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Commercial Car Insurance Quotes

Insurance Ranked - Updated January 9, 2023
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Commercial Car Insurance Quotes

The consequences of your employees can become your responsibility if your company is not sufficiently insured. Business insurance aims to protect your company from claims and lawsuits that could otherwise cripple an uninsured company. Business insurance can both guard a company’s finances and give owners like you peace of mind. You can achieve more goals when you do not have to worry about losing all you have created due to disastrous circumstances. From general liability coverage to product liability insurance, you have many choices to protect your company’s fortunes. Commercial car insurance is yet another type of coverage that can protect your company against expensive claims.

Do you know what commercial car insurance covers? Do you know how much it costs? How can you get a quote?

Now is the time to answer these and more questions. Read this article to learn more about commercial car insurance.

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What is Commercial Car Insurance?

A type of business insurance, commercial car insurance offers protection for vehicles that are driven for business use.

If you or a driver of your company's vehicle causes an accident that injures another person or damages their property, then the injured party can file a claim or sue the driver of your company vehicle and/or your company for damages. Your commercial car insurance policy can cover the damages up to the policy limit as well as any legal fees.

Why Do I Need Commercial Car Insurance?

If your company requires the use of vehicles, then their very use creates risks that can prove costly. Accidents happen to even the most cautious people. Commercial car insurance can protect your company from losses that occur from auto incidents even if your employee is not at fault. So if your company owns a fleet of vehicles or only one, then you should prioritize purchasing commercial car insurance.

What Does Commercial Car Insurance Cover?

Commercial car insurance can cover physical damage coverage for vehicles your company owns, leases, hires, or uses during normal operations. Physical damage can include damage from auto accidents, weather, theft, and other non-collision situations.

Commercial car insurance can also provide liability coverage for bodily injury and property damage caused to others by your employee’s use of the insured vehicles.

Commercial car insurance can help pay for medical expenses and physical losses.

What Does Commercial Car Insurance Not Cover?

Commercial car insurance probably will not cover damage caused by armed conflict, terrorist activity, and radiation.

What is the Difference Between Commercial Car Insurance and Personal Auto Insurance?

Other than commercial car insurance being more expensive than personal auto insurance due to covering more risks, a key difference is that a commercial car insurance policy covers an entire company or business. A personal auto policy typically covers one person who operates their own vehicle for non-business use.

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What Are Some Other Types of Commercial Car Coverage?

The following list indicates common types of commercial car coverage and what they help pay for:

  • Collision coverage: accident-related damage to your insured company vehicle.
  • Comprehensive coverage: damage to your insured business vehicle from non-collision events.
  • Rental reimbursement: a rental vehicle if your company vehicle is rendered inoperable.
  • **Liability coverage: **medical expenses, repairs, and legal fees.
  • Uninsured or Underinsured Motorist coverage: damages sustained in incidents caused by an inadequately insured driver.
  • Personal Injury Protection: medical costs and income loss for the occupants of your insured company vehicles.
  • Medical Payments coverage: medical and funeral expenses for the occupants of your insured company vehicles.

Do I Need Commercial Car Insurance If I’m an LLC?

If your business involves the use of a vehicle for any reason, then you should obtain commercial car insurance to help protect your business and personal finances if a traffic-related incident happens.

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How Much Does Commercial Car Insurance Cost?

As with most types of business insurance, commercial car coverage rates depend on several factors:

  • Business and driving risks
  • Company size
  • The amount of desired coverage
  • The number and types of vehicles insured
  • The number of employees who will drive the insured vehicles
  • The value of the vehicles

How Can I Lower My Commercial Car Insurance Rates?

Hire safe drivers

If your company revolves around the use of business vehicles, then you should make sure your drivers have clean driving records. This helps reduce risk and lower your commercial car insurance rates.

Shop around

You do not have to buy a policy from the first insurance provider you come across. You also do not have to buy one from the provider you always see advertised. These issuers might be more expensive than others. You should get quotes from as many providers as possible to improve your chances of getting the best deal. One commercial car insurance quote will probably not yield the cheapest rate.

Know your limits

It is vital to know what type of coverage best suits your company. Equally important is knowing how much you can afford to pay. You should not go broke keeping your company protected.

Seek discounts

Although each insurance provider is different, they may offer similar discounts to attract customers. Ask prospective providers if they offer their customers paid-in-full, multi-policy, and prior insurance discounts. You can also ask them if they can bundle commercial auto coverage in a Business Owner’s Policy (BOP).

Choose a cheaper payment option

Some insurance providers offer their policyholders discounts if they pay in particular ways. For instance, using an Electronic Funds Transfer (EFT) option could result in lower costs.

Pay early

An easy way to lower your rates is to pay your premiums early. However, this option only works if your insurance provider offers it.

Pay more

Paying a higher deductible before a payout is approved can lower the premium. You should ask your insurance provider if they allow you to leverage this and all the previously mentioned options.

How Do I Get Commercial Car Insurance Quotes?

You can acquire commercial car insurance quotes by getting in touch with an insurance provider, agent, or broker. You can go online and contact them via their websites, call them, or visit them in person. A quick internet search can give you a great list to start working from.

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How Can I Choose the Best Commercial Car Insurance?

The best commercial car insurance is what most closely meets your needs and budget. You can choose the best provider and coverage by assessing what you need to be covered and how much you can afford.

Additionally, you should look for financially stable insurance providers. If you choose one that can not pay its debts, then it will probably be unable to cover your losses in the event of a claim. You can research insurance companies’ financial statuses on the A.M. Best Company's website. This trusted resource grades insurance issuers so customers can determine who to do business with.

You can also choose a commercial car insurance provider by reading customer reviews. Existing and former customers can give you deep insight into how providers treat their customers. Factor the public’s view into everything else you consider before picking your insurance provider.

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Conclusion

Business owners should not take the topic of insurance lightly. Learning about commercial car insurance is especially crucial if your company uses vehicles every day. Getting commercial car insurance quotes can take some considerable effort but think about the alternative: what if you do not own this coverage and your employee injures someone while on the road? Can your company withstand the financial blow?

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Commercial Car Insurance Quotes FAQ


How can I find out if I have commercial car insurance?

If you have a commercial car insurance policy, then you should have coverage. You should examine all of your business insurance policies to find out for sure. If you still are not sure, then contact your insurance provider. They can quickly tell you whether or not you do.

Can I bundle my commercial car coverage with other policies?

You should ask your insurance provider if you can group your commercial car policy with your other business policies. You might be able to combine policies into a cost-effective BOP.

What policies can I bundle with my commercial car coverage?

You might be able to combine your other business policies. Types of coverage include:

  • General liability insurance: covers claims of bodily injury, property damage, libel, and slander.
  • Commercial property insurance: covers a company’s physical location, everything inside it that is used for business, and the surrounding area.
  • Professional liability insurance: covers losses stemming from professional errors.
  • Workers’ compensation insurance: covers your employees if they become injured or ill on the job.
  • **Data breach insurance: **covers expenses associated with a cyberattack, like data theft.
  • Commercial crime insurance: covers losses originating from theft, forgery, and other dishonest acts.
  • Equipment breakdown insurance: Covers the repair costs to fix the broken equipment your company uses.
  • Product liability insurance: covers claims of injuries and property damage originating from the products your company makes, sells, and/or distributes.

My company does not use vehicles for business use. Do I need commercial car insurance?

You probably do not need commercial car insurance if your company does not use vehicles for business use. Ask an insurance agent or broker to find out for sure.

What are some examples of vehicles that are covered by commercial car insurance?

  • Company cars
  • Construction vehicles
  • Delivery vehicles
  • Dump trucks
  • Food trucks
  • Forklifts
  • Service utility trucks
  • Work vans

Is commercial car insurance tax deductible?

Typically, any business expenses can be written off your taxes. Your commercial car insurance premiums are business expenses. As such, you deduct them from your business taxes.

Are my personal auto insurance premiums tax deductible?

Personal auto insurance premiums are not usually tax deductible. However, if you use your vehicle for business purposes, then you might be able to write off some of the paid premium amount. You should consult with your insurance provider, accountant, or tax expert for more information.

Does commercial car insurance cover items inside company vehicles?

Coverage terms depend on the policy. If such coverage is written in your policy, then the items inside your company’s vehicles could be covered. Items can include tools, supplies, and anything else that is used during regular business operations.

Is personal car insurance applicable to my company’s drivers?

Your company’s drivers are not insured under your personal car insurance unless they are added to the policy. Even still, it is recommended you acquire commercial car insurance for maximum benefits.

Someone other than my employee was driving an insured vehicle and damaged it. Will my commercial car insurance cover the damages?

Commercial car insurance policies generally cover only the drivers listed in the policies. Therefore, your policy will not cover the damages stated in your question.

Can I change my commercial car insurance to a private car insurance policy?

You can change your policies once you legally transform your company car into a private car. You will probably have to pay the required fees, schedule a vehicle inspection, and register your vehicle as private.

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