The basics

What is a business auto policy?

Business auto insurance (aka commercial auto insurance) is a form of liability insurance that covers cars, trucks, and other kinds of service vehicles owned by your business.

Who needs a business auto policy?

If your business owns vehicles, you’ll need business auto insurance.

What does business auto insurance cover?

Commercial auto insurance protects your business from financial losses involving the vehicles listed on your policy, such as damages resulting from an accident caused by one of your employees. You can pick and choose different types of coverage for different vehicles, depending on your needs.

Of small business owners rely on their personal auto policies for their business. However, few of these policies cover work-related claims.

Do I need business auto insurance even if I use my own car for work?

Probably. If you use your personal car for business purposes, such as visiting clients and running errands, you’ll need this coverage because personal auto insurance policies typically don’t cover work-related accidents.

Take a look at your personal auto insurance policy to see if it covers driving for work purposes. If not, get a quote with us.

What if my employees drive their own cars for work?

You can be held responsible. You can be held liable for any accidents that happen while someone is driving on behalf of your business, whether you own the vehicle or not.

If you have an employee who drives a personal vehicle for work purposes, you should check out hired & non-owned auto insurance.

Coverage highlights

Physical damage coverage
Pays for damage to your vehicle resulting from covered losses like theft, flood, fire, and vandalism.
Bodily injury liability coverage
Provides protection when you are at fault for an accident that results in another person’s bodily injury or death.
Property damage liability coverage
Pays for the damage to someone else’s property (such as another car or building) if you get in an accident.
Collision coverage
Pays for the damage to your vehicle if it hits, or gets hit by, any object.

Price factors

How much does business auto insurance cost?

Prices for this coverage hinge on several factors, such as the vehicle make and model, how old the car is, the cost when it was new, the weight, the limits desired, and the user’s driving record.

In general, the average cost per vehicle hovers around $750.

If you have employees driving on behalf of your business or are renting or borrowing vehicles, we highly recommend you consider hired & non-owned auto insurance. You can get the extra coverage for the extra drivers for only around $100/year.