Finding Affordable Business Car Insurance

Finding affordable business car insurance quotes can be made simple with online comparison tools. While no one wants to pay more than necessary for affordable business auto insurance online, you need to make sure that you have the right amount of coverage to protect your business assets.

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A former insurance producer, Laura understands that education is key when it comes to buying insurance. She has happily dedicated many hours to helping her clients understand how the insurance marketplace works so they can find the best car, home, and life insurance products for their needs.

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Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Jo...

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Reviewed by Joel Ohman
Founder & CFP®

UPDATED: May 26, 2021

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Here's what you need to know...

  • As a business owner, there are many different kinds of insurance coverages you need.
  • Bundling business auto insurance with your other coverages is a good way to save money.
  • Shop online through comparison tools to find the right company for all your business insurance needs.
  • Be sure to check out the reputation of any company you consider through independent rating websites.

Whether you have one employee or a hundred, you need the right insurance for your business. If you use vehicles at all in the course of your business, you’ll need car insurance.

Of course, one of the basic tenets of good business is to minimize expenditures while maximizing income. So, how can you keep business car insurance costs down? Here are some simple tips to find cheap car insurance for business.

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Combine with Other Insurance

Chances are, you already have insurance for your business. If you own property, there are many kinds of insurance you’ll need to consider:

  • You’ll need insurance on the building
  • You usually have some sort of general business insurance to cover your equipment and merchandise
  • You also need a general liability policy to protect from lawsuits in case a customer is injured on your premises
  • You’ll want worker’s compensation if you have employees

Usually, businesses will have these, as well as other policies the specific business needs, all supplied by the same insurance provider.

This is because it is usually much more cost effective to get them all from one company than to scatter them around. Insurance companies often give a bulk discount to all the policies you buy from them.

You’ll likely benefit with a substantial discount from a bulk or multi-policy discount if you have several policies with the insurer.

It makes sense to get your business car insurance from the same insurer you have your other business policies.

Another benefit is that they should already have all the information about your business. This will save you from having to provide it again.

In addition, keep in mind that business car insurance only covers the vehicle itself and the driver. It does not cover equipment or merchandise being transported in the vehicle.

Having all your insurance with the same company can help ensure that you do not have any gaps in coverage, as one of your general purpose policies will cover the property in the vehicle.

Of course, it’s possible that the company you have your general business insurance with doesn’t provide the kind of business car insurance you need.

If you have to look elsewhere for your business car insurance, look for companies that can supply all your insurance needs so that you can take advantage of these bulk discounts.

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Deals with Professional Organizations

Another avenue you can pursue to find cheap car insurance for business is professional organizations. Sometimes you can buy insurance through these.

This might be a small business support organization or an organization, which specializes in your kind of business. If you aren’t sure whether your group offers insurance, ask the leadership of the group.

Even if they do not offer insurance, they may be able to provide excellent recommendations for insurance providers, as the people in these groups probably have similar insurance needs to yours.

Compare Rates

Another smart way to find just about any kind of insurance is just to comparison-shop. Use your Internet search engine to find several companies that offer business car insurance in your area and copy down websites.

Then go to those sites and get quotes.

Before doing so, gather all the information they are going to ask for so that you can provide it quickly. This would be things such as:

  • Legal name of your business
  • Number of vehicles and the VIN for each
  • Number of employees and the number of drivers
  • Names and drivers’ license numbers of the employees that will be driving
  • Your business SIC code
  • Exact type and levels of coverage you want

By having all this information ready to go, you can speed up the process. Once you have several quotes, compare them side-by-side. Do not look just for the lowest price, but look for the best value for the levels of coverage they offer.

Remember to evaluate your deductibles, suggests Insure U. Your price will depend quite a bit on the levels of the deductible. Also, get quotes for all your general business insurance while you are at it if the company offers it.

You might find a better overall deal for all your insurance needs.

Add a Rider to Personal Insurance

If you run a business from your home and just use your personal vehicle for your business needs, you still need business car insurance.

You might assume your personal auto insurance policy will cover you, but this is not always the case, warn the experts at the Insurance Information Institute.

Some personal auto insurance policies specifically exclude coverage if the car is being used for business, with the exception of commuting. If you are using your personal car for deliveries, errands, etc., you might be driving without coverage and not realize it.

The other problem is that you aren’t protecting your business. If you cause a wreck while on company business, your policy might pay for the damages, but if the other driver sues your business, your personal policy will not pay for your defense.

It’s a bit of a murky area and one that could be financially devastating.

Fortunately, there is often a way to cover your personal car very cheaply when you are using it for business. Many car insurance companies will sell you a rider to your personal policy that covers you for business driving.

A business coverage rider added to your personal coverage causes an average increase on your policy of about 10 percent.

This is far cheaper than any business auto insurance stand-alone policy.

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Do Your Homework

No matter what insurance company you choose to go with, do a bit of research about them to make sure they are a good partner to have on your side when it comes to protecting the financial assets of your company.

After all, if a company is going to be nothing but headaches, it isn’t worth any savings.

The Internet is a great source for this information. Check out the website of Department of Insurance for your state. Each state will list the companies, which can legally sell insurance in their state.

They also provide a lot of information about the companies, like their financial assets. Perhaps one of the most telling pieces of information is the complaint ratio.

This lists the number of complaints as well as the ratio of complaints as compared to the number of policyholders. If the company you are looking at has a high number of complaints compared to other providers, it might be a sign to eliminate them from your list.

You can also get general information about commercial auto insurance in your state or check out sites like A.M. Best for financial strength ratings and J.D. Power & Associates for customer satisfaction ratings.

Do not forget about personal references as well. Ask other business owners you know if they have had any dealings with the company you are considering.

Get the Right Level of Coverage

While no one wants to pay more than necessary for car insurance for their business, you need to make sure that you have the right amount of coverage.

Businesses are more likely to be sued than private individuals are, so you need to ensure you have an adequate amount to cover a possible lawsuit. You also have employees to consider. You need to protect your livelihood and of those that depend on your business.

Because of the higher likelihood of a lawsuit, the recommended level of liability for businesses is higher than for personal insurance.

You should carry at least a million dollars of liability, says

However, your particular business needs might require even higher levels. You might think you are saving money by carrying lower levels of coverage, but if your employees are involved in an accident that results in a lawsuit, you’ll find that it doesn’t save money in the long run.

Another option is an umbrella liability policy for your business. This provides an extra layer of coverage for both your car and property liability policies.

You might also be tempted to do without comprehensive and collision coverage to save money on your business car insurance. This is certainly an option if you own your vehicles outright.

However, if you don’t carry these, you’ll need to have significant money set aside that can be used for repairs on your company vehicles or to purchase replacements if they can’t be fixed after an accident caused by one of your employees.

Many business owners wonder if they should carry medical coverage on their business policies. This will depend on the levels of coverage you carry on your other policies.

Often worker’s compensation policies will cover injuries from car accidents that occur on the job. If this is the case, medical coverage is probably redundant. Talk to your insurance agent to be sure you are covered.

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