(800) 253-1482Tennessee Commercial Auto Insurance
Summary: Commercial auto insurance isn't just required for businesses in Tennessee, it's the wise choice to protect your company. Your enterprise relies on vehicles every day to get the job done, and when there are accidents, liability claims, and costly repairs, having the right coverage matters. Whether you're a contractor, food truck owner, or delivery driver, customized commercial car insurance ensures you're compliant and protected. Shop around to find affordable policies tailored to your industry’s unique needs. Estimated Read Time: 11 mins
No matter how your business runs, if vehicles are part of the job, the right insurance is a must. In Tennessee, commercial auto insurance isn’t just smart for protecting your business, it’s legally required for any driving related to commerce. Explore the best coverage options for your industry and discover how small businesses can stay protected affordably.
What Is Commercial Auto Insurance in Tennessee?
Commercial auto insurance in Tennessee covers vehicles used for business purposes, and that includes whether you're running a fleet or just using your personal car for work.
In Tennessee, commercial car insurance is required by law if you're driving for business. Personal auto insurance policies won't apply in these situations, so coverage tailored for business use is essential for staying compliant and protected.
Whether you're a contractor, real estate agent, or delivery driver, commercial auto insurance helps protect both your vehicle and your livelihood while you're on the road.
How Much Is Commercial Auto Insurance in Tennessee?
If you’re a small business owner in Tennessee, the cost of your commercial car insurance isn’t one-size-fits-all. It depends on a mix of things like your industry, vehicle type, driving history, and even where you operate.
For example, if you’re a contractor hauling heavy gear every day, your premiums will likely be higher than a consulting firm just running the occasional errand.
Driving a simple delivery van? That’ll usually cost less to insure than a loaded-down work truck.
Location plays a role, too. Driving through busy Memphis traffic? Expect higher rates than someone cruising quiet country roads.
Your driving record, accident history, weather risks, and how much coverage you buy, all of it adds up when determining your premium.
Insurance companies also look at risk differently, so the same coverage could come with very different price tags depending on who you ask.
That’s why it’s always smart to shop around and compare different policies providing auto insurance for commercial vehicles before you commit.
Here at Freedom Insurance Group, we help small businesses save money and stay protected by comparing top-rated carriers offering coverage.
Compare commercial auto insurance quotes near you by filling out the form below or contact one of our agents by calling one of our agents using the number at the top of the page:
Do I Need Commercial Auto Insurance in Tennessee?
If your business uses vehicles for anything work-related, such as making deliveries, hauling equipment, transporting passengers, or even just running errands, you probably need commercial auto insurance.
A personal car insurance policy usually won’t cut it. Any vehicle owned by your business must be properly insured, and if employees are behind the wheel, that coverage is legally required.
Even if you're using personal, leased, or rented vehicles for business tasks, you’re still at risk. In those cases, something like Hired and Non-Owned Auto Insurance (HNOA) can help fill the gap.
Bottom line? If driving plays any role in your day-to-day operations, it’s worth checking with an insurer to make sure you have auto insurance for commercial purposes before an accident happens.
Commercial Auto Insurance vs. Personal Auto Insurance
It’s easy to assume your personal auto insurance has you covered when you’re driving for work, especially if it’s your own car. But here’s the catch: most personal policies don’t cover business use.
So, if you’re out delivering goods, hauling tools, or heading to a client meeting and get into an accident, you’re likely to be on the hook for the costs.
That’s where commercial auto insurance comes in. It’s built for business use, offering higher liability limits and coverage that fits the risks of the job.
Both personal and commercial policies protect against property damage and liability, but the difference lies in how and when they apply.
Think of it this way: personal coverage is for personal errands. Business tasks? That’s commercial territory.
Whether you're making local deliveries or managing a full fleet, if you’re using a vehicle for commerce, you need the right insurance to back you up.
Trucking Insurance
Commercial truck insurance is designed to protect larger trucks while they’re on the job—whether you’re an owner-operator, a for-hire carrier, or hauling your own goods. These policies cover everything from cargo damage to liability risks and accidents on the road.
While similar to standard commercial auto insurance, truck policies are tailored for bigger rigs and come with specific requirements based on your truck type and industry.
If you’re operating in Tennessee, the right coverage keeps you compliant, protected, and ready to roll.
To learn more or to ask questions, each out to one of our agents or click the link to explore your options for commercial truck insurance to keep your operation rolling.
Small Business Fleets
Business vehicle insurance can cover your whole fleet, no matter how big or small. Plus, bundling multiple vehicles can help you score some great discounts. Whether you're managing a bunch of sprinter vans or just a few work trucks, getting the right coverage makes a huge difference in protecting your enterprise and saving money.
Contractors
For contractors, having the right commercial auto insurance is essential to protect your vehicles and business. Whether you're hauling equipment, materials, or tools to a job site, your vehicles are crucial to your operations. Here’s how a commercial auto insurance policy protects different types of contractors:
- General Contractors: Whether you're managing construction projects or transporting materials, commercial auto insurance covers your vehicles, protecting you from accidents or damage that could affect your ability to work.
- Electrical Contractors: As an electrical contractor, you likely use specialized vehicles to transport heavy tools and equipment. Commercial coverage ensures that your vehicle and cargo are protected if you're involved in an accident or if equipment is damaged.
- Plumbing Contractors: Plumbing contractors frequently need to carry tools, pipes, and other heavy materials. Commercial auto insurance can cover damage to these materials and provide protection in case your vehicle is involved in an accident.
- HVAC Contractors: HVAC contractors rely on their vehicles to transport bulky equipment like air conditioning units and heating systems. Commercial auto insurance helps safeguard against risks like accidents or damage to costly equipment.
- Roofing Contractors: Roofing contractors often use trucks and vans to transport roofing materials. With commercial auto insurance, you're protected if your vehicle gets damaged or if you're involved in a traffic incident while on the job.
No matter the type of contractor, having the right commercial policy ensures that you're covered when your vehicles are being used for business purposes.
Uber, Lyft, and Other Ridesharing Services
Ridesharing services continue to evolve, but one thing is for sure: operators need proper coverage in place. While platforms like Uber or Lyft may provide some insurance, there are several gaps that can arise, leaving you to pick up the pieces.
Don’t let your side hustle set you back. The right rideshare insurance will help you avoid these risks while keeping you in the good graces of your auto insurance carrier.
Food Delivery
If you deliver food in Tennessee, whether it's for your local pizza spot or through apps like Uber Eats or DoorDash, you’ll need commercial auto insurance. Personal policies won’t cover you if there’s an accident while you're working and you may not be covered for other incidents if you’re using your vehicle outside of a personal reason at the time.
Sole Proprietors
Getting to the office is one thing, but if you’re running your own business and there’s an issue while using your vehicle, you’re unlikely to be covered without a commercial car policy. Whether you’re delivering products, hauling gear, or meeting with clients, personal auto insurance won’t have your back. To stay protected on the road, commercial auto coverage is required.
Food Trucks
From Memphis BBQ to Nashville hot sandwiches to all of your favorite Southern comfort foods, Tennessee’s food truck scene is thriving. But if you're behind the wheel of one, business auto insurance is required to keep your operation compliant.
Remember, local regulations may dictate how much coverage is required. It's always important to check the city you're operating in to ensure you're properly covered.
Non-Owner Vehicles
Some businesses rely on vehicles they don’t own to get the job done. This includes the use of vehicles belonging to the business owners themselves and their employees, but they are not property owned by the enterprise. In these cases and more, HNOA insurance can help you meet your company’s needs while protecting against perils that could arise.
Which Car Insurance Commercial Coverages Are Available in Tennessee?
If your business uses vehicles for anything work-related, such as making deliveries, hauling equipment, transporting passengers, or even just running errands, you probably need commercial auto insurance.
A personal car insurance policy usually won’t cut it. Any vehicle owned by your business must be properly insured, and if employees are behind the wheel, that coverage is legally required.
Even if you're using personal, leased, or rented vehicles for business tasks, you’re still at risk. In those cases, something like Hired and Non-Owned Auto Insurance (HNOA) can help fill the gap.
Bottom line? If driving plays any role in your day-to-day operations, it’s worth checking with an insurer to make sure you have auto insurance for commercial purposes before an accident happens.
Drivers have plenty of options to choose from. Commercial auto insurance for small businesses protects owners against liability claims, property damage, and can be tailored to cover industry-specific risks.
The best commercial auto insurance policy is one that meets your enterprise’s needs at the lowest possible rate. Here are some common ways affordable commercial auto insurance can protect your business:
Commercial Auto Liability Insurance
Liability coverage is where all commercial policies start, and in Tennessee, it’ll protect you by covering medical bills, funeral expenses, rehab, and property damage to other parties when you’re at fault in an accident.
Everyone is required to maintain a minimum level of coverage to operate in the Volunteer State, which is as follows:
- $25,000 per person, $50,000 per accident for bodily injury
- $15,000 for property damage
Keep in mind that commercial auto insurance companies offer higher limits, which may be necessary depending on your vehicle, industry, and risk tolerance.
Furthermore, commercial truck insurance liability limits are different, with heavy trucks requiring their own distinct form of coverage.
Comprehensive Coverage
Commercial vehicles deal with a lot and often face diverse environments, which can present many different risks. These risks can lead to damage outside of an accident, including hail damage, vandalism, a warehouse fire, etc. Having comprehensive coverage protects your company’s bottom line by covering the repairs, minus your deductible.
Collision Coverage
Collision coverage helps repair or replace your company vehicle after an accident, regardless of fault, object damage, or rollover. To qualify, you must first have comprehensive coverage or fire and theft with CAC. Like comprehensive policies, a deductible applies before reimbursement.
Underinsured/Uninsured Motorist Coverage
Sadly, not everyone has coverage, and even drivers who do may not have enough to restore your loss. Furthermore, hit-and-run incidents are unfortunately a part of life, which can cost those affected thousands of dollars.
ncidents like this are more common than you might expect but commercial driving insurance can protect your business from picking up the pieces through underinsured/uninsured motorist coverage.
Roadside Assistance and Expanded Towing Coverage
When a job hits a snag, the last thing you need is stress over a disabled company vehicle. Roadside assistance takes the worry off your plate, offering help for flat tires, dead batteries, or fuel delivery. Pair it with towing coverage for added peace of mind when repairs require a shop visit.
Gap Coverage
Gap insurance helps cut down on the business expenses when your vehicle is totaled or stolen. If you still owe on a vehicle, your enterprise will need to cover the note even if you are no longer able to use it. Gap coverage pays the difference, so your company’s finances are protected.
Additional Coverages
Every business faces different risks, which is why commercial auto coverage isn’t one-size-fits-all. Options like Fire and Theft with CAC offer affordable protection against things like fire, theft, windstorms, and flooding. Our agents can tailor a plan that fits your business and budget.
Commercial Auto Insurance FAQs for Tennessee
Running a business comes with plenty of moving parts. We understand that insurance is just one of the many things owners have to deal with, which is why we’re here to help. Below are some fo the most frequently asked questions our agents hear about commercial auto insurance in Tennessee:
How Do I Get Commercial Auto Insurance in Tennessee?
Getting commercial auto insurance in Tennessee is a straightforward but necessary step to protect your business vehicles:
- First, assess your needs—how your vehicles are used, how many you have, and who’s driving them.
- Then, shop around for quotes to find the best coverage. Make sure you have your vehicle details, driver info, and business specifics ready. It’s helpful to work with an insurance agent who understands Tennessee's rules to ensure you get the right coverage.
- Don’t forget, you need commercial coverage before registering your vehicle for business use.
- While a general business license isn’t required for insurance, you may need business registration documents if you're a corporation, LLC, or partnership.
Make sure everything’s in place to stay compliant and protected.
Do You Need Both Commercial and Personal Auto Insurance in TN?
Yes, if you use your vehicle for both business and personal errands, you’ll need both policies. Commercial auto insurance covers work-related use, while personal auto insurance handles everyday driving. Having both ensures you're fully protected, no matter the trip, and keeps you from unexpected surprises when filing a claim.
Is Commercial Auto Insurance More Expensive for Tennessee Drivers?
Commercial auto insurance costs more than personal coverage due to the higher risks of business use. Business vehicles typically drive more miles, carry heavier loads, and sometimes transport hazardous cargo, increasing the potential for accidents. Commercial policies have higher liability limits to cover these risks, which leads to higher premiums.
Are Trailers Covered Under Commercial Auto Insurance in Tennessee?
In most cases, standard commercial auto insurance policies don’t automatically cover trailers, and the few that do will often do so at an added cost. For most, enrolling in a separate policy is the best way to ensure your trailer is protected.
Is Commercial Auto Insurance a Tax Deduction in Tennessee?
Whether you can deduct commercial auto insurance depends on how the vehicle is used. The IRS allows deductions if the expense is “ordinary and necessary,” but only business-related use qualifies.
Self-employed individuals use Schedule C (Form 1040), while employees file with Form 2106.
In any case, be sure to track business mileage, keep accurate records, and always consult a licensed tax professional before deducting commercial auto insurance in Tennessee.
