auto policy would cover you and your personal vehicle in case you’re at fault for an accident during a work-related errand.
Any vehicles you own solely for work purposes must be covered by a commercial auto policy, whether you own a landscaping pickup truck, a food truck, or a fleet of company cars.
What if I use my personal vehicle for work?
If you’re using your own vehicle for work-specific activities, your personal auto policy wouldn’t cover you in the case of an accident. That’s why many small business owners purchase hired and non-owned auto (HNOA) insurance. This liability policy covers accidents involving personal, leased, and rented vehicles used for work purposes.
If you or an employee gets into an accident while driving a personal car for a work errand, your HNOA coverage would help pay for any claims or lawsuits against your business. However, this type of insurance will not cover damage to the vehicle used by your business.
Why is commercial auto insurance important?
Your business could be in legal and financial jeopardy without commercial auto insurance coverage. In Colorado, all vehicles are required to carry auto liability insurance.
If one of your business vehicles is at fault in an accident, you could face an expensive lawsuit or settlement. You’d likely have to pay for damage to the other vehicle or property, medical costs, lost wages, pain and suffering, plus other related costs.
Additionally, you could face severe penalties for not carrying auto insurance. Driving without insurance in Colorado is considered a class 1 misdemeanor, and could result in a minimum fine of $500, up to 40 hours of community service, as well as a suspension of license plates and/or vehicle registration.
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How does commercial vehicle insurance work in Colorado?
Colorado state law requires all vehicles to have a minimum amount of auto liability insurance coverage, whether they’re for personal or business use. Colorado's insurance requirements are:
- $25,000 bodily injury liability per person
- $50,000 bodily injury liability per accident
- $15,000 property damage liability per accident
Depending on your type of business, your insurance agency might recommend higher liability coverage limits based on the types of vehicles you own and how they’re used.
Semi-trucks, utility trailers, cargo trailers, and other vehicles with a Colorado Department of Transportation serial number will have additional liability coverage requirements, depending on the type of vehicle and how it’s used.
You can see if your business needs these additional requirements by checking your USDOT number or docket number with the Federal Motor Carrier Safety Administration.
How much does commercial car insurance cost?
Commercial auto insurance costs an average of $214 per month.
Your cost is based on a few factors, including:
- Number of vehicles
- Vehicle type and value
- Level of risk involved
- Claims history
- Employee driving records
- Policy deductible and limits
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What else does commercial auto insurance cover?
While every Colorado business owner must meet the minimum requirements for business auto insurance, this mandate only applies to liability coverage. This can protect you if one of your vehicles causes an accident, but it does not insure you against a mishap caused by someone else.
It’s worth considering these other commercial auto coverage options to make sure you’re fully protected:
- Uninsured/underinsured motorist coverage insures you against personal injuries and damage involving a company vehicle, in case whomever caused the accident is unable to cover the full cost of damages.
- Medical payments (MedPay) coverage pays for medical expenses if employees and passengers are injured in a company-owned vehicle, regardless of who is at fault.
- Collision coverage helps pay for the cost of repairing or replacing your company vehicle if it’s damaged in an accident, regardless of who was at fault.
- Comprehensive coverage pays for the costs of non-collision damages such as vandalism, theft, flood, or fire.
- Towing and labor coverage includes the cost of roadside assistance for company-owned vehicles.
- Loading and unloading coverage insures against the damage of equipment and materials during transport, loading, or unloading.
- Bobtail coverage is recommended when you’re using tractors without a trailer. It usually covers the insured vehicle at all times, even during non-work-related uses.
Need help choosing the right insurance policies for your business? Answer three questions and we can help you find the most affordable coverage.
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Insureon makes it easy for business owners to compare quotes for Colorado commercial auto insurance. You can also consult with a licensed insurance agent on your business insurance needs. Complete our easy application to review quotes on small business insurance from leading U.S. insurance companies. Start an application for a commercial auto insurance quote today.
Updated: June 10, 2025
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