Auto Insurance for Real Estate Agents (How to Save)

Auto insurance for real estate agents may not seem like a major concern, but if you don't have the right coverage, you might not be covered at all. Personal auto insurance policies generally will not cover real estate agents who use their personal car while working. Read more to find out if you need a business use addition or a commercial auto insurance policy to completely cover yourself while working.

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Mathew B. Sims is Editor-in-Chief and has authored, edited, and contributed to several books. He has been working in the insurance industry ensuring content is accurate for consumers who are searching for the best policies and rates. He has also been featured on sites like UpJourney.

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years (BBB A+). He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. He reviews content, ensuring that ex...

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent

UPDATED: Jul 18, 2021

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Things to Remember

  • Real estate agents who use their own personal vehicle will likely need more than just their personal auto insurance coverage.
  • It doesn’t matter if you are an employee or an independent contractor working for a real estate agency if you use your personal vehicle you’ll need to inform your auto insurance company.
  • Almost all personal auto insurance policies disclude business use of the vehicle meaning you won’t be covered if there is an accident.

Real estate agents drive a ton while they are working. They drive to their listings, they drive to showings, they drive to meet clients, and they may even drive clients to see certain homes.

Auto insurance for real estate agents is very important, but if you’re using your own vehicle, you may not even be covered.

Auto insurance laws dictate that all company-owned vehicles need to be covered by a commercial auto insurance policy. If you own your own real estate business, you could be using your personal vehicle for business and personal uses. Do you need extra coverage?

Some real estate agents drive a company car that would be covered under a commercial auto insurance policy.

However, many real estate agents drive their own personal vehicles, and if they don’t notify their insurance company and purchase extra coverage, they could be left uncovered in the event of an accident.

If you’re ready to buy auto insurance for real estate agents, enter your ZIP code above to compare auto insurance quotes for real estate agents.

Do real estate agents need business auto insurance?

There is a lot of confusion when it comes to the type of auto insurance real estate agents need. Typically, auto insurance companies do not allow you to use your personal auto insurance coverage while you are working.

In other words, if you use your car for business, your personal auto insurance policy will not cover you while you are working. This increases the risk for the insurance company, and they require additional coverage if you want to use your personal vehicle for business purposes.

However, according to the Insurance Information Institute (III), you need some of the same coverages for your business vehicle as you do for your personal car. View the table below to get a better idea of what insurance companies view as business and personal use.

Personal vs Business Auto Insurance Uses
Personal Auto InsuranceBusiness Auto Insurance
Driving to pick up lunch for you and your co-workersDriving to deliver food to paying customers
Driving to your job siteHauling tools and equipment to your job site
Going on weekend road tripsMeeting work clients and visiting job sites
Driving friends to the airportDriving paying customers to the airport
Using your car for business less than 3 times per monthUsing your car for business 500 miles a week or more
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At the end of the day, real estate agent auto insurance is not all that different from food delivery auto insurance. Both jobs require a lot of driving, and both jobs typically require the use of a personal vehicle.

In this case, real estate agents would need to get business use auto insurance to ensure they remain covered while working. 

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Do real estate agents need business auto insurance or commercial auto insurance?

A lot of websites and informational materials use business use and commercial auto insurance interchangeably. However, these two types of coverage are not the same, but both could cover real estate agents’ insurance requirements.

Business use auto insurance is just for use of your personal vehicle while you working and driving around for your job as we have already discussed. This differs from commercial auto insurance. Commercial auto insurance is purchased by a business to protect vehicles owned by the business.

You could own your own real estate business and have a commercial auto insurance policy to cover the car you use for work, but typically these auto insurance policies are used to cover a fleet of vehicles.

Is commercial auto insurance for real estate agents expensive?

The cost of commercial auto insurance is pretty reasonable, but the overall cost does depend on the type of vehicle you want to insure.

Take a look at the table below to get an idea about the average costs of commercial auto insurance based on the type of vehicle you want to insure for your business.

Annual Commercial Auto Insurance Costs by Vehicle Type
Car TypeMinimum Annual Commercial Auto Insurance RatesMaximum Annual Commercial Auto Insurance Rates
Car$600$2,400
Semi$8,000$12,500
Cargo/Delivery Van$3,300$6,200
Limo$4,000$6,000
Cab$5,000$10,000
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As you can see commercial auto insurance is not all that expensive, but it is crucial in order to protect your business in the event of an accident where you could be held liable for damages.

However, unless you own your business you probably don’t need to purchase a commercial auto insurance policy. Speak with your agent to see if you can add business use to your personal auto insurance policy.

What happens if I don’t tell my insurance company I am using my car for work?

Lying to or omitting information from your auto insurance company is a bad idea.

Real estate auto insurance requirements dictate that you carry coverage, but if your insurer does not know that you are using your vehicle for business purposes they can deny your claims in the event of injury or even drop your insurance coverage completely.

You don’t want to be caught driving without insurance. You can be ticketed and face higher auto insurance rates in the future when you try to buy new coverage.

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How can I save money on real Estate agent auto insurance?

Speak with your insurance agent for useful tips about the potential discounts you are eligible for.

Easy discounts that you are probably already eligible for are safe driver, multi-policy, and loyal customer. You won’t get a great discount without talking to your auto insurance agent and asking about ways you can save.

Real estate agent and rideshare insurance are not all that different. Especially since both drive other people around at various times.

The last thing you want is for someone to get hurt while you are driving them in your car. If you don’t have the proper auto insurance coverage, you could be on the hook for their medical bills.

Compare auto insurance quotes for real estate agents today. Enter your ZIP code below to see auto insurance rates for real estate agents.

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