Small Business Auto Insurance
For entrepreneurs, small business auto insurance is an important part of making sure that things are running smoothly and preparing for any situations. Commercial auto insurance policies for your small business help to ensure that your business will be protected from any losses that may occur if you or your employee crashes a company vehicle. Insurance companies have many coverage options that can come in handy for small businesses, but none may be as important as a commercial liability policy.
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UPDATED: Nov 12, 2020
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Auto insurance is just one of the thousands of things on the mind of a small business owner. For entrepreneurs, the self-employed, and other small business owners, their business is much more than a job; it’s a lifestyle. At the end of the day, small business owners don’t clock out and go home, they are always working. Whether it be planning out the next day of meetings or thinking through a strategy that could send their company to the top. Needless to say, running a business quickly consumes most of your time.
As the boss, it is your job to make sure that all of the day-to-day operations of running a business go as smoothly as possible. It is impossible to know exactly what problems will arise in the day ahead. The same goes for emergencies. Is your place of business insured for fire or flood damage? Are you protected if one of your employees gets injured on the job? Will you be out of thousands of dollars if your delivery truck doesn’t make it back at the end of the day?
These are a just a few of many questions every small business owner should be asking themselves. After all, it’s up to you to make sure that there are no roadblocks that could potentially bring business to a halt. That is why you should be doing everything you can to protect every last asset of your business, yourself included. Continue reading below to learn more about small business auto insurance, including:
- What insurance options are available for you, as a small business owner
- How much small business auto insurance can cost
- How to buy small business auto insurance
Insurance Options For A Small Business
Insuring yourself is not only one of the smartest investments any business owner can make, but it also is required by law. Luckily for all of us, most auto insurance companies have many affordable policies and options ready for small business owners. If you already have auto insurance, you should actually be covered when driving your own business vehicle. (Of course, it couldn’t hurt to read over the terms of your policy to ensure there aren’t any strange clauses that could temporarily void your coverage.) Some businesses, however, may call for a commercial automobile insurance policy.
Commercial auto insurance policies for your small business help to ensure that your business will be protected from any losses that may occur if you or your employee crashes a company vehicle. Insurance companies have many coverage options that can come in handy for small businesses, but none may be as important as a commercial liability policy. Liability coverage for small businesses can pay up to $1 million dollars for damage that your small business is ruled responsible for. Having this type of insurance is vital to any company looking to stay afloat following an accident.
If driving your car happens to be a critical part of running your business, it may be the time that you increased your liability limits. Of course, a business owner won’t make any financial decision without some serious thought, the same goes for insurance. Increasing your liability limits will add to your monthly premiums, but choosing a high deductible can help reduce the monthly rates.
Uninsured Motorist coverage also can come in handy for small businesses. If someone without insurance were to cause a collision with your company vehicle, it could be years before you get all the damages paid. This could leave you, your vehicle, and possibly your company out of commission for a long time. Having uninsured (or under-insured) motorist coverage can help you get all the money you need for repairs quickly to avoid any “road bumps” for your business.
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The Cost Of Small Business Auto Insurance
The cost of a small business auto insurance policy is determined by a number of factors, most notably:
- The coverage limits
- Which type of coverage you would like (liability, collision, uninsured)
- How many company vehicles you wish to insure
- How many employees will be driving your company vehicles
- The make and model of your company vehicles
If your business involves hauling employees, supplies, or anything else really, you should consider insuring these things as well. Chances are they play an important role in how you run your business and should be protected as such.
How Much Will Small Business Auto Insurance Set You Back?
The good news is that small business auto insurance doesn’t have to be expensive. In fact, depending on your needs, car insurance can be surprisingly affordable for your small business. A number of companies specialize in providing discounted rates on small business auto insurance, and depending on your line of work, you may be eligible for special discounts.
Compare commercial auto insurance quotes online today to make sure you get the best rate. Prices vary widely across the industry, and it’s never a good idea to compare just one or two quotes.
After getting a quote for small business auto insurance, you can customize that quote to meet the unique needs of your business. Your auto insurance coverage can include some or all of the following:
- Bodily injury liability coverage
- Property damage liability coverage
- Accident benefits and medical payments coverage
- Collision coverage
- Comprehensive coverage
- Uninsured/under-insured motorist coverage
These are the same types of coverage available on an ordinary car insurance policy. Bodily injury liability coverage covers damages due to bodily injuries caused by a collision. It can also cover your legal costs if your business is sued after a collision.
Out of all the coverage options listed above, your business may consider dropping comprehensive coverage to save costs – particularly if your business is using an older, less-valuable vehicle. Comprehensive coverage protects your vehicle against theft, vandalism, weather-related damage, and other incidents. However, if your business keeps its vehicles securely stored and protected against the elements, then comprehensive coverage may be unnecessary. You can save a significant amount of money on the cost of small business auto insurance by dropping comprehensive coverage.
You can also adjust your small business auto insurance quote by changing your deductible. A $500 deductible is particularly popular, for example, but you can increase your deductible to $1,000 or higher to lower your premiums.
It’s also important to consider how high your liability coverage limits should be. Many business owners choose to add more liability coverage to company vehicles as an extra layer of protection. However, some businesses save money by maintaining the lowest basic liability limits allowed in your state – say, $10,000 or $15,000 of bodily injury liability coverage per person and $30,000 of property damage liability.
Ultimately, small business auto insurance doesn’t have to be expensive. It’s like shopping for ordinary car insurance: by comparing quotes online today, you can maximize coverage while minimizing costs. Once you’ve picked a quote, talk to your insurance agent to customize that quote to meet the needs of your business. You can ensure your business’s vehicles are fully covered without spending too much on small business auto insurance.
Buying Car Insurance For Your Business
As you can see, many things determine how much your small business auto insurance policy will cost you. Fortunately, these policies are entirely customizable and can be molded to fit the exact needs of your business. To get a better idea of how much your small business car insurance policy will cost, it’s a good idea to speak with an insurance broker or agent.
In addition, there are a number of companies that offer auto insurance packages geared specifically towards business owners. Such policies may include increased coverage, coverage of drivers and supplies, and special discounts that you can only get as a small business owner. To see if you qualify for these special business owners discounts, all you have to do is enter your zip code above and get quotes from our partners. You can then make an informed and financially sound decision for the security of your small business.
Additional Resources For Small Business Insurance
- bizFluent – The average cost of small business insurance
- InsureU – Commercial auto insurance for small businesses