Why use company car insurance for your business?

Both new and seasoned business owners will benefit from a company car insurance policy for their work vehicles. The biggest benefit between company car insurance vs. personal coverage is that you can claim company car insurance payments on your business taxes. Enter your ZIP code below to compare company car insurance quotes and save even more money on your company car insurance costs.

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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: Aug 14, 2020

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Here's what you need to know...

  • Depending on your industry there are many types of business vehicles that you might use in a day’s time, as well as many types of commercial car insurance to cover them
  • Seasoned business owners may benefit from using company car insurance for business
  • Maintenance to the car and even the gas you use for business reasons can also be deducted as business expenses from your company’s taxes

Interested in buying a policy for your company car? If you have just started your own business, you probably already know about all of the multitudes of expenses that you’re in for during the first year. Even seasoned business owners may benefit from using company car insurance for business.

Even seasoned business owners may benefit from using company car insurance for business.

Many new business owners watch the funds rapidly decline and begin to panic. Their first thought is to start cutting corners where they can. One might even consider cutting down on company car insurance. This could be a very costly mistake.

Find free online car insurance quotes today! Enter your zip code above to get started!

Questions about Company Car Insurance

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What if there was an accident that totaled your business car? Would you be able to replace it out of pocket? Few small businesses can afford to give away that much capital at once.

There are many types of business vehicles that you might use in a day’s time, depending on your industry, as well as many types of commercial car insurance to cover them.

If you are a repair man you may use your company van to transport all your tools and necessary equipment to a new location. If you deal with some big clients you may well have a limo as a company car in order to transport them around.

Perhaps you just run around town from time to time to meet with clients in your office vehicle. Whatever your business is, most business owners will need a reliable and well-insured vehicle for professional use.

Free Car Insurance Comparison

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

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Free Car Insurance Comparison

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

 Secured with SHA-256 Encryption

Does Company Car Insurance Really Save You Money?

One good reason to get company car insurance or a business auto policy is the fact that it can save you money! We’re not just talking about covered claims.

Insurance on the car can be counted as a business expense on your taxes. Getting a break on your taxes, even a small one, can be very important to a new and emerging business.

Even that oil change you just had done can be written off! Just remember to keep good records of your mileage and car expenses just in case the IRS ever comes knocking wanting to see your receipts.

If you are looking for more ways to save on company car insurance, be sure those employees you hire have squeaky clean driving records.

You will be paying for their coverage, which is partly based on their personal auto history. Make sure your employees are very responsible. If they get into an accident while driving the company car, the company insurance rates will go up, not just their private rates.

This fact can actually cause some employees to drive with less caution than they would take with their own car.

Accidents do happen, but carelessness or reckless driving can be avoided by educating your employees on proper company vehicle care and defensive driving.

Be sure to keep track of each employee’s vehicle mishaps. Some insurance companies will give you a discount if your drivers attend a defensive driving course.

The Online Search for Company Car Insurance

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There are plenty of discounts you can inquire about. If you are insuring a high number of vehicles, you can ask about fleet insurance which will give you discounts for multiple cars.

If the car is driven less than 10,000 miles a year, you can also inquire about low mileage discounts.

The key to finding the right business car insurance at the right price is to make sure you are getting all the coverage that you need. Perhaps liability coverage will be enough for your car, and you can drop full coverage.

The Internet makes the process easy these days. Instead of spending the entire day on the phone getting rates from multiple companies, with a few clicks of your mouse, you can have a number of quotes from different companies in a few minutes.

Remember not only to look at the dollar signs but to also read the fine print of each contract so that you can understand exactly what the policy covers and what it doesn’t.

Online quotes are just previews of the real contract, which will be mailed to you or signed in an office.

Running your own company is a big responsibility. Ensure that your company vehicle, be it one car or an entire fleet, is properly insured. Why not search for company car insurance quotes right now by entering your zip code below and using our online comparison tool?

References:

  1. https://www.geico.com/commercial-auto-insurance/
  2. https://www.irs.gov/businesses/small-businesses-self-employed/irs-audits
  3. https://www.allstate.com/auto-insurance/safe-driver-rewards.aspx
  4. http://kidshealth.org/en/teens/driving-safety.html
  5. https://www.allstate.com/tools-and-resources/car-insurance/liability-car-insurance-cover.aspx

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