Rachael Brennan has been working in the insurance industry since 2006 when she began working as a licensed insurance representative for 21st Century Insurance, during which time she earned her Property and Casualty license in all 50 states. After several years she expanded her insurance expertise, earning her license in Health and AD&D insurance as well. She has worked for small health in...

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Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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Reviewed by Jeffrey Johnson
Insurance Lawyer

UPDATED: Jul 14, 2021

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Here's what you need to know...

  • People driving personal vehicles don’t have the same exposure risks as commercial vehicle drivers
  • Businesses may have higher liability exposures, due to the goods they transport, the type of business, or employees using company vehicles
  • One of the biggest differences between personal and commercial policies is the higher limits of coverage that come with a business policy
  • Business car insurance is especially important when multiple employees may operate your vehicles
  • Additionally, business car insurance can provide coverage for goods being loaded or unloaded

Insurance for business-related cars commonly referred to as commercial auto insurance, is necessary for those that are exposed to risks above the average driver.

Businesses and commercial operations are often exposed to risks. With the combination of all of these exposures, business car insurance is important for anyone that meets the qualifications.

Make sure you have the right coverage for your business and employees. Enter your zip code to get started!

Business Owner Policies May Not Cover Vehicles

Many businesses have insurance policies that protect their buildings, their goods, and any services provided. However, most business owner policies do not provide coverage to any business owned or operated vehicles.

Not having the right coverage can lead to a large exposure risk if an employee is involved in an accident or a company vehicle causes damage to non-owned property.

While shopping around for business vehicle insurance quotes, make sure to compare what each insurance provider offers. Coverage limits from one company do not always carry the same premium at another.

Additionally, each provider may handle business claims in a different way. Your state’s Department of Insurance can provide information about a provider, as well as their history of complaints, for your review.

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Personal Policies Often Have Lower Limits of Coverage

While a personal auto policy may provide some coverage for business use, the limits of liability are often much lower than a business may need to be adequately protected.

While an insurance provider may be willing to provide coverage in the event of an accident, the coverage would only be up to the limits of the personal auto policy.

To determine if this coverage is right for your needs, your insurance provider will often go through a series of questions to figure out how you use your vehicle or vehicles.

The coverage you need may also vary based on the number of employees your business has, the goods your business transports, and the drivers utilizing your vehicles.

Your Business May Use Rented, Leased, or Other Non-Owned Vehicles


In addition to vehicles owned by your business, there is the potential that a non-owned, leased, or rented vehicle could be used for business reasons.

For example, you may ask an employee to use their personal vehicle to deliver goods to a customer that is unable to make it to your location.

If there is an accident while the employee is on the clock and performing a work-related function, their personal auto policy may not provide coverage.

Depending on the ways your business utilizes vehicles, there are different coverage options available that may suit your needs.

These options may include only owned vehicles, vehicles your company specifically leases or hires, or even any vehicles that are used for your business but are not owned, hired, or leased.

You will want to discuss the different options with your insurance provider, who can advise you on the best coverage to suit your needs.

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Employee Operated Vehicles For Business Reasons

Allowing an employee to drive their own vehicle or a company provided vehicle exposes your business to a large financial risk.

You must be aware of the risk and make sure you have the right coverage to mitigate it.

While employees operate any vehicle for your business, you may be held legally and financially liable for any accident caused by the employee. 

Additionally, you must know if the employee is not legally licensed to drive or is under a restriction.

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Some States Require Minimum Coverage Amounts


Similar to personal auto policies, some states require business vehicle policies to maintain minimum coverage limits. These limits may be the same as the limits required of personal vehicles, or they could be much higher.

Your coverage limits should always be enough to cover any potential risk you might face. Discuss your coverage limits with your insurance provider to make sure they are right for your business needs.

Business car insurance is important for any commercial operation that meets the qualifications and faces risk exposure higher than the typical personal driver.

While personal policies may afford some protection, the limits of liability are often much lower than the exposure risk faced by many businesses.

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