Commercial Auto Insurance in Tennessee

If you own or run a business in Tennessee that uses vehicles for work, having commercial auto insurance is very important. Whether you're driving a car, truck, or van for deliveries, visiting job sites, or meeting with clients, this insurance safeguards your business from costly financial setbacks resulting from unforeseen accidents and mishaps.

In Tennessee, driving without adequate insurance can lead to fines and serious problems for your business. Commercial auto insurance helps cover damage, injuries, and other expenses to keep your business moving forward while giving you peace of mind.

What is Commercial Auto Insurance in Tennessee?

Commercial auto insurance in Tennessee is made for vehicles used for work—like making deliveries, hauling tools, or traveling to job sites. It’s different from personal auto insurance because it covers the extra risks that come with using a vehicle for business.

For example, if your work van gets in an accident while on the job, commercial auto insurance can help pay for damages and injuries. Personal auto insurance usually doesn’t cover events that happen while a vehicle is being used for work purposes. This is why business owners need a commercial auto policy to ensure their protection. Still, be sure to check with your insurer regarding which types of tasks may be allowable under personal auto policies, since this varies by carrier.

With GEICO’s commercial auto insurance, policyholders can also drive vehicles for personal use without needing a separate policy.

Who Needs Commercial Auto Insurance in Tennessee?

If you use your vehicle for any kind of business-related purpose—even just once in a while—you probably need commercial auto insurance. Because of this, business owners in many different industries need the right coverage to stay protected.

That’s why GEICO offers flexible commercial auto insurance, helping business owners across all types of work get the coverage they need at a price that fits their budget. Different types of business owners protected under GEICO’s commercial auto coverage include:

  • Electricians, plumbers, and HVAC workers: Carry expensive tools and need protection in case of accidents or theft.
  • Contractors like carpenters and painters: Travel often and haul materials, requiring coverage for their tools and any damage they might cause.
  • Landscapers and snow plow services: Trucks and trailers carry heavy gear, which needs special protection.
  • Caterers and food vendors: Deliver scheduled service and need protection in case something goes wrong on the road.
  • Long-haul truckers: Drive long distances and carry valuable cargo, so they need strong insurance that meets all legal requirements.
  • Other business types: Using your personal car for work errands or meetings can be risky. Your regular car insurance may not cover business use, so commercial insurance is often required.

Minimum Tennessee Commercial Auto Insurance Requirements

Coverage Type Minimum Requirement in Tennessee
Bodily Injury Liability $25,000 per person / $50,000 per accident
Property Damage Liability $25,000 per accident
Personal Injury Protection (PIP) Not required
Uninsured Motorist (UM) Not required
Underinsured Motorist (UIM) Not required
Other Mandated Coverages Not required

FMCSA and USDOT Compliance in Tennessee

The FMCSA (Federal Motor Carrier Safety Administration) and USDOT (U.S. Department of Transportation) are government agencies that create safety rules for businesses that use trucks or other vehicles for work, especially across state lines.

If your Tennessee business moves goods, hauls equipment, or drives long distances, you may need a USDOT number and must follow FMCSA rules. One important rule is having the right commercial auto insurance to protect your drivers, vehicles, and others on the road. This helps your business meet these rules and avoid fines, delays, or shutdowns.

Optional Commercial Auto Coverages & Add-Ons in Tennessee

State-mandated commercial auto insurance minimums in Tennessee provide the basic coverage required by law, such as liability coverage that mainly protects other drivers if you cause an accident. However, many business owners choose to go beyond these minimums by adding optional coverages for stronger protection.

These add-ons—like comprehensive, collision, and Medical Payments (MedPay) coverage—help cover damage to your own vehicles, injuries to your employees, and unexpected events like theft or weather damage. GEICO offers these extra options (and others) so business owners can better protect their employees, vehicles, and finance in addition to other drivers on the road.

Standard Commercial Auto Insurance Coverages in Tennessee

For most business owners, the best protection comes from a mix of state-mandated coverage and optional add-ons.

While the required coverage helps protect other drivers, add-ons give you extra protection for your own vehicles, employees, and business assets. The specific add-ons you choose will depend on your company’s needs and budget, but it’s a good idea to carry at least some extra coverage to make sure your own interests are protected, too.

For policyholders in Tennessee, a standard commercial auto insurance plan typically includes the following coverages:

Types of Vehicles Covered in Tennessee

Vehicles used for business can vary depending on the industry—some people may use their personal cars to meet with clients, while others operate long-haul trucks that move cargo across many miles. GEICO understands these diverse needs, which is why we offer coverage for a wide range of vehicles.

Whether you're hauling equipment in a work van, delivering products to customers, or serving meals from a food truck, GEICO has flexible commercial auto insurance to help protect your business on the road:

  • Business Vehicles: Cars, SUVs, or pickups used for deliveries or errands.
  • Contractor Vehicles: Work vans or trucks that carry tools and supplies.
  • Delivery & Service Vehicles: Vehicles used to bring goods or visit customers.
  • Food Trucks & Catering Vehicles: Food trucks, catering vans, and vehicles used for food delivery are protected against physical damage and damage to permanently attached equipment. However, food spoilage, foodborne illness, product liability (e.g., hot beverages), equipment breakdowns, and allergic reactions are not covered. Food-related illnesses fall under General Liability, as the customer is considered “injured” by the business.
  • Heavy Trucks: Big vehicles, tractor-trailers, dump trucks, box trucks, flatbeds, and cargo & freight
  • Owner-Operator Trucks: Trucks or vans run by independent drivers.
  • Non-Trucking Liability: For when your truck is not carrying cargo or on dispatch.
  • Specialty Vehicles: Unique vehicles like refrigerated trucks or buses.

Factors Affecting the Cost of Tennessee Commercial Auto Insurance

In Tennessee, the average cost of commercial auto insurance is around the national average. The state’s rates stay in line with the national norm due to similar insurance requirements and claim trends.

However, no matter these averages, your personal rate will be driven more by specific factors, such as your industry, types of vehicles, and coverage levels—so your actual cost may be much higher or lower than the average. The size of an insurance settlement usually doesn’t affect your insurance costs, but factors like whether you were at fault in an accident do.

When determining your premium, insurance companies typically consider things like:

  • Your Job or Industry: Some jobs, like construction or delivery, typically experience higher rates.
  • Type of Vehicle: Bigger vehicles or ones used to carry goods often cost more to insure.
  • Driving Record: Drivers with no accidents or tickets usually pay less.
  • How Much Coverage You Want: Choosing higher coverage limits will cost more but may give better protection.

Why Choose GEICO for Tennessee Commercial Auto Insurance?

In addition to offering a wide range of discounts, GEICO is the preferred provider for commercial auto insurance in Tennessee for many other reasons.

These include a decades-long reputation for reliable support and quick claims reimbursement, unmatched flexibility with coverage options for different industries and vehicle types, and payment plans that fit various budgets. GEICO also combines extensive national resources with personalized service through local agents who truly understand the needs of Tennessee business owners.

No matter what’s most important to you, GEICO offers the support and adaptability to meet your unique needs.

How to Get a Tennessee Commercial Auto Insurance Quote from GEICO

With GEICO, getting a free commercial auto insurance quote is quick and easy. It can be done either online or by phone, and it only takes a few minutes. You will just need to share a few simple details to receive your personalized quote. Without the right coverage, your finances, employees’ well-being, and entire business could be at risk—get your free quote today!

Tennessee Commercial Auto Insurance FAQs

  • What are the penalties for lack of coverage on commercial vehicles in Tennessee?

    In Tennessee, operating a commercial vehicle without the required insurance can result in fines and potential suspension of your vehicle registration.

  • Can I add employees as drivers to my commercial auto insurance policy?

    Yes, you can add employees as drivers to your commercial auto insurance policy by updating your policy with your insurance provider.

  • Does commercial auto insurance cover vehicles outside of Tennessee if I travel for business?

    Yes, commercial auto insurance typically covers vehicles used for business purposes outside of Tennessee, but it's important to confirm with your insurer to ensure coverage in other states.

  • Does my policy cover equipment or inventory stored in my business vehicles?

    Commercial auto insurance can cover equipment or inventory stored in your business vehicles, especially with add-ons like cargo and equipment coverage, which is important for delivery services and contractors.