What Is Business Car Insurance?

Q: How Does a Business Car Insurance Policy Work?

It’s common for employees to drive commercial vehicles for various business reasons. However, let’s say that on their way to a delivery, they rear-end another car and cause significant damage. In addition to the property damage, the other driver sustains injuries and is taken to the hospital. A business car insurance policy can help cover the property damage and medical expenses from the accident. If you didn’t have auto insurance coverage protecting your business, you’d be responsible for claims costs. Learn more about How Does Business Car Insurance Work .

Q: Do I Need Business Car Insurance on My Car?

You only need business car insurance coverage on your car if your business owns it. If you use your own personal car for business, you’ll need hired and non-owned auto coverage. This helps protect you and your employees on the road while using personally owned, leased or rented vehicles. You can add this coverage to a Business Owner’s Policy (BOP). You can easily get a business insurance quote .

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Key Takeaways

Business auto insurance protects your business from claims of damage or injury while your vehicles are driven for work.
Prices vary, but on average, commercial auto insurance costs our customers $574 a month.**
The right insurance helps provide financial protection and ensures compliance with state and industry regulations.

How Does a Business Car Insurance Policy Work?

The right protection will keep employees who drive company vehicles covered on the road. So, if they’re on their way to a delivery and accidentally rear-end another car, causing significant damage, your insurance will help cover the repair costs. If the other driver sustains injuries and is taken to the hospital, a business car insurance policy can help cover the medical expenses from the accident. Without commercial auto insurance protecting your business, you’d be responsible for all the costs that come from an accident like this.

Commercial auto insurance is designed for the company cars you own and use for business purposes. This doesn’t just include cars, it can also be:

Trucks
Vans
Trailers

However, be aware that this insurance doesn’t cover vehicles that your business rents, leases or hires.

business owner happy being protected by company insurance for car

Who Needs Business Auto Insurance?

If your business owns vehicles that you or your employees use for work, it’s a good idea to get a business car insurance policy. If you or your employees get into a car accident while driving for business, it can help protect you – even in the event of a fatal accident. Having company insurance for car accidents involving business-owned vehicles ensures you’re not left covering liability costs on your own.

A business auto insurance policy can help protect small businesses and their employees in many ways, including:

Driving between different work locations
Visiting existing or potential customers
Performing deliveries on behalf of the business

A commercial vehicle insurance policy isn’t just for big businesses. Many self-employed individuals can benefit from business auto insurance because it provides coverage in case you’re involved in an accident while driving for business.

What’s Covered by a Business Car Insurance Policy?

Business car coverages can vary by state and depend on a business owner’s unique needs. Other policies can cover all drivers. In general, commercial auto insurance covers claims of property damage and bodily injury from accidents while driving for business. Policies include coverage for:

Auto liability if you or an employee damage someone else’s car
Medical bills for injuries due to a crash
Uninsured or underinsured motorists

Be aware that a business car insurance policy is different from personal auto insurance. Although business car insurance has similar coverage, like comprehensive coverage and liability coverage, your personal car insurance policy excludes coverage if you get into an accident while driving for business. So, if you get into an accident while driving for work and don’t have business car insurance, you may have to cover claims and medical payments out of pocket.

To get the right coverage for your business, get a commercial auto insurance quote.

When Do I Need Business Car Insurance?

If you or your employees drive company-owned cars for business, a business car insurance policy can help protect you on the road. The right company insurance for car-related risks not only provides financial protection but also ensures compliance with state and industry regulations. Business car insurance can help if:

You use your car to pick up supplies or deliver products to customers
A corporation or partnership owns your vehicles
You use a business-owned pickup truck, van or utility vehicle

business owner happy being protected by insurance for business car

How Much Does Business Auto Insurance Cost?

On average, commercial auto insurance costs our customers $574 a month, totaling $6,884 a year.** It’s important to remember that business auto insurance costs vary. Insurance companies use different factors to determine costs. This can include:

Claims and driving history
Location
Number of employees

The best way to find out how much business insurance will cost your company is to get a quote.

Why Choose The Hartford for Business Car Insurance?

We know each small business has unique needs and risks to face. That’s why we make it easy for business owners to work with our specialists to tailor their car insurance policy. We offer:

Downtime loss
Rental reimbursement
Glass repair waiver of deductible

If you or an employee gets into an accident while driving a business-owned vehicle for work, we know what to do. Our specialists are here to help you through the claims process and get your business vehicles back up and running as soon as possible.

Get a business car insurance quote today and learn how we can help protect you on the road.

Discover the top 10 reasons why you need business insurance.

Frequently Asked Questions About Business Car Insurance

Do I Need Business Car Insurance on My Car?

You need company insurance for cars and other vehicles if your business owns them. However, if you use your own personal car for business, you’ll need hired and non-owned auto coverage added to your Business Owner’s Policy (BOP).This helps protect you and your employees while using personally owned, leased or rented vehicles. Without it, you may be responsible for claims and your personal auto insurance policy may exclude coverage.

Can an LLC Get Car Insurance?

A limited liability company should have commercial auto insurance for vehicles owned by the business. It can help protect you from claims against your business.

Is Car Insurance a Business Expense?

Commercial car insurance may be considered a business expense; however you may have to choose between deducting insurance or mileage at tax time. Consulting with a tax accountant is the best way to understand the right deductions for your business.

Do I Need Commercial Auto Insurance?

How Much Does Small Business Insurance Cost in 2024?

How Much Does Commercial Auto Insurance Cost?

All States Commercial Auto Insurance

** Costs, premiums, and coverages mentioned are estimates and are not guaranteed. Actual cost, premium, and coverage are determined at the time of quote or issue and are specific to an individual risk. Premiums are based on information provided to The Hartford, including, but not limited to, underwriting and rating criteria. All examples included on this website or in an advertisement are intended for informational purposes only and are not an offer or a guarantee of premium or coverage. Coverage and products described are subject to the terms and conditions found in the policy contract. Any educational information provided about available coverages does not modify the policy language or imply that any claim is covered. Products are not available in all states or for all businesses.