Is researching affordable business auto insurance worth the time for a company?

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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insuranc...

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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 and Safeco. He reviews content, ensuring that ex...

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent

UPDATED: Oct 26, 2021

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Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.

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Here's what you need to know...

  • Each state requires a minimum of auto insurance coverage
  • Commercial vehicle insurance is different than personal auto insurance
  • It’s always a good idea to research at least three insurance companies before making a final decision

According to E-Insurance’s online resource site, as many as one in four workplace deaths result from car accident incidents.

Not surprisingly, anytime a business becomes involved with events where damage or bodily injury occurs, the assets of the business may be placed at risk.

As state law requirements mandate minimum auto insurance coverage for individuals and businesses, businesses can further reduce costs by finding affordable auto insurance coverage.

With the range of auto insurance coverages and rates available in the marketplace, it’s in the best interest of a business to research any existing coverage options.

Enter your zip code into our FREE auto insurance search tool above to find affordable rates for your business.

Commercial Vehicle Insurance

Much like personal auto insurance coverage, a business or commercial vehicle plan protects against damage to vehicles, property, personal injury claims and liability protection.

Cheap commercial auto insurance is available for different types of businesses, a few which include LLCs, partnerships, corporations and sole proprietorships. Your company can qualify for cheap commercial auto insurance.

Depending on the type of company a business runs, the vehicles used can vary in terms of standard automobiles versus vans versus trucks or construction-based equipment.

Commercial insurers offer coverage types based on the class of vehicle used by a company so plan rates and coverage options can vary considerably.

Any company that owns or leases vehicles should consider purchasing from a good commercial auto insurance company, even if a company only has one vehicle in total.

Unlike personal auto insurance coverage, commercial plans are designed to protect a company’s assets as well as insure against bodily injury and damages.

For companies that specialize in transporting and delivering materials or cargo, an affordable commercial insurance plan can greatly reduce the costs involved with protecting the most important parts of the business.


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Company Car Versus Personal Car Usage

In general, business auto insurance coverage rates are usually higher than those charged for personal policies.

Since the insurance industry profits by minimizing the risks insurers take on, the increased risk liability associated with businesses accounts for the larger premium costs.

Business insurance companies may also charge higher premium rates in cases where a company’s employees use personal vehicles for business use on a regular basis.

This may be the case for companies that employ sales personnel, provide delivery services or run business-related errands on a daily basis.

With volunteer-run businesses, most business insurers won’t cover damages or injuries involving employee-driven company vehicles so a different type of insurance coverage may be required.

A business auto insurance plan’s primary purpose is to protect a company from liability, so any personal liability caused by an employee may not be covered under an existing policy.

Employees may not be able to recoup repair or replacement costs when using personal vehicles for business purposes.

As different auto insurers have different policy conditions and rate plans regarding the use of personal vehicles for business purposes, it’s best to research the various insurance options available before deciding on the type of coverage a company needs.

Business Insurance Protections

When researching available commercial auto insurance options, it’s important to consider all aspects of how a company uses its vehicles for business use.

By covering all bases, companies can be sure they have adequate protection should an incident result in litigation proceedings.

Business insurance protections not only pay up to coverage plan limits but may also pay for any legal fees should a company have to go to court.

With the range of insurance options to choose from, companies can purchase customized coverage plans that include different forms of insurance protection.

The most common types of coverage for business vehicles include:

  • Collision
  • Comprehensive
  • Liability
  • Personal injury protection
  • Uninsured/ underinsured motorist protection

As with personal auto insurance plans, a company also has the option of adding additional features such as loss of earnings coverage, roadside assistance, and death and dismemberment coverage.

To ensure adequate coverage protections, business owners should calculate the frequency of vehicle usage since some insurers will not cover accidents that occur outside business hours.

Companies that haul cargo across state lines are not only subject to state law vehicle regulations, but must also follow regulations put in place by the Department of Transportation.

In most cases, additional insurance coverages are required since these company vehicles operate in different state jurisdictions.

Cost Considerations

When determining a company’s premium rate charge, insurance companies consider different factors that affect a business’ risk potential.

Some of the factors considered include:

  • The location of the company
  • Number of drivers
  • Coverage amounts selected
  • Driving records

Any of these factors can affect the premiums a company pays per year.

If one or more drivers within a company’s fleet have poor or high-risk driving records, the premium rates charge will be significantly higher than if all the company’s drivers have clean driving records.

A company’s location also determines the level of risk involved with insuring its vehicles. So, a company located in a dangerous part of town will pay higher premium rates than one situated in a more affluent area.

When considering all the factors involved with purchasing needed insurance protections, companies would do well to list their specific insurance needs and compare company plans in order to find the most affordable insurance options.

Our FREE auto insurance comparison tool can help you find affordable rates when you enter your zip code below!

Free Auto Insurance Comparison

Enter your ZIP code below to view companies that have cheap auto insurance rates.

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