Company car insurance coverage

Company car insurance coverage

How to purchase car insurance for your business?

If you are running a business you can buy commercial car insurance/company car insurance. It helps to cover the damages of company cars, cars of employees either for business purposes or for their personal use.

Before buying company car insurance you need to check how this insurance protects against the damages of company cars and other benefits attached to this insurance.

Who needs company car insurance?

Company car insurance is valuable for the owners of the business, employees if they are using vehicles for business purposes. You can decide that you need company car insurance through the following factors:

  1. Ownership of the vehicle: Any vehicle under the ownership of the company needs company car insurance to cover the damages. If a company uses the vehicles of employees or other individuals then there may be a requirement of commercial car insurance with personal car insurance according to the use of cars.
  2. Use of vehicle: If you are driving a car for business work for example transportation of goods or passengers,  then there is a need for a business auto insurance policy.
  3. Some vehicles require mandatory auto insurance policies, like trucks with weight more than 1000 pounds and with a capacity of more than 2000 pounds. If you own vehicles with commercial modifications you need an insurance policy.

How does company car insurance work?

Company car insurance provides you different types of coverage when you file a claim to recover losses due to theft, crash, etc. Following are the different types of company car insurance coverage:

  1. Liability coverage: Liability coverage under the company car insurance coverage protects you against the payments of medical expenses(bodily injuries) and property damage if you had an accident.
  2. Personal injury coverage: It is also known as medical payment coverage. It helps to cover the expenses of your personal injuries and injuries to passengers due to a crash or accident.
  3. Collision coverage:  Collision coverage vehicles you against the damages to your vehicle, no matter who is at fault.
  4. Comprehensive coverage: Comprehensive coverage helps you to cover the losses due to collision, theft, vandalism, etc.
  5. Uninsured/underinsured motorist coverage: This coverage helps you to pay for the damages if you had an accident with a driver who is uninsured or underinsured.

Additional coverage under company car insurance coverage policy:

Company car insurance policies offer different other types of coverage that generally are not offered under the personal car insurance policies. Following are the other additional company car insurance coverage:

  1. Trailer interchange coverage: Trailer interchange coverage protects the trailers whose vehicles are used by the owners of other companies.
  2. Rental reimbursement with downtime: This coverage is for those who use rental vehicles for temporary purposes when their vehicle needs repair.
  3. Hired vehicle coverage: This coverage protects against the damages of cars and vehicles which are on rent for employees and clients of the company.
  4. Non owned vehicle coverage: Non owned auto vehicle coverage helps to cover the damages when employees use their personal vehicles for the purpose of business.

How to purchase company car insurance:

There are many companies that provide both personal car insurance and company car insurance. You can contact your personal car insurance agent if you are looking for company car insurance and you can compare company car insurance quotes for an adequate insurance policy.

If you are a business owner and using vehicles for business use then you need a company car insurance policy with your personal car insurance policy. 

How Much company car insurance costs?

Company car insurance coverage policy costs more than the personal car insurance policy.  The cost of commercial auto insurance policy is around $1000-$2000 per year but personal car insurance policy costs just $875 per year. You can get different discounts on company auto insurance coverage policy when you purchase multiple policies.


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