Workers’ Comp Car Insurance

Workers' comp car insurance is determined by the type of work your employees do in conjunction with how much they make. Without workers' comp insurance your company is financially responsible for any accidents or injuries that occur.

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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 22, 2021

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Here's what you need to know...

  • Workers’ compensation is required in all 50 states
  • If you don’t have workers’ comp insurance, then your company is financially responsible for any accidents or injuries that occur
  • The cost of workers’ comp insurance is determined by the type of work your employees do in conjunction with the amount of money that each employee makes

As a business owner with employees, you will be required to carry workmen’s comp insurance. This is the law in all 50 states, although, some states will allow small businesses with less than three employees go without workers’ comp insurance.

If you are exempt from these insurance laws, this doesn’t mean that you are exempt from your responsibility if an employee is injured, becomes ill or is killed while on the job.

How does a small business get workers’ comp insurance? Protect your business with the right type of insurance coverage! Enter your zip code above to get started now!

Workers’ Comp Car Insurance

 

Commercial car insurance will cover any damages caused by the employee and possibly some of the medical costs too, but it won’t cover the lost wages for your employee.

What does workers’ comp car insurance cover? Workers’ comp insurance is not just for the protection of your employees, it is for your protection as well. It covers the medical costs of any injuries received on the job, the cost of lost wages and pays survivor benefits to the spouse or family of a worker that was killed.

If you don’t have workers’ comp insurance, then your company is financially responsible for all of these things. That is why, even if you only have one or two employees, you should not forgo this important insurance.

Most states offer a state fund for workers’ comp insurance. In many states, this will be your only option for buying workmen’s comp insurance. Other states allow you to choose from either private insurance or the state program.

Similar to car insurance requirements for workers’ comp insurance coverage vary between states. You can find out what your state requires by visiting your state’s Department of Insurance website or your state’s insurance commissioner’s website.

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The Cost of Workers’ Comp, Car Insurance, and What Affects Them

The cost of workers’ comp insurance is determined by the type of work your employees do in conjunction with the amount of money that each employee makes.

You will be charged based on the amount the employee makes per $100. You don’t have to include overtime in an assessment for workmen’s comp insurance.

Every job type has a code assigned to it that determines the risk of the job. The higher the risk, the more you’re going to pay for workmen’s comp insurance for your employee.

Even if you run a business that puts most of your employees into high-risk category, if you have a secretary that only works in your office, then you will pay far less for his or her workmen’s comp insurance than you would for someone who works with explosives, for example.

Much like workers’ comp, car insurance rates will be partly determine by what your employees are doing while driving your company vehicles. If your employees are delivering explosives to a work site, then their insurance rates will much higher than if your employee is delivering blueprints for a building.

In addition, your car insurance rates will be determined by who you let drive your company vehicles. For example, if you hire a young 18-year-old driver who has had two accidents, then insuring that person on your vehicle is going to be far more expensive than a 30-year-old driver with no accidents.

Workers’ Comp, Car Insurance, and the Rights of Your Employees

 

The first thing you have to understand is that you cannot charge your employees for workmen’s comp insurance, car insurance, or payroll taxes.

Many employers believe that they can deduct this insurance from their employees, but this is against the law! This is a cost that is the responsibility of the employer alone.

Some employers pay employees less in order to compensate for these costs and other taxes, which is legal. You cannot offer an employee a certain amount and then deduct from that amount.

In addition, you can’t ask an employee not to file a workmen’s comp claim, and you can’t prevent them from filing a claim. Even if you feel that the employee is filing a false claim, you cannot prevent them from doing so.

If you believe that they are filing a false claim, then you can inform your insurance company, and they will make a determination about the employee’s condition based on the doctor’s assessment

You also cannot prevent an employee from getting a second opinion regarding their condition. Many people feel that their employers prevent them from getting the care that they need by telling the doctors what to say.

By getting a second opinion, both you and the insurance company are protected from any future claims that your employee was prevented from getting the care that he/she needed to get well.

Keep in mind that you can’t fire an employee because they are on disability for an extended period of time or because they were hurt on the job.

If your employee can’t return to work, your insurance company will offer them a settlement. If they accept this money, then they cannot sue you for more money.

However, if they don’t accept the settlement, they can take you to court for more money. Your insurance company is responsible for paying this money (this is part of that liability protection mentioned earlier).

You can fire an employee that causes a car accident due to carelessness as long as it is specified in their work contract. You can’t fire them if they caused an accident to avoid hitting someone or something, however, unless you care to face a lawsuit.

Save Money on Your Workers’ Comp, Car Insurance, and Your Liability Insurance

 

There are ways that you can save money on your workmen’s comp and commercial car insurance. Many companies offer their employees incentives for working in an accident-free workplace, especially companies that have employees in high-risk jobs.

You can also save money on your insurance by choosing a deductible of up to $1,000 as part of your plan. You can save around 20 percent on premiums by choosing a deductible.

However, if money is tight for your business, it may be easier to pay a little now rather than a lump sum later.

You can also receive discounts on your workers’ comp insurance by:

  • Providing safety training to your employees
  • Providing an approved MSDS
  • Providing an approved training manual to employees
  • Providing a safe work environment
  • Providing light-duty positions for injured employees

To save money on your car insurance you are going to have to be picky about the people you hire. If you make it a requirement for anyone who drives your vehicles to have a good driving record, then you will save a lot of money on your premiums.

In addition, a deductible on your car insurance is a good idea. Your premiums will reduce 20 percent to 35 percent depending on the amount of the deductible you choose. Just remember, your deductible is the amount you have to pay out of pocket.

Lastly, for any type of business insurance you need from workers’ comp to liability to car insurance, you need to get a quote before you buy.

It doesn’t take more than a few minutes to use a quote tool to get the quotes you need. It is well worth those few minutes to determine who has the lowest prices available to you.

You can get car insurance quotes right now just by entering your zip code below!

References:

  1. https://www.thebalance.com/social-security-survivor-benefits-for-a-spouse-2388918
  2. https://en.wikipedia.org/wiki/Workers’_compensation
  3. https://www.thebalance.com/understanding-minimum-car-insurance-requirements-2645473
  4. http://www.genins.com/img/~www.genins.com/commercial%20lines%20articles/tips%20on%20spotting%20workers%20comp%20fraud.pdf
  5. http://www.rockylawfirm.com/2014/02/11/can-get-second-opinion-workers-compensation-case/
  6. https://www.ssa.gov/disabilityfacts/facts.html
  7. http://www.insureon.com/products/policy-comparisons/general-liability-vs-workers-comp

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