Farmers Commercial Auto Insurance: What to Check Before You Buy

Do You Need Commercial Auto Insurance or a Personal Policy?

Personal auto policies commonly limit or exclude coverage when a vehicle is used mainly for business, such as hauling goods for customers, carrying tools and equipment to job sites, transporting paying passengers, or being driven by employees. If a claim arises during business use that your personal policy does not cover, you could be left paying the damages yourself.

A commercial auto policy is generally the better fit when one or more of these applies:

The vehicle is titled or registered to a business rather than to an individual. Employees or other non-family drivers operate the vehicle. The vehicle is a work truck, van, or other vehicle with business-specific equipment or modifications. You carry goods, materials or equipment for clients as part of your work. A client contract, lease or lender requires commercial coverage or specific liability limits. You need to list another party as an additional insured on your policy.

Occasional business errands in a personal car may still be covered under a personal policy, but that depends on the policy wording. If you are unsure, ask the agent to explain how your current policy treats your specific use before you assume you need, or do not need, a commercial policy.

Core Coverages to Understand

Commercial auto policies are built from several coverage parts. The names below are standard across the industry; what Farmers offers in your state, and on what terms, should be confirmed in the quote.

Coverage | What it generally does | Questions to ask; Liability coverage | Pays for injuries to others and damage to their property when your business vehicle is at fault, plus legal defense costs | What limits are offered, and do they meet state minimums and contract requirements? Collision coverage | Pays to repair or replace your vehicle after a crash with another vehicle or object, regardless of fault | What is the deductible, and is the vehicle valued at actual cash value or another basis? Comprehensive coverage | Covers non-collision damage such as theft, vandalism, fire, falling objects, hail or animal strikes | Is there a separate deductible, and are permanently attached equipment and modifications included? Medical payments or personal injury protection | Helps pay medical costs for the driver and passengers, depending on state rules | Is this required in your state, and how does it interact with workers' compensation? Uninsured and underinsured motorist coverage | Protects you when an at-fault driver has no insurance or too little | Is it included by default, and at what limits? Hired and non-owned auto coverage | Extends liability protection to rented vehicles and to employees' personal vehicles used for business | Do employees run errands or make deliveries in their own cars?

Depending on your operation, an agent may also discuss options such as towing and labor, rental reimbursement while a vehicle is being repaired, or coverage for tools and equipment carried in the vehicle. Equipment inside a vehicle is often handled by a separate policy, such as inland marine coverage, rather than the auto policy itself, so ask where it belongs.

Policy Limits and Deductibles

Policy limits are the maximum amounts the insurer will pay for a covered claim. Liability limits may be quoted as a combined single limit, one figure covering all injury and property damage in an accident, or as split limits, with separate caps per injured person, per accident and for property damage. State minimums are usually low compared with the cost of a serious commercial accident, and many client contracts specify higher limits. Some businesses add an umbrella or excess liability policy to extend protection above the auto policy.

A deductible is the amount you pay out of pocket on a physical damage claim before coverage applies. A higher collision or comprehensive deductible usually lowers the premium but increases what you pay after each loss. Choose a deductible your business could cover comfortably for more than one vehicle in the same year, not just for a single incident.

Exclusions and Conditions Worth Reading

Exclusions are situations the policy does not cover. Read them before signing, because they decide whether a claim is paid. Common areas to review in any commercial auto policy include:

Drivers who are not listed on the policy or who fall outside the insurer's driver eligibility rules. Uses not disclosed on the application, such as ride-hailing, delivery for app-based platforms, or hauling for hire. Intentional damage and normal wear, mechanical breakdown or maintenance issues. Cargo or customer property in your care, which may require separate coverage. Operating outside the stated radius or territory, or in states not listed on the policy. Vehicle types or weight classes that require a different policy, such as trucking operations with federal or interstate filing requirements.

What to Have Ready When Requesting a Quote

Accurate information produces an accurate quote and helps avoid coverage disputes later. Before speaking with a Farmers agent, or any other insurer, gather:

Business details: legal name, type of business, years in operation and the states where vehicles operate. Vehicle details: year, make, model, VIN, body type, gross vehicle weight where relevant, and any added equipment. How each vehicle is used: what it carries, typical travel distance from base, and whether it is garaged overnight at a business or a home address. Driver details: names, license numbers, dates of birth and driving histories for everyone who will drive. Current coverage: your existing declarations page, current limits and any recent claims history. Contract requirements: minimum limits, additional insured wording or other insurance terms your clients or lessors require.

How to Compare Farmers With Other Commercial Auto Quotes

Premium alone is a poor basis for comparison, because two quotes can look similar while covering very different things. Line quotes up on the same terms:

Match liability limits, deductibles and coverage parts so you are comparing like with like. Check how each insurer values a damaged vehicle and whether custom equipment is included. Confirm that every regular driver is eligible and listed. Ask whether hired and non-owned auto coverage is included or available. Ask whether discounts apply for bundling with general liability or a business owner's policy, for multiple vehicles, or for safety measures such as telematics, and get the condition for each in writing. Ask how claims are reported, whether repairs can be done at a shop of your choice, and what happens if a vehicle is out of service for an extended period.

Filing a Commercial Auto Claim

Learn the claim reporting process before you need it, and share it with your drivers. After an accident, make sure everyone is safe, contact police when required, exchange information with other parties, photograph the scene and the vehicles, and report the claim promptly through the channel your policy specifies. Late reporting or missing details can complicate a claim. Keep a copy of the insurance card and the claim instructions in every vehicle.

Next Step

If your vehicles are used for work, request a commercial auto quote from a Farmers agent with your vehicle, driver and usage details in hand, and ask for the same coverage structure from at least one other insurer. Before you buy, review the declarations page, the limits, the deductibles and the exclusions, and confirm that the policy meets your state's requirements and any client contracts.