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...

  • Company car insurance is not the same as personal car insurance plans
  • If deemed a high-risk, you will pay more for your insurance policy
  • Property damage liability coverage is required in most states

When shopping for company car insurance, the best thing that anyone can do is compare company car insurance online.

Insurance companies are competing for each client’s business because they have to make their monthly quotas with new signups.

Enter your zip code above and compare company car insurance quotes for FREE!

Table of Contents

Different Companies Give Different Company Car Insurance Quotes

At the same time, different companies have various needs, and they will be quoted diverse rates from different insurance companies.

For example, one company may be the type that is not considered to be a good risk for one insurance company, but another insurance company will see that particular client as a good risk.

These two companies are going to quote two very different prices.

The insurance company that sees a company as a high risk will give these potential clients a higher quote.

Those who file claims cost the insurance company more money than those who never file a claim, so insurance companies like to keep these types of clients to a minimum.

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How do I find the best auto insurance company?

The best way to find an insurance company that does not see a particular company as a high risk is to perform a comparison quote search online.

When companies receive several quotes from many insurance companies, they can set aside the ones that consider them to be a higher risk.

What will be left are those companies that will insure them for much more reasonable rates.

When performing a comparison search online, companies need to remember to ask for the same coverage.

By doing this, companies will be able to learn which insurance companies are charging a lot more for the same coverage than other companies.

Types of Company Car Insurance Coverage for Company Cars

The types of coverage that business owners need for their company cars is similar to the types of coverage they will have for their cars for personal use:

  • Bodily Injury Liability
  • Property Damage Liability
  • Collision Coverage
  • Comprehensive Coverage
  • Uninsured and Underinsured Motorist Coverage
  • Towing Coverage
  • Rental Coverage

Bodily Injury Liability

If while driving a company car an employee runs into someone and is found to be the cause of the accident, the company will be required to pay the bills for the people injured in the collision.

This coverage only pays for the people in the other car, not for the employee’s injuries, and it is coverage that is mandated by every state.

Property Damage Liability

This type of coverage is also mandatory, and it pays for the damages to the other party’s vehicle.

The employee may also have run into a utility pole, and the city would be presenting a bill to the company.

Property damage liability will pay these types of expenses as well.

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Collision Coverage

Collision coverage is optional company car insurance, but it is definitely an expense that companies cannot leave behind.

Collision coverage will pay for the repairs that occur from an auto accident no matter who was at fault.

Comprehensive Coverage

Comprehensive coverage is also optional, but companies need it in the event that their vehicles are vandalized or damaged in any other manner than in a car accident.

With this coverage, a company can have its vehicles repaired whether or not it was damaged by a human, an animal or an act of nature.

Uninsured/Underinsured Motorist Coverage

Uninsured motorists are breaking the law by driving without insurance.

The company has the right to sue these people for their medical bills and property damage, but these people will not necessarily have the means to pay these bills.

Uninsured motorist coverage will pay medical bills, hospital bills, funeral expenses and property damage expenses if a company car is ever involved in an accident with someone without insurance.

Underinsured motorists have met their states’ minimum requirements, but their coverage does not cover the entire amount of the medical bills.

Underinsured motorist coverage will pay the difference between what the underinsured motorist’s company pays and what is left over.

Towing Coverage

Towing coverage is an option that companies frequently take advantage of the opportunity to purchase.

Towing insurance prevents the company from having to pay to have the vehicles transported to a repair facility in the event that they break down while being driven by an employee.

Rental Coverage

As it is very important that companies keep their vehicles on the road so that they do not experience an interruption in their business operations, they may want to purchase rental car coverage.

Rental coverage will pay for rental cars in the event that a company car needs to be repaired.

Which companies need company car insurance?

All of this auto insurance may appear to be a big expense for a company, and they might like to forgo purchasing it.

This may not be a good idea for a lot of companies. First, business owners should compare car insurance companies.

Secondly, business owners can ask themselves two important questions to determine if they are among the companies that would benefit from company car insurance.

They include the following:

  • Does this company provide revenue?
  • Do we use the vehicles to run our business?

Those who answer, “Yes” to each of the above questions are owners of companies that need to purchase auto insurance for their company vehicles.

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The Ease of Purchasing Company Car Insurance Online

Comparison sites make finding the right auto insurance company easy. Business owners enter their information and several different quotes will be sent to their email inboxes.

Business owners can eliminate the insurance companies that are charging too much money for the policy.

After that, they have a manageable list, and they can contact each insurance company to inquire further about their policies.

Find commercial car insurance quotes now! Enter your zip code below and get started for FREE!

References:

  1. https://www.libertymutual.com/auto/car-insurance-coverage/bodily-injury-liability
  2. https://www.statefarm.com/insurance/auto/coverage-options/liability-coverage
  3. http://www.21st.com/auto-insurance-information/what-is-collision-coverage.htm
  4. https://www.nationwide.com/comprehensive-coverage-definition.jsp
  5. https://www.esurance.com/info/car/uninsured-and-underinsured-coverage
  6. https://www.allstate.com/tools-and-resources/car-insurance/towing-and-labor-cost-coverage.aspx
  7. https://www.allstate.com/tools-and-resources/car-insurance/rental-reimbursement.aspx