About $154 a month
Commercial auto in California
Insureon average for its California customers, updated March 2026
California · state requirements
Commercial auto insurance in California
For California businesses that run vans, pickups, box trucks, rigs or passenger vehicles: the liability minimums, DMV and CPUC filings, penalties and typical costs.
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What similar businesses pay
- Commercial auto in California
- About $154 a month
- Commercial auto, national
- About $245 a month
- Business auto, national
- $207 a month per vehicle
Published benchmarks, not quotes. Your price depends on underwriting.
Cost
What commercial auto insurance in California costs
About $245 a month
Commercial auto, national
Insureon national average, updated March 2026
$207 a month per vehicle
Business auto, national
Progressive Commercial national median, 2025 new policies, clean records
$821 a month per truck
For-hire truck, national
Progressive Commercial national median, 2025 new policies, clean records
Insureon reports that its California customers pay an average of $154 a month, or $1,843 a year, for commercial auto, the lowest of the states it lists and below its national average of $245 a month. Its customers are mostly businesses with fewer than five employees, so the figure reflects light vehicles more than trucks. Progressive Commercial’s national 2025 medians show the spread by vehicle: $207 a month per vehicle for business autos such as service vans and $821 a month for for-hire transport trucks, for liability and physical damage with no driver violations. A California for-hire carrier that must show $750,000 for its Motor Carrier Permit should budget well above the small-business average.
What moves your price
- Vehicle type and weight, especially 10,001 pounds and over
- Liability limits, from the 30/60/15 minimum to $750,000 or more for permits
- Driving records of every driver
- Where vehicles are garaged and driven in California
- Whether you haul property or passengers for hire
- Claims history and years in business
- Vehicle values and physical damage deductibles
California
What’s different in California
Minimums doubled in 2025 and rise again in 2035
Vehicle Code 16056 set the minimum at $30,000 per person, $60,000 per accident and $15,000 for property damage for policies issued or renewed from January 1, 2025, up from 15/30/5. From January 1, 2035 it rises to $50,000, $100,000 and $25,000.
Any paid hauling needs a Motor Carrier Permit
The DMV requires a Motor Carrier Permit from anyone paid to transport property, regardless of vehicle size, and generally from operators of commercial vehicles of 10,001 pounds or more, vehicles carrying hazmat and any operation requiring a commercial driver license.
Permits carry higher insurance floors
Vehicle Code 34631.5 requires motor carriers of property to keep at least $750,000 combined single limit on file, or $300,000 if they run only vehicles under 10,000 pounds and haul no hazmat or bulk petroleum. Higher limits apply to petroleum and hazardous loads.
Movers and passenger carriers answer to the CPUC
The DMV says household goods and passenger carriers operating under Public Utilities Commission authority do not need a Motor Carrier Permit. Charter-party passenger carriers file insurance with the CPUC under General Order 115-G, from $750,000 to $5,000,000 by seating capacity.
Lapses suspend registration and bring fines
The DMV suspends a vehicle’s registration when it does not receive proof of insurance. Under Vehicle Code 16029, failing to show proof of insurance carries a fine of $100 to $200 plus penalty assessments on a first conviction, and $200 to $500 plus assessments on a later one within three years.
Coverage
Coverage California businesses need
Auto liability
Pays for injuries and property damage your vehicles cause to others. It is what the state, the DMV permit program, the CPUC and the FMCSA require, and what clients ask to see on a certificate.
How commercial auto works →Uninsured and underinsured motorist
Protects your drivers when the other driver has no insurance or only the 30/60/15 minimum, which may not cover a serious injury.
Medical payments
Pays medical bills for your driver and passengers after a crash, regardless of fault.
Physical damage
Collision and comprehensive repair or replace your vehicles after a crash, theft, fire or flood. A lender or lessor may require it.
Hired and non-owned auto
Covers liability when employees drive their own cars for work or you rent vehicles. A personal auto policy may not respond to business use.
Motor truck cargo
Covers loss of or damage to freight in your care while it is loaded, in transit or being unloaded.
Workers’ compensation
The DMV asks Motor Carrier Permit applicants for proof of workers’ compensation insurance or a signed exemption, so line it up before you apply.
How workers’ compensation works →Umbrella or excess liability
Adds limits above the auto policy when a contract or your own exposure calls for more than the primary policy provides.
How umbrella / excess works →Rules
California requirements
California splits commercial vehicle rules between the DMV, the California Highway Patrol and the Public Utilities Commission. Each row cites the statute, regulation or agency page it comes from.
| Requirement | Applies to | What it means |
|---|---|---|
| State liability minimum | Every vehicle on California roads | $30,000 per person, $60,000 per accident and $15,000 property damage for policies issued or renewed from January 1, 2025; $50,000, $100,000 and $25,000 from January 1, 2035 (Vehicle Code 16056). |
| Motor Carrier Permit | Anyone paid to haul property; most commercial vehicles of 10,001 pounds or more; hazmat; CDL operations | Issued by the DMV with a certificate of insurance (MC 65 M) and proof of workers’ compensation or an exemption. Some pickups under 11,500 pounds used non-commercially are exempt (DMV). |
| Permit insurance, general property | Motor carriers of property | $750,000 combined single limit; $300,000 if operating only vehicles under 10,000 pounds without hazmat or bulk petroleum (Vehicle Code 34631.5). |
| Permit insurance, hazmat and petroleum | Carriers of petroleum, hazardous materials and waste | $1,000,000 for oils, listed hazardous materials and hazardous waste; $5,000,000 for explosives, radioactive materials and large compressed-gas tanks (Vehicle Code 34631.5). |
| CA carrier number | California-based motor carriers of property and for-hire carriers | Obtain a CA number from the CHP before applying for a permit and display it on both sides of trucks with two or more axles over 10,000 pounds and any truck hauling property for pay (Vehicle Code 34507.5). |
| Charter-party passenger carriers | CPUC-licensed passenger carriers | $750,000 for 8 or fewer seats, $1,500,000 for 9 to 15 and $5,000,000 for 16 or more, including the driver (CPUC General Order 115-G). |
| Federal minimum, general freight | Interstate for-hire carriers of nonhazardous property, 10,001 pounds or more | $750,000 (49 CFR 387.9). |
| Federal minimum, hazmat | Interstate carriers of oil and hazardous materials | $1,000,000 for oil and listed hazardous materials; $5,000,000 for the highest-hazard bulk loads (49 CFR 387.9). |
| Penalty for no proof of insurance | Drivers who cannot show financial responsibility | $100 to $200 plus penalty assessments first; $200 to $500 plus assessments within three years (Vehicle Code 16029). The DMV suspends registration without proof on file. |
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Pay less
How to lower the cost
- Check whether every vehicle truly needs the $750,000 permit limit; carriers running only vehicles under 10,000 pounds without hazmat qualify for $300,000 under Vehicle Code 34631.5.
- Hire drivers with clean records and review them regularly; Insureon lists driving records among the main price factors.
- Keep the MC 65 M insurance certificate and CA number current so a lapse never suspends your permit or registration.
- Raise physical damage deductibles on older vehicles, or drop collision where the vehicle’s value is low.
- Add hired and non-owned auto instead of insuring every employee’s personal car on a commercial policy.
- Compare quotes from several insurers at each renewal, because each insurer prices the same fleet differently.
Before you start
What underwriters ask for
- Each vehicle’s VIN, year, make, model, weight rating and garaging address
- Each driver’s name, date of birth, license number and experience
- USDOT, CA and Motor Carrier Permit numbers, or CPUC permit number
- What you haul or whom you carry, and your radius of operation
- Limits required by your permit, clients or contracts
- Workers’ compensation policy or exemption
- Three to five years of loss runs
Common questions
Commercial auto insurance in California: questions
What are California’s minimum auto insurance limits in 2026?
For policies issued or renewed since January 1, 2025, Vehicle Code 16056 requires $30,000 per person, $60,000 per accident and $15,000 for property damage. Those minimums rise to $50,000, $100,000 and $25,000 in 2035.
Do I need a Motor Carrier Permit for a cargo van?
If you are paid to transport property, yes, regardless of vehicle size, according to the DMV. A van used only to carry your own tools and materials generally needs one only if it is 10,001 pounds or more, carries hazmat or requires a commercial license.
How much insurance does a Motor Carrier Permit require?
Vehicle Code 34631.5 sets $750,000 for most motor carriers of property and $300,000 for carriers that operate only vehicles under 10,000 pounds and haul no hazmat or bulk petroleum. Hazardous loads require $1,000,000 to $5,000,000.
What is a CA number?
It is a carrier identification number from the California Highway Patrol. The DMV says new carriers must get one before applying for a Motor Carrier Permit, and Vehicle Code 34507.5 requires it to be displayed on both sides of covered trucks.
Do moving companies need a Motor Carrier Permit in California?
No. The DMV says household goods and passenger carriers operating under Public Utilities Commission authority do not need one; they file their insurance with the CPUC instead.
How much does commercial auto insurance cost in California?
Insureon reports an average of $154 a month for its California customers, updated March 2026, the lowest of the states it lists. Trucks hauling for hire cost much more; Progressive Commercial’s 2025 national median for for-hire transport trucks is $821 a month.
Who can help me compare California commercial auto quotes?
Florin is an independent broker that compares options from several insurers. Have your vehicle list, driver list and any USDOT, CA or permit numbers ready.
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Sources (11)
- California Vehicle Code 16056, minimum liability amounts
- California Vehicle Code 16029, penalties
- California DMV: insurance requirements
- California DMV: Motor Carrier Permits
- California Vehicle Code 34631.5, motor carrier insurance
- California Vehicle Code 34507.5, carrier identification number
- CPUC General Order 115-G, charter-party carrier insurance (amended March 2024)
- 49 CFR 387.9, federal minimum levels of financial responsibility
- Insureon: commercial auto insurance in California (updated March 2026)
- Insureon: commercial auto insurance cost (updated March 2026)
- Progressive Commercial: commercial auto insurance cost (2025 data)
Figures are published third-party estimates, not quotes. Coverage depends on policy terms and underwriting, and rules vary by state. Updated October 2026.