Company car insurance tends to cost between $50 and $200 a month. Request a personalized auto insurance quote from your current business insurance agent.
costs between $50 and $200 a month for small businesses—but company car insurance rates can vary widely because there are so many factors that can impact your rate:
To get commercial car insurance, you’ll need to call a local independent insurance agent.
If you already have any type of business insurance—like a business owner’s policy (BOP)—it’s a good idea to talk to your existing insurance agent first. It can be easier and more efficient to use one agent as they can help you make sure you’re fully covered for your unique business needs.
Additional requirements: Your insurance agent should let you know if you need to fill out a Business Auto Coverage Form (BACF). Insurance companies commonly use a BACF to provide business auto liability insurance.
Company car insurance vs. personal car insurance
The main differences between a commercial and personal auto insurance policy are:
Increased liability risk: There are higher liability minimums compared to a personal car insurance policy.
Extended coverage: Coverage options can apply your liability insurance to any existing vehicles owned by the company, as well as any new business vehicles the company purchases in the future.
Single deductible: Commercial car insurance often offers
that allow a company to only pay one deductible on a trailer and vehicle involved in an accident as opposed to paying a deductible for both separately.
Combined single limit: Your policy may also include a combined single limit (CSL) per accident—meaning you’ll have one payout limit that covers property damage liability and bodily injury liability. Most personal insurance policies have separate limits for each.
Need to know: Combined single limits usually start at around $100,000, although you sometimes can choose higher limits ranging from $500,000 or more.
and comprehensive/collision coverage to protect cars, trucks, SUVs, and vans owned by your company. Note that a standard company car insurance policy may not cover heavy trucks and trailers.
: If you’re at fault in an accident, property damage coverage pays for physical damage (up to your coverage limits) to other people’s vehicles, homes, business property, and more.
: Comprehensive coverage pays up to your coverage limits for damage to your vehicle due to non-collision-related incidents like falling objects, severe weather, fire, theft, and vandalism.
: Uninsured motorist coverage pays up to your coverage limits if you’re in an accident with a driver who doesn’t have insurance (or doesn’t have enough insurance to cover your medical bills). Some states require UM/UIM.
: Roadside assistance services will help you get back on the road after locking your keys in the car, having a flat tire, running out of gas, and more.
Who it covers: Company car insurance typically covers all employees with a valid license—and each person’s driving history may impact your insurance rates.
There are some exclusions:
Tools or materials that are inside the vehicle
Employees’ personal vehicles that are driven for business
Commuting to and from work
Non-owned trailers (you’ll need trailer interchange insurance for that)
HNOA insurance covers personal vehicles for business use
If your employees drive their own vehicles for business purposes, they may not be covered under your commercial auto insurance policy or their personal auto insurance coverage. That’s where hired and non-owned auto insurance (HNOA) comes in.
HNOA kicks in if an employee gets into an accident while they’re driving their own vehicle for business purposes like:
Running errands
Picking up packages
Dropping off shipments,
And more!
Keep in mind: This coverage will only pay for legal bills resulting from that accident.