Finding the Best Insurance Policy for Your Business

The best car insurance for your business is one that will cover every employee driving for you and protect your assets. Specialized vehicles like snowplows and ice cream trucks may make your business insurance higher than expected.

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Zaneta Wood, Ed.S. has over 15 years of experience in research and technical writing bringing a keen understanding of data analysis and information synthesis to reach a wide variety of audiences. She studied adult education and instructional technology at Appalachian State University as well as technical and professional communication at East Carolina University. Zaneta has prepared technical p...

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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: Jan 28, 2021

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Here's what you need to know...

  • If you have a small business or a large one and your employees drive a company vehicle, you will probably need to get commercial auto insurance
  • Most personal policies will not cover your business-related accidents so you will have to purchase specific coverage for businesses
  • There are so many aspects to insuring business vehicles, it may be the smartest to speak with an agent to figure out exactly what you need

The best insurance policy for your business is one that will cover every employee who will be driving for you and protects your financial assets.

Your policy will vary according to the type of business that you have.

Investigate affordable business car insurance rates right here by entering your ZIP code in the FREE quote tool!

Type and Size of Business

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Before you decide on an insurance policy for your business vehicles, determine the size of your business.

If you are a one man show and drive one car for both personal and business use, your insurance needs will differ from a large company that has multiple vehicles and drivers.

Not all insurance companies provide business car insurance policies. Some specialize in certain types and sizes of businesses.

If you have special insurance needs, some common insurance companies may choose not to take on the extra risk. You may need to seek out a company that specializes in your particular needs.

The type of vehicles you use in your business will also determine what types of insurance you need.

If you drive just a car for your business, your insurance needs will be fairly basic.

Other types of vehicles that may need to be insured are:

  • snowplows
  • buses
  • tow trucks
  • dump trucks
  • street sweeper
  • box trucks
  • tank truck
  • semi-trucks

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Types of Business Car Insurance Coverage

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Some of the auto insurance coverage available for businesses is similar to personal coverage. Liability coverage is required for all drivers and covers you if you are the cause of an accident and damage to the other party.

Business liability coverage also pays for any defense costs if you are taken to court.

To help cover damages that occur to your own vehicle there is comprehensive coverage as well as collision coverage.

Coverage for uninsured/underinsured motorists is recommended since almost 14 percent of the population is driving without proper insurance coverage, say the specialists at the Insurance Research Council.

One of the nice things about a business car insurance policy is that you can tailor it to your specific business needs.

You can list each vehicle separately on your policy. You can choose different types of coverage for each one, which is ideal if you have multiple vehicles that are used by your business for different things.

Besides the basic types of insurance, being a business owner may necessitate additional coverage. If you have a truck business and are an owner operator, you will need special coverage.

Speak with your insurance provider as to what products you will need to make sure you stay fully protected.

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Types of Drivers

Your policy may differ according to the types of drivers you hire.

It is in your best financial interest to hire employees with solid records. If you hire someone who has a history of accidents, not only will your insurance premium be high but you also should be concerned with them driving your vehicles.

If you own a business that delivers food, it may be tempting to hire teenagers because they often are willing to work for less money and they are willing to work the later hours.

However, hiring teenage drivers will increase your rates as well.

You would pay less if you were able to hire drivers of more mature ages who have a clean driving record.

The National Highway Traffic Safety Administration reports that drivers who are aged between 16 and 20 have three times the accident rate as other drivers.

If you own a commercial trucking company, try to hire drivers who have their commercial driver’s license. In other cases, many insurance providers will give you a discount on your policy for hiring these drivers.

Non-Owned Vehicle Coverage

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As a business owner, you may want to consider getting coverage for employer non-owned car liability. This coverage is meant for employers whose employees drive their own cars for business use.

You may think that the driver’s own personal car insurance policy will cover him or her in the event of an accident. However, most personal policies do not cover business use, if the employee does cause an accident, they may find themselves without coverage.

If the accident happened while working for you, in most instances you could be sued for the damages that occurred.

Purchasing non-owner liability coverage will help cover you in these situations. The coverage is not that expensive and is the ideal way to make sure your business revenues stay protected.

Nonowner liability coverage should also cover you in the event you are ever driving a car that is not owned by your own company.

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Other Considerations

Savings written on a graph with a calculator beside it.

Business auto insurance is not always straightforward.

There are different ways to find an insurance company that will be able to insure your business vehicles.

You can see if the provider with whom you insure your personal vehicles offers business insurance which may garner you a discount on your policy.

You have enough to worry about as a business owner without having to worry about your car insurance and whether you have the appropriate coverage.

An agent will be able to evaluate your business and recommend the policy that is the best for you and your bottom line.

Begin your inquiry for car insurance rate quotes by placing your ZIP code into the FREE available quote box!


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