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 18, 2020

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Key takeaways...

  • As an owner of a business, you are also most likely concerned with keeping costs down, which is why finding cheap insurance for your commercial vehicles is important
  • The minimum requirements vary per state, so check with your state insurance department to ensure that you purchase at least the mandated amount
  • One way to lower the costs of your business car insurance is to combine the car policy with your other business policies
  • When comparing the insurance companies that you find online, compare more than just the rate quote

When you are a business owner you have a lot of responsibility, and part of this includes making sure you are properly protected when it comes to business car insurance.

As an owner of a business, you are also most likely concerned with keeping costs down, which is why finding cheap insurance for your commercial vehicles is important.

Begin your search for cheap car insurance rates by entering your ZIP code into the FREE quote box!

Even if you have a very small business, if you use a vehicle for business purposes you probably need business insurance. A large business requires a more complicated policy, and you should consult an agent before purchasing one.

There are aspects to business auto insurance that are similar to personal auto insurance policies, as well as coverages that are specific to businesses.

Table of Contents

Understand Business Car Insurance Terms

Before you start your hunt for commercial car insurance rates, you should evaluate your insurance needs as these will affect the type of coverage you purchase.

Do you want coverage for your own vehicles? Do you want medical coverage? Is protecting yourself against uninsured motorists a concern? Will your employees be driving their own vehicles?

Just as with personal auto insurance, every company needs to carry liability coverage at the minimum. The minimum requirements vary per state, so check with your state insurance department to ensure that you purchase at least the mandated amount.

More than likely, you will want to carry coverage to help pay for damages to your vehicles, which would include both comprehensive and collision coverage. It would also be a good idea to carry some type of medical coverage to pay for any bodily injuries to your employees.

To help protect against the 13.8 percent of drivers without adequate insurance, uninsured motorist coverage is recommended by industry experts.

Beyond these basic types of car insurance, businesses require additional coverage. If your employees drive their own personal vehicles for business purposes, you cannot depend on their personal insurance to cover them.

You are responsible for any accidents and damages caused during work hours, so getting liability coverage for non-owned vehicles is pertinent.

If your employees are out on the road a lot, you may want to provide roadside assistance coverage to help cover flat tires, running out of gas, and towing services. You may also decide to purchase additional coverage to protect you against lawsuits, such as an umbrella policy.

If you own vehicles that will be transporting products all over the country, you will be required by the Department of Transportation to provide additional insurance information.

If you are transporting chemicals or materials that are dangerous, you will have additional requirements as well. Do your research so that you are properly covered.

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Types of Insurance Companies that Sell Business Car Insurance

Car insurance is a big business and there are many companies who are competing for your business and money. Business car insurance is a whole other ball game.

Many businesses have insurance needs that are very complicated and take a specialized policy to cover. Because of this, some car insurance companies choose not to take on the extra risk of insuring businesses.

There are a number of general insurance companies that offer business as well as personal auto policies. These are usually the bigger insurance companies that have a lot of assets and a wide variety of products from which to choose.

Smaller, general car insurance companies usually choose not to offer the business side of insurance.

If your personal auto insurance company does not offer business car insurance, or you want to work with a company that works mainly with companies, there are specialized business car insurance companies.

Specialized providers are more specifically tailored to help out businesses and often offer more products than general providers do. This is especially true if your insurance needs are complicated.

Specialized companies may also be able to offer you cheaper rates, as they are very familiar with services aimed for businesses.

Information Needed for a Rate Quote

When you begin your search for cheap car insurance you should have available the information for which you will be asked. Insurance companies will rate each business differently according to a number of factors.

A rate quote for a small business will be less than a larger business, for multiple reasons. Even if you are comparing businesses of similar size and function, you may notice quite a difference in rates.

Each insurance company will request similar information from you in order to give you a quote.

Basic information needed includes the name of your business, the type of business, and the number of employees who will be driving.

You will also be asked for the legal status of your business, your SIC code, and any subsidiary operations that you may have. Next, be prepared to enter the types of insurance in which you are interested, as well as the limit and deductible amounts.

Most insurance companies will ask for additional information, such as the driving histories of your employees, as well as their credit histories.

You will get cheaper rates if the employees responsible for driving your vehicles are safe drivers and have good driving records.

No matter what, it is important that you are as honest as possible when filling out the information.

If you currently have commercial auto insurance with another company, be prepared to submit that information as well.

Insurance companies will usually charge you a higher rate if you show a gap in your car insurance coverage. This isn’t an issue, obviously, if you are a new business just starting out.

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Internet Search

The Internet is the quickest way to find cheap car insurance for your business. There are a couple of ways you can do a search.

One is to visit individual insurance websites and take note of which ones offer business car insurance and what their quote is for your business insurance needs. Try to get at least five quotes.

Once you have a number of quotes, you can compare them to see which one is cheapest. This is one way to find a cheap commercial quote, but it is not the fastest way.

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Using a Third-Party Site

The fastest and easiest way to get multiple quotes for your business car insurance is to use a single, third-party quote website.

These websites are associated with a number of insurance companies that offer car insurance.

Instead of having to enter all of your business and insurance information on separate sites, you only have to fill it out once, which saves you a lot of time.

When you use one site, you will receive rate quotes almost instantly. These will be delivered via an insurance agent or representative of the companies that can help you out. You can then compare the quotes and decide which one you like the best.

Select Good Drivers

Since one of the factors that goes into determining a rate quote is the driving record of the driver, in order to get cheap insurance rates you need to make sure that the only employees driving business vehicles are those with clean records.

You will be asked to include information such as the driver’s license number and history of each driver under the policy. If you include drivers who have a less-than-stellar driving record, you can expect to see high rates.

Safe drivers will bring your rates down. Also, over time some insurance companies offer a discount for no claims. If your drivers go a specified period of time without filing a claim, you may notice cheaper rates down the road.

Combine Policies

One way to lower the costs of your business car insurance is to combine the car policy with your other business policies.

According to Forbes Magazine, there are 13 different types of insurance that businesses should carry.

Of course, auto insurance is one of the 13 types in the Forbes list. Keep in mind that if you use the same insurance company for all of your policies, you will save money.

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Cheap Is Not Always Good

Although you should be cautious about your bottom line, choosing the policy that is the cheapest is not always the best way to go.

It is more important to choose an insurance provider that is reputable and knows what it is doing, even if it means paying more for a policy. In the long run, you will actually save more money.

When comparing the insurance companies that you find online, compare more than just the rate quote. Use the Consumer Information Center at A.M. Best to find out the financial ratings and financial outlook of each of the companies.

You want to choose a company that is strong financially and is projected to stay around for a long time.

You should also check with the insurance department of your state. Here you can find out any negative information about the companies you are researching, such as how they handle the claims process and if they follow through with other complaints.

If you find a company that offers a cheap policy that also stands out as being a quality company, by all means, go with it. Just make sure you do your due diligence before making a decision.

Cheap business auto insurance rates can be found right now by placing your ZIP code into the FREE quote tool below!