Small business auto insurance or commercial auto insurance protects your business when you or your employees are out on the road doing company business or anytime they are driving company vehicles. This type of insurance coverage can pay for medical expenses if the driver of a company vehicle is involved in an at fault accident. It may also protect the business by paying for damage to property caused by the driver of a business vehicle or for the medical expenses of those the driver injured in the accident. This is important because if you don’t have enough small business auto insurance to cover the costs of the accident, the business will have to pay the costs.

Not just for accidents and property damage caused by your company vehicles or drivers, business auto insurance coverage may also cover damage to business cars, trucks, or vans that are caused by fire, theft, windstorms, hail, flood, and vandalism.

Small business auto insurance can provide coverage in company provided vehicles, or if your employees drive their own vehicles. Most states require businesses to have some type of commercial auto insurance. Check this interactive state map for the minimum basic auto insurance requirements in each state. The requirements for business liability may be different, but this gives you a starting point.

Why Your Small Business Needs Commercial Auto Insurance

If you lease, own, or rent any type of vehicle for your small business, you need to have small business auto insurance coverage. A commercial auto insurance policy will cover vans, cars, trucks, and any other type of motorized vehicle if it is used in the line of business. Business vehicles are not covered by personal auto insurance, nor are they covered by regular business liability insurance, you have to have a separate auto insurance policy for your small business.

If the business doesn’t own any vehicles, you rarely use your personal vehicle for business, and your employees don’t use there personal vehicles for business use, then you may be able to state on your personal vehicle policy that it is used occasionally for business and not be required to purchase a business auto insurance policy. You should check with the company that insures your personal vehicle to see if your circumstances allow this option.

Another option for small business owners if you have more than two vehicles that are used for business purposes is fleet insurance. This type of coverage is often used by businesses that have multiple vehicles. It can offer options like one deductible for all vehicles instead of a deductible for each individual vehicle. This way if several of your business vehicles are involved in the same accident, you only pay one deductible for the accident.

Cost Effective Tips for Small Business Auto Insurance

In order to find cost effective auto insurance coverage that will protect you or anyone else you permit to use a company car, truck and/or van, you should start buy getting several quotes on the same insurance limits and options from different companies. This part you can probably do online at a commercial insurance comparison website. This will allow you to compare pricing.

Once you’ve narrowed the field to a couple of quotes, talk to the agent or broker about your business specifics and if there are any options you haven’t considered. For instance you may want to provide roadside assistance in order to keep your driver with the vehicle if it breaks down. This can cut down on theft and vandalism of company vehicles.

You will want to ensure that the company you get your small business auto insurance from provides ongoing support so that as your business grows and changes you can keep your coverage up-to-date.

Summary

If you have any vehicles titled in the company’s name, or if lease, rent, or use any vehicle regularly for you business, then you should have a small business auto insurance policy. All states require some form of auto insurance and you are mandated by law to carry the required minimum. If you have employees use their own vehicles within the business, say for deliveries, then you should also have a business insurance policy to cover at least the liability of your company if your employee gets into an accident while using their vehicle for business purposes.

Small business auto insurance can cover physical damage to the insured vehicle, property damage done to stationary objects (like a telephone pole), damage done to company vehicles by a variety of causes outside an accident like fire, theft, vandalism, or hail, and even medical coverage for anyone injured in the accident, including the driver. There are also options available like roadside protection.

The cost of your small business insurance policy is determined by a number of factors, use, mileage driven, and the driving record of employed drivers.