Commercial Auto Insurance
How to Insure Leased Work Vehicles as a Contractor
Leased vehicles need commercial auto coverage with the leasing company listed as an additional insured/loss payee. Most leases require comprehensive and collision with specific deductible limits.
How do I insure a leased work truck or commercial vehicle?
When you lease a work vehicle, the leasing company retains ownership and has specific insurance requirements. They’ll typically require: commercial auto liability (usually $1M CSL minimum), comprehensive and collision coverage, themselves listed as additional insured and loss payee, and deductibles no higher than $1,000–$2,500.
The certificate of insurance issued by your insurer documents this — provide it to the leasing company before taking possession of the vehicle. Keep an updated certificate on file with them throughout the lease term.
Also consider GAP coverage on leased vehicles — if the vehicle is totaled and you still owe more than ACV, you may be responsible for the difference even after insurance pays.
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