When operating a vehicle for business purposes in New Jersey, it’s critical to have the appropriate auto insurance. In many cases, this means you’ll need a commercial car insurance policy, which comes with significantly higher liability limits than a minimum-coverage personal policy.

Here’s what you need to know about buying commercial car insurance in New Jersey, including insurance requirements.

Commercial car insurance requirements in New Jersey

When you use a vehicle primarily for business purposes, you’ll need to carry a commercial car insurance policy.

Business owners need to purchase commercial auto insurance for any company vehicles. This might include fleets of trucks, buses, vans, or even a single delivery sedan. Additionally, self-employed drivers who use their vehicles to transport passengers may need commercial auto insurance in New Jersey.

If you occasionally use your personal vehicle for business activities, you may or may not need commercial auto insurance. Reach out to the insurance company that issued your personal auto insurance policy to determine if its coverage is sufficient for your limited business uses.1

Recently, the Garden State passed a new law changing the insurance rules for the state and increasing the commercial automobile liability coverage requirements.

As of July 1, 2024, commercial vehicles with gross weight ratings of 26,001 pounds or more and cabs must carry at least $1.5 million in liability coverage. For commercial vehicles with gross weight ratings between 10,001 and 26,001, the minimum liability coverage requirement is $300,000.2

Optional commercial auto insurance coverages

Bodily injury liability coverage and property damage liability coverage only help you pay for damages and injuries you or your employees cause to others. But this type of coverage won’t help pay for repairs to your vehicle.

Beyond bodily injury and property damage coverage, you can purchase add-on policies to better protect your wallet against potential risks. Some of these optional coverage types include:1

Best commercial car insurance companies in New Jersey

The best commercial car insurance company for you varies based on your situation. But across the insurance market, some auto insurance companies tend to offer better solutions than others.

Based on rating factors like coverage options, pricing, relevant discounts, customer service, claims satisfaction, scores from rating organizations, and more, the following companies represent some of the best choices for commercial car insurance in New Jersey.

NJM: Best for customer satisfaction

State Farm: Best for extensive coverage options

USAA: Best for veterans

Average cost of commercial car insurance in New Jersey

As with personal auto insurance, commercial car insurance costs vary based on your situation. Generally, a commercial auto insurance policy in New Jersey costs between $250 and $1,340 per month.

The exact costs you’ll face within that large range depend on details like the vehicle you drive, your and your employees’ driving records, claims history, coverage selections, location of the business, and how often you use the vehicle.

What business owners should know about commercial auto insurance in New Jersey

As a business owner considering a commercial auto insurance policy, it’s helpful to start with an assessment of your risk exposures. Generally, operating larger fleets of delivery vehicles in a busy urban area comes with more risk than operating a single pickup truck in a rural location. Insurance companies typically compensate for more risk with higher insurance premiums.

When exploring your options, you’ll likely see that commercial auto insurance tends to cost more than a personal policy. In part, you can attribute the higher costs to the fact that commercial auto insurance policies have higher liability limits than personal policies in the Garden State.2

How to get commercial car insurance in New Jersey

If you need to purchase a commercial automobile insurance policy, follow these steps:

1. Evaluate your coverage needs. Determine what type of coverage you need, what add-ons you want, and the coverage limits you have in mind.

2. Shop around. With an idea of your coverage needs, compare insurance quotes across multiple companies to find the most affordable option for your unique situation.

3. Seek out additional savings. Some auto insurance companies offer discounts that could reduce your premiums. Additionally, consider raising your deductible to an amount you can afford in order to tap into lower rates.

4. Purchase a policy. You’ll typically finalize an auto liability policy by paying for either all or part of your premium up front.

Commercial auto insurance in New Jersey FAQs