Jessica Sautter is a Content Writer for CarInsuranceCompanies.com with a Bachelor’s Degree from Eastern Michigan University in Elementary Education with a Major in Reading and a Minor in Mathematics.

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Chris Harrigan has an economic degree from Limestone College and an MBA from Clemson University. He previously managed auto insurance claims for Enterprise Rent-A-Car. Currently, he is using his business and insurance expertise to provide insurance data analysis and visualizations to enhance the user experience.

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Reviewed by Chris Harrigan
Former Auto Insurance Claims Manager

UPDATED: Sep 30, 2020

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Key takeaways...

  • Business car insurance is an important coverage to have, but you should always compare policies before buying
  • You need to compare all of your likely choices of companies to records offered by your state’s department of insurance to ensure they are not fradulent
  • Read commercial car insurance reviews to make sure that whatever company you choose has a solid customer service department
  • Make sure you purchase enough coverage so that you are covered no matter what

Business car insurance is an important coverage to have, but you should always compare policies before buying. There are five distinct reasons why comparing commercial car insurance coverage is imperative.

Your business will benefit from having commercial auto coverage, and it will benefit even more when you compare before buying.

Start step one of the comparison process at the top of the page to get business car insurance quotes once you insert your ZIP code into the FREE quote tool now!

There is also your coverage amounts to consider before you start the buying process. Furthermore, there are different ways to compare insurance coverage that include researching the company for service and reliability.

Table of Contents

Know Your Coverage First

Before you begin comparison shopping for your commercial auto insurance, you first need to know how much coverage you need for your business.

This step is important to ensure that you are always getting quotes for the same amount of coverage to compare. It also is necessary to ensure that your business is adequately covered.

Comparing quotes that are for differing amounts of insurance coverage will not truly allow you to compare them equally. The different amounts of coverage will have dissimilar prices that will mean that the quotes cannot be analyzed side by side.

You must first assess the risk of your business and then choose your insurance coverage appropriately. First, you will need liability coverage for your company’s vehicles. Liability coverage pays for damages and injuries your company vehicles cause to other drivers and their cars.

Each state has its own minimum requirements for liability insurance, but such amounts are likely not enough for your business.

Industry specialists at the Insurance Information Institute advise that every business should have at least $500,000 in liability coverage.

This is to provide your business with enough coverage in the event of a serious accident that might involve multiple vehicles and many people.

Furthermore, your state may also require that you purchase uninsured/underinsured motorist coverage to protect against drivers without insurance; or they might require you to buy a coverage that pays for medical bills, such as personal injury protection or PIP.

Utilize the map provided by the National Association of Insurance Commissioners to link to your state’s department of insurance website so that you can look up the requirements for business auto insurance in your state.

Most experts also agree that optional coverage such as collision and comprehensive are important parts of any auto insurance policy, whether it is for private or commercial car insurance.

Collision will pay for your vehicle to be fixed or replaced if you cause an accident. Similarly, comprehensive coverage will pay to fix or replace your company vehicle due to non-accident related damage, such as theft, fire, flood, or other natural occurrences.

Additional insurance for your business car might be towing, rental car reimbursement, or employer non-owned car liability coverage to protect your business when employees use their private cars to do company work.

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#1 – To Avoid Fraud

The first reason why you should compare commercial car insurance is to avoid fraud. Basically, you need to compare all of your likely choices of companies to records offered by your state’s department of insurance.

Utilize your state’s department of insurance website to look up the licensing of each company to ensure that the company is legally allowed to do business in your state.

Furthermore, you can also view financial and complaint information about car insurance providers on your state’s department of insurance website.

While a car insurance company may not be fraudulent, high complaint numbers might indicate that they utilize business practices that are less than ideal!

You want only the best for your business. That means finding an insurance provider that is actually a licensed entity and avoiding insurers that utilize poor business practices, like denying claims out of hand.

#2 – To Find the Best Price

The next reason why you should evaluate any business car insurance company is of course to get the best price.

To compare prices, you need to get quotes from multiple insurers. You can get quotes from agents, call centers, company websites, or from quote comparison websites.

As noted above, make sure that you get quotes for the same amount of coverage so that your quotes can be rated side by side.

Shopping around and comparing quotes is the best way to find the lowest price for the same amount of coverage. Your business will benefit from a great price for the same amount of coverage.

Each insurance provider assesses risk and assigns a dollar amount to that risk in different ways.

The only way to know the range of prices available for your business’s auto insurance coverage is to get quotes.

Comparing quotes can easily save your business hundreds or even thousands of dollars on your commercial car insurance premium every year.

#3 – To Get the Best Service

The next reason why you should judge between car insurance providers for your business is so that you get the best service possible.

As a business owner, you know how important customer service can be. This concept is no different for commercial vehicle insurance providers.

For your money, you should get helpful representatives who know what they’re talking about, a full line of communication options, and assistance throughout the claims process. You are the customer, and you should not ever feel like your insurance company is the enemy.

The best way to judge the level of customer service provided by a commercial car insurance company is to look at consumer-based ratings.

One example of such ratings for companies from Amica to Nationwide are those provided by J.D. Power and Associates.

While such ratings are generally geared towards personal car insurance companies, most of those companies are so large that they also offer commercial car insurance, as well as many other lines of insurance.

You should compare the ratings of all of the business auto insurance providers that you are considering.

If you see any companies with consistently low ratings, then you will know that particular insurer is going to be more hassle than help. You deserve to get the best service for your company’s money.

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#4 – To Have a Reliable Insurer

A fourth rationale for comparing business car insurance is to make sure that you have a reliable insurer. Most people don’t consider the true value of what insurance companies provide. Basically, insurance is meant to make you whole again after a loss.

Without insurance, everyday occurrences such as accidents or a deer hit on the road could spell financial ruin for a business or individual.

Insurance companies provide a promise of financial security. If an insurance company is unable to fulfill that promise because of poor business practices, then the whole point of insurance is baseless.

You need to know that the insurance provider who collects your hard-earned pay as a premium will be able to live up to its promise of making you whole in the event of a loss.

Insurance companies go bankrupt all the time for many different reasons. Just like any other company, they start to pay out more money than they take in. When this happens to an insurance company, the company’s clients are left in the lurch.

Use these tips from the Better Busines Bureau to find companies you can trust.

However, there are financial ratings agencies that keep track of the finances of companies in important industries such as insurance. You can utilize these financial ratings to compare the economic strength of the commercial auto insurance providers you are considering.

Rating organizations such as Fitch Ratings, Standard & Poor’s, and Moody’s all provide alphabetical ratings that are utilized by individuals, business owners, and creditors to assess the monetary strength of insurance companies.

Each rating organization has its own scale, but each gives information about the difference between great ratings and poor ratings.

Do not utilize any car insurance provider who has low ratings. That means that they are slowly sinking into the red, and you don’t want to be on that ship if it goes down.

#5 – To Get the Most Coverage

The last reason to compare business car insurance before you buy it is to get the most coverage possible for your money. This is where utilizing the same amount of coverage for each quote can be very handy.

Say, for instance, you have estimated that your business can spend approximately $1,000 a year on business car coverage. Company A can offer you minimum state amounts of liability insurance, collision and comprehensive coverage with a high deductible, and employer non-owned car liability coverage for about $900 a year.

However, Company B can offer you $300,000 in liability coverage, collision and comprehensive with a mid-priced deductible, towing and rental car coverage, and employer non-owned car liability coverage for about $1,200 a year.

While Company A is cheaper than Company B, you get a lot more coverage for your money for your business with Company B. That additional coverage may mean the difference between protecting your business and having to pay out in the future.

Your company has been built through your hard work and efforts. Don’t let that all go to waste because you didn’t compare business auto insurance before buying!

Start the comparison of commercial car insurance coverage right here when you enter your ZIP into the FREE box right away!