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10 minute read Published on Jun 14, 2025 by BrokerLink Communications
Insuring your business vehicles couldn’t be easier thanks to BrokerLink. If your company uses vehicles for business purposes, commercial auto insurance is a must. Commercial auto insurance covers a wide range of risks that come with you or your employees driving vehicles for business purposes. Whether you have one company car or a fleet of vans, commercial auto insurance will protect some of your most important business assets. Continue reading to learn more about insuring your business vehicles in Canada.
Commercial auto insurance is a type of specialty car insurance designed to protect vehicles driven for business purposes. Businesses of all sizes across all industries can purchase commercial auto insurance policies. In addition, commercial auto insurance is for businesses with any size fleet of vehicles, whether your business has one single delivery van or a fleet of hundreds of vehicles, commercial auto insurance is equally important.
When an individual policy is purchased (e.g. if you operate a small business that only uses one commercial vehicle or you have multiple cars but want to insure each separately), it is referred to as commercial auto insurance. However, if your business has multiple company cars and you wish to insure them together under one policy, this becomes what is known as fleet insurance.
Both commercial auto insurance and fleet insurance can be registered in the name of the business or the name of someone associated with the business, such as the business owner or director. Like any type of car insurance, a commercial auto insurance policy can be paid for annually or monthly. They can also be customized to insure all employees on all vehicles (any driver policy) or specific employees on specific vehicles (named driver policy).
Any business in Canada that uses a vehicle for business purposes must purchase a commercial auto insurance policy. The question becomes how many policies you purchase or whether you purchase one policy for all vehicles (if your business owns more than one).
Commercial auto insurance offers many of the same benefits as personal car insurance policies. Namely, they protect drivers, passengers, and vehicles from financial losses. Therefore, this type of insurance is suited to all kinds of businesses, from taxi firms and delivery companies to retail stores and moving companies.
Your business does not have to be involved in the transport industry to benefit from commercial auto insurance. There is also no minimum number of vehicles or other fleet insurance requirements for fleet insurance that your business must use to be eligible for a commercial auto insurance policy. Even if you operate a small business with one single van, it should still be insured through a commercial auto insurance policy.
Vehicles owned by a business should be insured under a commercial auto policy that is paid for by the company itself. If you use your own car for business purposes, most businesses will offer some sort of company car insurance.
At the same time, if you are self-employed, and use your own car for commercial reasons, you will need to purchase your own commercial insurance in addition to a personal auto policy as you will not be covered under a personal policy if something happens while you are using your car for business purposes.
The purpose of insurance for company vehicles is to ensure that you and your employees are protected against the unexpected while out on business journeys. However, the coverage included with commercial auto insurance policies varies depending on the province or territory you operate in and your business’s unique needs. First and foremost, just like with personal car insurance, all commercial auto insurance policies must comply with provincial law. Each Canadian province has its own regulations on auto insurance, including certain types of mandatory coverage and optional policies. The following sections will discuss these coverages in greater detail:
Third-party liability car insurance protects your business if an employee gets into a car accident that injures another person or causes damage to another person’s property. Under this portion of your policy, you can receive compensation to pay for medical expenses associated with bodily injuries or repairs of a damaged car, as well as any legal fees or court fees up to the coverage limit. In Ontario, all commercial auto insurance policies must include a minimum of $200,000 in third-party liability insurance.
Direct compensation - property damage coverage protects a commercial car and its contents from the costs of property damage. This type of coverage only applies if the driver is not at fault for the collision that caused the damage. This type of coverage gets its name from the fact that the insurer typically provides direct payment for the damage caused (such as to repair or replace a vehicle). To receive compensation under the direct compensation portion of your commercial auto insurance policy in Ontario, the incident must meet the following criteria: it happened in Ontario, it involved multiple cars, and it involved at least one car that participates in the province’s car insurance program.
Uninsured motorist coverage protects you and any passengers in your business vehicle if you get into an accident with an at-fault driver who is uninsured or underinsured. This type of coverage also protects company cars against hit-and-run accidents. Uninsured automobile coverage covers medical expenses relating to injuries, car repairs due to damage, lost wages, and more.
Next, commercial auto insurance coverage in Ontario must include accident benefits coverage. If you, a passenger, or a pedestrian require medical attention following a collision, accident benefits coverage can help. Protection is offered regardless of who was at fault for the accident and can help pay for loss of income, medical expenses, and more.
Optional collision car coverage protects your business if an insured employee gets into an accident with another vehicle or object on the road, no matter who is responsible for the accident. Under the collision coverage section of your policy, your business can receive compensation to help pay for any property damage that resulted from the collision, such as car repairs.
Comprehensive coverage is one final type of optional commercial auto insurance coverage. It protects your business vehicles against several risks not covered by standard car insurance. For example, if you purchase comprehensive car coverage, you can be protected against perils like theft, vandalism, fire, water damage, falling objects, and more. Ultimately, comprehensive coverage is known for providing peace of mind, which is important for business owners in Canada.
One final type of optional car insurance coverage popular among drivers is accident forgiveness. Accident forgiveness is additional coverage that can be added to your car insurance policy as an endorsement, to protect your driving record and to help prevent your insurance premium from increasing if you have an at-fault accident claim.
Note: coverage varies by province
Using a personal vehicle for business purposes is possible. However, if you are in a collision in your own personal vehicle while conducting business, your personal auto policy will not cover you. You will need to purchase commercial vehicle insurance on top of your personal auto insurance to ensure that you are comprehensively covered, whether you're using your car for personal use or not.
Commercial auto insurance varies in price depending on the insurance provider, as well as the coverage types and limits chosen. When calculating commercial auto insurance premiums, insurers take several factors into account. Understanding which business-related and vehicle factors come into play might help Canadian business owners find the right coverage for them. Without further ado, the key factors insurance companies use to determine car insurance premiums:
Commercial auto insurance can be expensive, but there are ways to make it cheaper. BrokerLink never wants you to overspend on commercial auto insurance, which is why our expert advisors have put together a list of tips on how to save money and find a cheap commercial car insurance policy in Canada:
One way to reduce how much you pay for commercial auto insurance is to instal winter tires on your business vehicles. Winters in Canada make driving more challenging, and yet very few provinces have made winter tires mandatory. But if you make the proactive choice to outfit your commercial vehicles with winter tires, your insurance company may reward you by lowering your premium. This is because snow tires are proven to have better traction, increasing your safety on the road and decreasing your odds of getting into an accident.
Another way to keep commercial auto insurance costs down is to limit the driving age of your employees to 25 and over. Car insurance, including commercial auto insurance, tends to be most expensive for young drivers under the age of 25. Whether you purchase a commercial auto policy for one vehicle or fleet insurance for multiple vehicles, insuring a young driver can significantly increase your premium. But if you opt to only insure employees over the age of 25 with good driving records, you could save money.
Implementing business procedures relating to driver risk management can save you money on commercial auto insurance. For example, your risk management program could include hiring only vetted and well-trained drivers, laying out clear and detailed policies and procedures, drafting documents on preventative maintenance, and ensuring all company cars are in full compliance with motor vehicle regulations, which can reduce your premium.
Insurance companies calculate commercial auto insurance premiums according to risk. Therefore, equipping your business vehicles with a variety of safety features can save you money. When purchasing a new vehicle for your business, consider one with modern risk management technologies, such as lane assist or emergency braking. These features can reduce the odds of you getting into an accident and may also lower your premium.
If you can prove to the insurance company that your business vehicles are stored in a safe place and are therefore at a reduced risk of being damaged or stolen, they might lower your premium. You should aim to store business vehicles in locked or covered areas, like a security-monitored parking garage.
Another way to save money on commercial auto insurance is to increase your policy deductible. A general rule of thumb in the insurance industry is that the higher your deductible, the lower your premium. Increasing your deductible (the amount the policyholder is responsible for paying towards an insured loss), means the insurance company doesn’t have to take on as much risk to take on. That said, increasing your deductible has both pros and cons. If you are considering raising your policy deductible, contact BrokerLink to learn more about how this decision could affect your business.
BrokerLink’s final tip for saving money on commercial auto insurance is to purchase eco-friendly business vehicles. Several insurance companies in Canada offer discounts to businesses that operate hybrid or electric vehicles. Therefore, purchasing eco-friendly vehicles will not only benefit the planet, but it can also benefit your profit margins.
Getting business insurance for your commercial vehicle fleet is easier than ever with BrokerLink. Our experienced brokers will walk you through the entire process from start to finish, so you can get back out on the road in no time. Here's what you need to do:
The first step to finding the best commercial auto insurance policy at a competitive price is to contact an insurance broker. Insurance brokers at BrokerLink know the ins and outs of the industry and can give you their honest, objective opinions on the right coverage for your business. To get started, simply give us a call, send us an email, or visit us in person.
To find the best commercial auto insurance policy for your business, shopping around is a must. But when you partner with BrokerLink, we shop around for you. After all, contacting multiple insurance companies and obtaining quotes can be tedious. Let us take care of everything. We will obtain and compare quotes to find the most comprehensive coverage at the most affordable price.
Better yet, our brokers will search around for available discounts that could help you save on your business coverage! Whether it be a safe driver discount, putting winter tires on your vehicles, or being a member of a professional organization, we'll do our best to help you save wherever and whenever possible!
We saved the best for last! The final step to insuring your business vehicles is purchasing a policy. Your dedicated BrokerLink insurance advisors will present you with several options. They will walk you through each policy, and from there, you can pick which one is right for your business. It’s that easy!
Are you ready to protect your business vehicles with commercial auto insurance? BrokerLink can help you find an auto insurance policy that meets the specific needs and budget of your Canadian business, including the following policies:
As experts in all kinds of car insurance, we can help you find a policy in no time. Give us a call, send us an email, or visit us in person at any of our local locations across the country. For now, get a free quote for your company vehicles using our online quote tool!
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