Similar to your personal auto insurance, your business likely needs similar insurance coverage for the modes of transportation you use in your business. Here’s an overview to help you understand how you can leverage auto insurance for your business.
How to Decide if You Need Business Auto Insurance
Who Owns or Drives the Vehicle
If your business owns vehicles, you’ll definitely want business car insurance to get complete coverage. If you’re a business owner with no employees, however, your personal auto insurance policy will likely cover you.
How the Vehicle is Used
If you or your employees use the vehicle or vehicles for business purposes, you’ll want to make sure you have a business auto insurance policy. Whether it’s driving between work locations or visiting clients, a business auto insurance policy can protect your employees and your business.
The Type and Weight of the Vehicle
Business auto insurance coverage varies for different types of vehicles. From sedans used for business purposes and company cars to commercial trucks and vehicles, you’ll want to make sure your vehicles are covered.
Required Business Liability Limits
It’s unlikely that your personal auto insurance policy will cover your vehicle if it is primarily used for business. If one of your employees is on their way to see a client and gets in an accident where other passengers are injured, the other party can potentially sue to collect damages from your business.
Why Your Personal Auto Insurance Policy Isn’t Enough for Business Use
If the vehicle insured is used primarily for business, your personal auto insurance policy probably isn’t enough coverage for you or your business. Certain vehicle types and business usage can often be excluded from personal auto insurance policies. Business auto insurance policies provide coverage for physical damage and liability coverages in amounts not offered by personal auto insurance policies.
How Much Business Vehicle Insurance Costs
There’s no standard business car insurance policy, with coverages and prices varying from state to state. The cost of your policy will be influenced by the number of vehicles you’re insuring, the value of the vehicles and how often they are driven.
SelectQuote Can Find the Best Car Insurance for Your Needs
Whether it’s finding the best auto insurance for you or your business, we’re here to make the car insurance buying process easy. At SelectQuote, we’ll take the time to learn about what’s important to you and what you need covered, giving you peace of mind at a price you can afford.
