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: Oct 7, 2020

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Key takeaways...

  • Just like you insure other areas of your business or your life, you also need to insure the vehicles that are used for your small business
  • Private auto insurance won’t pay for business use, property and liability business insurance does not automatically cover vehicles
  • Get quotes for coverage from many different insurance companies to find the best coverage for your business
  • An independent agent will help you to focus on your business while they focus on your insurance needs

Every business should have commercial car insurance, and that includes small businesses too. Just like you insure other areas of your business or your life, you also need to insure the vehicles that are used for your small business.

Saving money on small business car insurance is not hard to do. Find small business car insurance right here when you insert your ZIP code into the FREE quote tool today!

There are many ways to save on your premium for small business auto insurance. Just as with personal auto insurance, doing a little bit of research will help you to save money.

However, your small business will realize the most savings in the event that you ever have to use your commercial car insurance.

Table of Contents

Why You Need Business Car Insurance

Commercial auto insurance is a necessary coverage you should have in order to protect your business.

If you are using a private car for business purposes, then your private auto insurer will not cover all parts of an accident, theft, or other loss, according to the industry specialists at the Insurance Information Institute.

Most small business owners would agree that their business does not have the assets to replace or repair damages to a vehicle completely out of pocket.

If your vehicle that is utilized for the day-to-day company operations is out of commission due to an accident, theft, or loss such as a fire, then how will your company stay in business? Likely as not, that vehicle is also your personal vehicle, so how will you also conduct the everyday tasks of life?

Additionally, your business will also be liable if your car is the cause of an accident. If that accident occurred while you were using the vehicle for business purposes, then your private car insurance company is unlikely to pay damages to others.

Car accidents can cause tens of thousands of dollars in injuries and damages. Without business car insurance, your company will be on the hook to pay those thousands of dollars.

Furthermore, people are much more likely to sue a company than an individual after a car accident, believing that the company has better means to pay for damages such as pain and suffering.

Does your small business have the extra cash lying around to hire a lawyer to defend you in court? Does your small business have funds to pay for a large-sum settlement?

Commercial car insurance protects your business in both cases. Also, if your small business is not incorporated, then you as the owner can be sued as well.

Another reason why you need business car insurance is to also protect your company when employees use their own vehicles for business purposes.

Your business can be found financially responsible for accidents involving your employees while they were driving their private vehicle for your business.

No other insurance coverage that you have as a small business owner is going to cover your liability for vehicles used for your company.

Private auto insurance won’t pay for business use, property and liability business insurance does not automatically cover vehicles, and homeowner’s insurance for home businesses will not provide enough coverage to protect your vehicles.

Essentially, small business car insurance is the only way to ensure that your business is not subject to liability claims or lawsuits. This keeps your business up and running despite an accident, theft, or other loss, or during a lawsuit.

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Assess Your Risk

The first way to save money on the commercial car insurance for your small business is to assess your company’s risk. This is the number one tip offered by the U.S. Small Business Administration when you are buying insurance for your business.

Every company is going to have a different amount of risk, which is the likelihood of you having to file a claim in the future.

A small business is most likely to have the least amount of risk, as it won’t have a fleet of vehicles that are on the roads day in and day out.

However, if you are on the road a lot, and you use your vehicle for business purposes, then you certainly have more risk than a small business owner who really doesn’t use a vehicle for their business at all.

For instance, a contractor such as an electrician or plumber who has a van or truck that holds supplies and is used for transportation will have a greater risk than a business owner who conducts business solely online and hardly ever uses their vehicle for business purposes.

Additionally, a business that has employees drive company vehicles or their own vehicles on business errands will also have more risk than those businesses where only the owner drives a car on company business.

Assessing your business’s risk will allow you to buy only the amount of insurance that you need.

Shop Around

The next tip for saving money on commercial car insurance is a tip that can save money on any insurance package.

All experts, including those at the National Association of Insurance Commissioners, recommend that consumers shop around and compare quotes from many different companies for coverage.

Every auto insurer is going to have a different price for coverage, and the only way to know how much they will charge is to get a quote.

Just like you would try to find the best price for a supplier of goods or materials for your business, you should also try to find the best price for your small business car insurance.

Get quotes for coverage from many different insurance companies to find the best coverage for your business. Make sure that you are getting quotes for the same amount of coverage from each insurer so that you can compare quotes side-by-side.

A quote for full coverage cannot be compared to a quote for liability coverage only; one provides more coverage, so the prices are not going to be anywhere close to each other.

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Bundle All Policies

Another option for saving some money on the cost of commercial car insurance is to get all of your insurance packages from the same company.

This term is usually referred to as bundling, and you can likely get commercial car insurance from the company that supplies your private auto insurance, your homeowner’s insurance, your property and liability business insurance, your health insurance, and even your worker’s compensation insurance.

Most providers offer a significant discount for bundling two or more policies. Basically, they use the bundling discount to offer incentives to get more of your business.

Other benefits include having just one insurance bill to pay and having just one company to go to when you have an insurance issue.

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Use an Agent

A further recommendation from many industry experts about saving on small business auto insurance is to utilize an independent agent. An independent agent is licensed by the state to sell insurance for many different companies.

Your company will benefit from the knowledge and expertise of an independent agent, and any agent will more than likely be able to help your company save money.

They will also be able to help your company to assess its risks, assist you with finding an insurance company that can bundle all of your insurance needs, and walk you through the claims process if needed.

An independent agent will help you to focus on your business while they focus on your insurance needs. An agent will also allow you to have just one contact for all of your insurance issues.

Use a Specialty Insurer

Lastly, you might be able to find your best rate with a specialty insurance company. Some insurers focus on providing coverage to a specific industry or type of company.

Some focus on providing coverage for companies with marine crafts, those companies that utilize large trucks for transportation, or businesses that transport people.

Such a specialized insurer knows the ins and outs of the particular industry and can provide insurance coverage that fits like a glove. Often, the specialization in unique industries allows such insurance companies to offer much cheaper insurance coverage.

Your business benefits from both low prices and personalized insurance.

You can research insurance companies online if you think that your business fits the profile of a specialized industry, or the independent agent from the above tip can probably point you in the right direction as well.

Saving money on all small business expenses is important. All overhead costs, including insurance, eat into profits and shrink the bottom line for your company. However, while commercial car insurance may seem like a big expense, it is actually there to save your company from even bigger costs down the road.

The last thing you want for your small business is to see it falter due to huge expenses from an accident or other loss. The true savings for your small business will be realized during the crisis of a car accident, a widespread disaster, vandalism, or theft.

The lack of business auto insurance could cost you your company, but having full coverage will allow you to grow your business as big as you once dreamed!

Protect your dream right here by searching for commercial car insurance quotes simply by entering your ZIP code into the FREE quote tool below!