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.

Full Bio →

Written by

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.

Full Bio →

Reviewed by Chris Harrigan
Former Auto Insurance Claims Manager

UPDATED: Sep 27, 2020

Advertiser Disclosure

It’s all about you. We want to help you make the right car insurance coverage choices.

Advertiser Disclosure: We strive to help you make confident car insurance decisions. Comparison shopping should be easy. We are not affiliated with any one car insurance company and cannot guarantee quotes from any single company.

Our car insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different car insurance companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.

Key takeaways...

  • Having a commercial auto insurance policy may be a necessity for your business if you are operating vehicles
  • You will need to make sure that all employees who will be operating a vehicle on the job are listed as drivers on the policy
  • If you have employees who are under the age of 21, this may increase your commercial auto insurance premium because they are considered to be much more likely to get into an accident
  • Make sure that your business’ commercial auto insurance policy has adequate policy limits to support the number of drivers who will be operating vehicles on the job
  • If you have a company auto insurance policy, you can add a non-owned auto liability endorsement to the existing policy for employees who own their own vehicles but may be using them for work purposes

When you have a business that uses cars or trucks on a regular basis, a commercial auto insurance policy is a necessity to make sure that you are covered for any liability from an accident or other damage. This is in addition to whatever business owner’s liability policy that you may already have.

It is a good idea to make sure that every employee who operates a vehicle for your business is listed on the policy. If you have employees who are under the age of 21, they could be more expensive to insure because they do not have an established driving record.

You may also want to increase the total limits of your commercial auto insurance policy to account for the extra risk they add to your overall operations.

Compare car insurance rates from top companies in your area today using just your zip code!

The Need to Get a Commercial Auto Insurance Policy

adobestock_51259258-1600x1600-1

If you operate a business that relies on your employees driving cars or trucks to do their job, then you will need a commercial auto insurance policy.

Do not be fooled into thinking you are covered because you already have a business owner’s liability policy. This policy will not cover you for any damage caused by an employee driving one of your vehicles.

The benefit of having a commercial auto insurance policy is that you will have peace of mind that you have coverage for all employees driving your vehicles.

Compare quotes from the top car insurance companies and save

 Secured with SHA-256 Encryption

Coverage Considerations if Your Company Does Not Own a Vehicle

Even if your business does not necessarily have any vehicles registered in its name, you may still need coverage because your employees may be driving their own cars for business purposes during the workday.

In this scenario, you could add a non-owned auto liability endorsement to the existing policy for employees who own their own vehicles. This provides coverage for those employees in case they get into an accident while driving their own car for an errand or some other type of company function.

If you have an employee who is under the age of 21, this is a very important consideration for your existing commercial auto insurance policy.

Drivers under the age of 21 are more likely to get into an accident and cause serious damage to other drivers and their vehicles than older, more experienced drivers.

This means that if you have an employee who is under the age of 21 who is frequently driving while on company time, then there is a greater risk that you could have a claim filed against your business if that employee injures someone or their property.

By adding the non-owned auto liability endorsement to the existing commercial auto insurance policy, your business will have coverage if the injured party tries to recover in excess of the policy limits of your employee.

Younger drivers may not have very high policy limits, so the non-owned auto liability endorsement to the existing policy could end up saving you a lot of money in court costs down the line.

The Type of Coverage that You Can Get with a Business Vehicle Insurance Policy

A business vehicle insurance policy provides many of the same coverage options that you are probably used to from your personal auto insurance policy.

As a business owner, even if you have a personal auto liability policy, this will not be sufficient to take care of the business vehicle insurance needs of your company.

If you want insurance coverage for physical damage to your company’s own vehicles, then you can add collision, comprehensive or specified perils coverage to your business auto insurance policy.

All of these policies cover you for damage to your company’s vehicles, even if the accident was caused by one of your employees.

Specified perils coverage may be cheaper for you than comprehensive coverage, but it only provides coverage in the event of very specific incidents.

If you have a large fleet of new vehicles, then you are probably safer going with the comprehensive coverage because it is broader and will protect the value of your vehicles in more circumstances.

Compare Car Insurance Companies

Compare quotes from the top car insurance companies and save

 Secured with SHA-256 Encryption

Getting the Lowest Premium on Your Business Vehicle Insurance Policy

One of the best ways to make sure that you do not pay a higher premium than you have to for company car insurance is to take steps to reduce the risk of your drivers getting involved in accidents.

This includes frequently reviewing driver safety information and enforcing a strong company policy of safe driving on the road.

If you have younger employees who will be driving your vehicles, it is even more important that you enforce strict safe driving policies.

You should make sure to impress upon employees that a condition of their continued employment is that they follow all safety protocol when operating a vehicle on company business.

As a business owner, you may even be held liable for failing to make sure that your employees will be responsible drivers on the road.

This means that you have a duty as an employer to check the driving record of the employee that you are allowing to drive company vehicles.

If part of your daily business operations involves employees driving company vehicles, then you should make sure that all employees have full driving privileges and do not have a history of poor driving.

Failure to do so could result in serious liability for your business if an employee injures another person while driving on the job. This is why many employers require background checks on job applicants before they are hired for the job.

If you take these steps to make sure that you are only putting safe drivers for your company on the road, then your risk of accidents will greatly decrease. This will eventually be reflected in the reasonable premium that you will pay for your business vehicle insurance policy.

Compare quotes from the top car insurance companies and save

 Secured with SHA-256 Encryption

Making Sure that You are Paying the Lowest Rate for Your Business Vehicle Insurance Policy

adobestock_25238884-1600x1600-2

The most straightforward way to make sure that you are not paying more than you have to for your business vehicle insurance policy is to get several quotes before you sign up for a policy.

If you already have a business vehicle insurance policy, then you may want to quickly compare different rates online from business vehicle insurance providers so that you can change companies if you find out that you are paying too much.

Considering that it is fast and easy to compare rates online, you can end up saving yourself a significant amount of money on premiums without investing too much time searching for a variety of insurance rates on your end.

After you get a list of different rates by using a free online search tool, you can speak to agents or representatives from the business vehicle insurance companies that you are interested in so that you can give them more specifics for your company’s situation.

You may find out that you are eligible for certain discounts to get an even lower rate.

You should ask any questions that you may have about your coverage at this point so that you can be certain that you are getting all of the coverage that you need without overpaying for it.

Recap on Company Car Insurance for Drivers Under 21

If you need to maintain a commercial auto insurance policy for your business, it is important to make sure that all employees who will be operating any vehicles for your business are listed and covered.

If you have an employee who is under the age of 21 and will be driving company vehicles, then you need to make sure that the employee is added to the policy, which could increase the premium because younger drivers are considered to be much more likely to be involved in an auto accident.

In the event that your company does not have any vehicles registered in its name, then you can add a non-owned auto liability endorsement to the existing policy. This means that the company would have coverage for any employee who is driving his or her own vehicle while performing company tasks.

Enter your zip code below to find car insurance rates that work for you!