Commercial motor insurance is essential for businesses that rely on cars, utes, vans, trucks or fleets for their daily operations. Whether you’re a tradie driving between job sites, a delivery business on the road all day, or a company running multiple vehicles, understanding the cost of commercial motor insurance in Australia helps you budget, reduce risk and choose the right level of protection.

Below, we break down typical pricing, what influences your premium, and the key cover options available.

What Is Commercial Motor Insurance?

Commercial motor insurance protects vehicles that are used for business activities, covering risks such as collision damage, theft, liability, and accidental loss. It applies to:

• Utes
• Vans
• Sedans used for business
• Trucks and light commercial vehicles
• Fleets of multiple vehicles. More info on fleet insurance here

It ensures your business can stay operational even if a vehicle is damaged or taken off the road.

How Much Does Commercial Motor Insurance Cost?

The cost of commercial motor insurance in Australia varies depending on several factors. However, as a general guide:

Typical Commercial Motor Premium Ranges

• Utes, vans and business cars: around $900 – $2,500 per year
• Small trucks (light commercial): around $1,500 – $4,000 per year
• Specialist vehicles (tippers, refrigerated trucks, plant carriers): can range from $2,000 to $7,000+
• Fleet policies: pricing depends heavily on vehicle count and claims history

These figures are estimates only, as each business has unique risks.

What Affects the Price of Commercial Motor Insurance?

Several important factors influence how much you pay:

1. Vehicle Type & Value

More expensive or specialised vehicles cost more to insure due to higher repair and replacement costs.

2. Business Use

Vehicles used for deliveries, construction, trades, or regular site travel face higher risk than occasional business use.

3. Location

Areas with higher accident or theft rates may attract higher premiums.

4. Claims History

A business with frequent vehicle claims typically pays more.

5. Driver Age & Experience

Younger or less experienced drivers may increase the risk profile.

6. Security Measures

Locked garages, GPS tracking, dash cams or immobilisers can reduce premiums.

7. Level of Cover Selected

Options include:

• Comprehensive
• Third Party, Fire & Theft
• Third Party Property Only

Comprehensive cover costs the most but provides the widest protection.

What Does Commercial Motor Insurance Cover?

Comprehensive policies typically include:

• Damage to your vehicle
• Theft or attempted theft
• Damage to other people’s property
• Fire, storm, hail or accidental loss
• Windscreen or glass damage (sometimes included, sometimes optional)
• Towing and emergency assistance
• Optional hire car after an accident

Additional options may include:

• Protected no-claim discount
• New replacement for recently purchased vehicles
• Accessories and modifications
• Signage and fit-out
• Downtime or loss of income cover

How Businesses Can Reduce Their Commercial Motor Premiums

To help manage costs, businesses often:

• Implement driver training and monitoring
• Install GPS or dash cameras
• Park vehicles in secure locations
• Maintain a clean claims history
• Bundle multiple vehicles under a fleet policy
• Regularly review and update cover limits

Small adjustments in how vehicles are used and stored can lead to long-term savings.

Why Commercial Motor Insurance Matters for Businesses

A vehicle off the road can directly affect a business’s productivity, revenue, and service commitments. Commercial motor insurance ensures:

• Fast repairs
• Protection against major out-of-pocket costs
• Ability to continue business operations
• Peace of mind for owners and drivers

For many businesses, a single accident could significantly disrupt operations, making adequate cover essential.

Need Help Understanding Your Commercial Motor Insurance Costs?

Pricing varies for every business, but reviewing your vehicle types, usage, risks and driver profiles gives a clear picture of what you should expect to pay.

How an Insurance Broker Can Help You Understand Commercial Motor Insurance Costs

Commercial motor insurance pricing can vary significantly based on your business operations, the vehicles you use, and the risks involved. An insurance broker helps simplify this process by assessing your specific needs, explaining the cover options clearly, and identifying the most suitable protection for your business vehicles. Instead of trying to guess what you need, a broker ensures your policy is correctly structured and free of gaps that could leave you exposed.

Why Businesses Choose Morgan Insurance Brokers

Morgan Insurance Brokers specialises in helping Australian businesses understand their commercial motor insurance needs. By reviewing your vehicle usage, claims history, security measures, and risk profile, we provide clear guidance on what you should expect to pay, and what level of cover will properly protect your operations.

We make the process simple by:

• Explaining your cover options in plain language
• Structuring policies based on the way your vehicles are used
• Comparing options on your behalf
• Helping you avoid paying for unnecessary extras
• Supporting you throughout the claims process

If you want to know how much commercial motor insurance should cost for your business, whether you operate one ute or an entire fleet,  Morgan Insurance Brokers can provide clear, tailored advice and a competitive quote.