Commercial auto insurance in North Carolina

Any North Carolina company that uses vehicles for business purposes must insure them appropriately. Commercial auto insurance covers vehicles specifically owned by your business. It will not cover leased, rented, or personal vehicles.

Your personal auto insurance policy covers you while driving to and from work, but not while making deliveries, picking up supplies, and other work-specific uses.

A business auto policy would cover you and your personal vehicle in case you’re at fault for an accident during a work-related errand.

Any vehicles you own solely for work purposes must be covered by a commercial auto policy in the state of North Carolina, whether you own a landscaping pickup, a food truck, or a fleet of company cars.

If you’re using your own vehicle for work-specific activities, your personal auto policy wouldn’t cover you in the case of an accident. That’s why many small business owners purchase hired and non-owned auto (HNOA) insurance.

This liability policy covers accidents in personal, leased, and rented vehicles used for work purposes.

If you or an employee gets into an accident while driving a personal car for a work errand, your HNOA coverage would help pay for any claims or lawsuits against your business.

It’s worth noting that this would not cover damage to the vehicle used by your business.

Your business could be in legal and financial jeopardy without commercial auto insurance coverage. In North Carolina, all vehicles are required to carry auto liability insurance. 

If one of your business vehicles is at fault in an accident, you could face an expensive lawsuit or settlement. You’d likely have to pay for physical damage to the other vehicle or property, medical costs, lost wages, pain and suffering, plus other related costs.

Additionally, you could face severe penalties for not carrying auto insurance. Driving without insurance in North Carolina is considered a Class 1 misdemeanor and can result in a fine of $50 or more, suspension of license plates and/or vehicle registration, and probation or up to 45 days in jail.

All vehicles in the state of North Carolina are required to have a minimum amount of auto liability insurance coverage, whether they’re for personal or business use.

North Carolina’s minimum requirements for auto liability insurance (and uninsured motorist coverage) are:

• $30,000 bodily injury liability per person
• $60,000 bodily injury liability per accident
• $25,000 property damage liability

Your insurance agency might recommend higher liability coverage limits based on the types of vehicles you own and how they’re used.

Personal injury protection (PIP) is not required in North Carolina but is recommended as an add-on to your commercial auto policy to help pay for medical expenses, regardless of who was at fault.

Semi-trucks, utility trailers, cargo trailers, and other vehicles with a U.S. Department of Transportation of North Carolina serial number will have additional liability coverage requirements, depending on the type of vehicle and how it’s used.

You can check if your business needs these additional requirements by looking up your USDOT number or docket number on the Federal Motor Carrier Safety Administration's website.

Insureon makes it easy for business owners to compare quotes for North Carolina commercial auto insurance. Complete one easy application to review quotes specific to your business and industry from leading U.S. insurance companies.

You can also speak to a licensed insurance agent if you have questions about the best type of business insurance for your specific needs.