Commercial auto insurance policies cover vehicles used for business purposes. Whether you haul equipment in your personal pickup or have a fleet of box trucks, a commercial auto insurance policy provides protection against financial hardship.
Quick Facts: Insuring a commercial use vehicle is often more expensive than insuring a personal vehicle because the payouts are generally higher. Some auto insurers offer business-use endorsements on personal car insurance policies, but this add-on covers only certain business tasks.
Allstate offers commercial auto insurance policies alongside business liability and property insurance so you can easily manage commercial policies in one place. Customers report a more positive experience than average with Allstate, according to the National Association of Insurance Commissioners (NAIC) Complaint Index.
Farmers Insurance offers some of the best commercial auto insurance for small business owners, with special coverages for contractors and food trucks. Contractor coverage includes insurance for tools and equipment stored in the business vehicle.
State Farm offers commercial auto insurance policies for various vehicles, including pickup trucks, farm vehicles, and vans. The insurer also provides add-on coverage for non-owned vehicles, including employees who use their cars for business.
Progressive is the largest commercial auto insurance company in the U.S., providing policies for a wide range of vehicles, including food trucks, dump trucks, vans, tow trucks, and box trucks. Progressive also offers other types of business insurance for easy policy management.
Travelers is one of the best commercial auto insurance companies for fleet vehicle coverage. The insurance company offers blanket additional insured coverage, meaning businesses with large fleets don't need to list each contracted person on the policy.
Company owners who use a personal vehicle for business purposes, as well as owners of certain vehicle types, like food trucks, need commercial car insurance. Personal auto insurance policies exclude large fleet vehicles.
Good to Know: Independent contractors, like rideshare drivers and gig delivery drivers, don't need commercial car insurance. Instead, insurers offer rideshare insurance as an add-on to personal car insurance policies.
Commercial car insurance policies generally include the following coverages:
If you cause an accident, liability coverage pays for medical bills and property damage for the other driver and their vehicle.
Collision insurance pays for damage to your vehicle after an accident, regardless of fault.
Part of a full-coverage policy, comprehensive insurance pays to repair or replace your vehicle after non-accident damage, like from weather events or falling objects.
UM/UIM insurance covers your medical bills and the damage to your vehicle if you're in an accident with an uninsured or underinsured driver.
MedPay covers medical bills or funeral expenses for you and your passengers if you sustain an injury in an accident.
Commercial vehicle insurance doesn't cover all costs related to an accident or theft. Insurers commonly exclude the following from coverage:
Important: Most commercial auto insurance policies don't cover goods or equipment stored inside a company car or commercial vehicle. Commercial inland marine coverage pays for theft or damage to these assets.
A car warranty helps protect you from the cost of unexpected car repairs, especially if they're the result of defective car parts. Warranties provide peace of mind and can save you thousands of dollars in repairs.
Quick Facts: A manufacturer's warranty provides comprehensive coverage for the first few years after you purchase a new car. An extended warranty is a product you can purchase to avoid surprise repair costs. Extended warranties aren't always worth the money.
A car warranty is a contract in which a vehicle seller or manufacturer promises to repair certain vehicle defects that occur within a predetermined time frame. Many vehicle manufacturers offer "bumper-to-bumper" coverage, including:
Your car warranty will cover most of your car's components, but warranties typically don't include coverage for:
Car warranties cover the repair or replacement costs related to vehicle defects within the specified time frame. If you notice any defects or issues with your vehicle, follow these steps:
Important: Keep up with the manufacturer's recommended maintenance schedule for oil changes, air filters, and tire rotations. Your manufacturer could deny your warranty claim if it identifies any neglect on your part.
Not all warranties are the same. Here are some of the most common types of car warranties, which provide different types of coverage:
Usually included with your purchase of a new vehicle, a manufacturer's warranty covers any defects. It typically provides coverage for up to three years or 36,000 miles.
A powertrain warranty covers vehicle components like the engine, transmission, and drive systems. Most powertrain coverage applies for five years or 60,000 miles.
A comprehensive manufacturer's warranty that covers any defects on your vehicle, from the front bumper to the back bumper. This is the warranty type your manufacturer will most likely include when you purchase a new car.
An optional warranty you can purchase from your manufacturer, dealer, or a third-party company. This warranty comes with added costs and may only include certain parts and defects. It typically lasts longer than a manufacturer's warranty.
When you purchase a CPO vehicle, you get more warranty protection than with other used cars. CPO vehicles are in good shape and have had regular maintenance. A CPO warranty may provide coverage for between six and 10 years, usually up to 100,000 miles.
An auto warranty and a car insurance policy both protect your vehicle and your finances, but they do it in different ways. A warranty covers defects in your vehicle, especially in the first few years after purchase, but excludes external damage from accidents and weather. Car insurance covers these hazards that a warranty doesn't.
| Feature | Auto Warranty | Auto Insurance |
|---|---|---|
| Primary Purpose | Protects against unexpected costs due to defects | Protects against damage and injuries from accidents |
| Who Provides It | Car manufacturers, dealerships, third-party companies | Car insurance companies |
| Coverage Items | Defective car parts (bumper to bumper) | Property damage and bodily harm from accidents |
| Trigger for Claim | Mechanical breakdown or parts defect | Car accident, weather damage, or qualifying event |
| Legally Required? | No | Yes |
| Coverage Duration | Up to 3 years or 36,000 miles | 6 to 12 months, renewable |
The purchase price of a new vehicle typically includes the manufacturer's warranty, so new vehicle owners don't have an added cost. But you'll have to pay extra if you want an extended warranty.
Average Cost: The average cost of a bumper-to-bumper extended warranty starts around $1,000 per year, but it could cost more depending on various factors.
Luxury and imported vehicles typically have higher warranty costs due to more expensive parts and specialized repairs.
Older vehicles with higher mileage generally cost more to warranty due to increased likelihood of repairs.
Comprehensive bumper-to-bumper coverage costs more than basic powertrain-only warranties.
Longer warranty terms with higher mileage limits typically have higher annual premiums.
Whether an extended car warranty is a good idea depends on your car's reliability, age, and your preferences. Consider these pros and cons:
A home warranty is a service contract that helps pay to repair or replace appliances and major home systems. You can buy one anytime and choose the coverage level that fits your needs.
Quick Facts: Home warranties typically pay to repair or replace kitchen appliances, HVAC, plumbing, electrical systems, washers, and dryers. Depending on coverage levels, home warranties can range from $15 to $80 per month. Warranties typically have service fees between $65 and $125 per technician visit.
A home warranty can provide peace of mind to new homeowners—especially if they're unsure about the age and condition of the appliances and home systems.
When you contact the home warranty company, it'll connect you with a partner service technician. Technicians are vetted, licensed, bonded, and insured.
When you're a new homeowner, your budget may be stretched. Repairing an air conditioner or fixing a broken washing machine is expensive. A home warranty provides added protection.
A home warranty has a fixed monthly cost, making it easier to work into your budget. Service fees are relatively low, so repair costs are more manageable.
A home warranty policy covers items or systems that stop working due to age, wear and tear, or mechanical issues. Warranties typically cover:
Although home warranties can protect your home's systems and appliances, they typically exclude:
Important: Home warranties cover wear and tear, mechanical breakdowns, and aging systems. In contrast, home insurance typically covers damage caused by natural disasters, theft, or vandalism. Together, they provide comprehensive protection.
Home warranties can cost between $15 and $80 per month. A basic plan that covers kitchen appliances will be cheaper than a comprehensive plan that protects appliances, electrical systems, and HVAC systems.
Example: If you have a home warranty that costs $600 per year and your ducted central air conditioning system breaks down (repair cost up to $2,000), your out-of-pocket cost would be $725 ($600 + $125 service fee). That means you'd save $1,275 compared to paying the full repair cost on your own.
Areas with a high cost of living usually have higher home warranty costs since parts and repair services are more expensive.
Larger homes often have more appliances and more complex HVAC systems, so home warranties tend to be more expensive for properties with more square footage.
Choosing a higher service fee, such as $100 or $125, means you may pay less for your monthly premiums.
Comprehensive plans with add-ons for pools, water heaters, or sprinkler systems cost more than basic appliance-only plans.
Many companies offer home warranty plans. Based on coverage, plan options, and cost, the following are some of the best home warranty companies available:
| Warranty Company | Plan Options | Monthly Premiums | Service Fees |
|---|---|---|---|
| 2-10 Home Buyers Warranty | Simply Kitchen, Complete Home, Pinnacle Home | $32–$52 | $65, $85, or $100 |
| AFC Home Warranty | Silver, Gold, Platinum, Diamond | $56–$97 | $75 or $125 |
| American Home Shield | ShieldSilver, ShieldGold, ShieldPlatinum | $30–$80 | $100 or $125 |
| Choice Home Warranty | Basic, Total Plan | $47–$55 | $100 |
| First American Home Warranty | Starter, Essential, Premium Plan | $52–$87 | $100 or $125 |
| Liberty Home Guard | Appliance Guard, Systems Guard, Total Home Guard | $45–$55 | $75–$125 |
| Select Home Warranty | Bronze Care, Gold Care, Platinum Care | $60–$64 | $75–$100 |
Financial experts recommend setting aside 1% to 4% of your home's value every year to cover maintenance costs.
Add this endorsement to your homeowners insurance to cover appliance repairs after electrical surges or mechanical breakdowns.
New appliances typically include a manufacturer's warranty covering defects for six to 12 months from purchase.
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