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 exis...

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent

UPDATED: Aug 30, 2020

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Things to Remember...

  • A business auto insurance company specializes in protecting vehicles that are essential to the successful operation of any business
  • Personal auto insurance will not cover vehicles that are used for commercial purposes
  • Business vehicles need the same coverage as personal vehicles including liability, collision and comprehensive, personal injury protection and uninsured motorist coverage
  • Insurance companies that specialize in commercial auto insurance vary in the types of businesses they insure
  • Business auto insurance is important for small businesses as well as large companies

A business auto insurance company specializes in protecting vehicles that are essential to the successful operation of any business.

There are several options for business auto insurance including per vehicle and fleet insurance. Personal auto insurance will not cover vehicles that are used for commercial purposes.

Compare quotes from different auto insurance companies using our FREE comparison tool with your ZIP code that will find the lowest cost for the required coverage.

Commercial Insurance Regulations

There are certain kinds of businesses that are subject to state and federal regulations for operating their vehicles.

For businesses that use third-party equipment such as rented or leased vehicles, there are non-owned policies required.

A company that offers auto insurance for businesses will specialize in knowing these regulations and applying them to each client to make sure they are in compliance.

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The Difference Between Personal and Business Auto Insurance

Business vehicles need the same coverage as personal vehicles including liability, collision and comprehensive, personal injury protection and uninsured motorist coverage.

There are several technical differences, however, for business auto insurance and a business auto insurance company will have the knowledge and expertise to arrange the right business coverage.

Business owners are more likely to be sued if they are held responsible for any damage or injury resulting from their business vehicles and drivers.

Even cheap liability auto insurance coverage can protect the business from great financial loss if it is ever sued. It will pay the losses that arise from alleged or real bodily injury, personal injury or property damage on the business premises or that arise from the business’s operations.

The protection covers:

  • The loss of service, cost of care and any restitution for a death that is the result of an injury
  • Property damage for loss of use of property and physical damage to property
  • Damages caused by a product or service provided by the company including lawsuits
  • Damages of borrowed vehicles and liquor liability

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Lower the Cost of Business Auto Insurance

Just as with personal auto insurance, the cost of business auto insurance can be reduced by following certain strategies.

  • Have a higher deductible. A deductible is the amount a business is willing to pay before the insurance company begins to pay. With a higher deductible, the amount of the premium will be reduced
  • Add safety and anti-theft devices. GPS tracking devices, alarms, air bags, and a company policy for using seat belts can reduce the cost of the premium
  • Employ only qualified drivers with safe driving records. This can significantly reduce premiums
  • Park the vehicles in a safe or protected place. The location where business vehicles are parked when they are not in use determines part of the cost of insurance. If the vehicles are left without protection in a high-risk neighborhood, the premium will be higher
  • Choose five-star safety rated vehicles. This will also significantly reduce premiums. Sports cars generally have higher premiums

Choosing Business Auto Insurance

Insurance companies that specialize in commercial auto insurance vary in the types of businesses they insure.

Some companies may specialize in the transportation of school children, and some may not insure this type of vehicle. Some may insure vans that carry equipment, but not buses.

The most obvious business that requires auto insurance is one that provides cars for their employees as part of their job. In this case, a company may have over ten cars to insure.

They will get a discount for fleet insurance. Because commercial cars are on the road most of the time, the insurance costs are higher than personal car insurance.

They may also carry expensive equipment or products that are valuable. If drivers have Commercial Driver’s Licenses, the cost will, in most cases, be discounted by 10 per cent.

To get the best discount for fleet insurance, it is good to get quotes from several insurance companies and compare the coverage and cost.

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A Checklist for Getting a Quote

When calling insurance companies to get a quote, the following things should be available:

  • The Declarations Page from the current auto insurance policy. Whether it is a Dec Page from personal insurance or previous commercial insurance, it will prove that the customer has maintained continuous insurance coverage. This could reduce the premium by 25 percent
  • The numbers of the driver’s licenses of all the drivers employed. With this, the insurance company can review their driving records in the state Department of Motor Vehicles. When they have this information, they can determine the risk factor
  • The Vehicle Identification Numbers (VIN) of all the vehicles used by the business

Business auto insurance is important for small businesses as well as large companies. It covers much more than personal insurance including protection from lawsuits for accidents or injuries.

Check the auto insurance options available with our FREE car insurance comparison tool now by entering your ZIP code.

A business auto insurance company specializes in ascertaining the risk factors for the use of automobiles in a business.

Quotes from different companies can be compared online using our FREE auto insurance comparison tool. Enter your ZIP code now.