What You Should Know
- If you are a business owner and drive your car for personal and business use, it's a good idea to carry business coverage on your vehicle
- Your employees should be fine with personal car insurance policies as long as they have the right amount of liability coverage
- There are endorsements you can get for your business to avoid liability if an employee is ever in a car accident
If you have a car that you only drive for business, or for both personal and business use, you may want to learn more about car insurance companies that allow personal insurance on business cars.
While car insurance for business and personal use does not need to be all that confusing, you need to know whether you carry enough insurance on your vehicle. Our car insurance guide may be a great place to start to learn more.
If you use your car for both business and personal use, you'll want to assess certain factors to see if you should purchase a business or commercial policy. This will also help you determine whether your current personal car insurance policy is enough to cover you.
Once you decide what type of car insurance policy you're looking for, you can do research online to find the right company with the right price for coverage.
In fact, you can use our free quote tool above to search for affordable car insurance for business vehicles today.
If you're a good driver, most car insurance companies will cover you for personal use. However, if you're considered a high-risk driver because of multiple DUIs, car accidents, or something similar, you might have more trouble.
Any car insurance company you are considering for a personal policy will be willing to insure your personal vehicle with a non-business policy. This is a standard approach to car insurance.
While countless car insurance companies offer personal car insurance, some of the most popular car insurance companies in the U.S. include:
- State Farm
- Liberty Mutual
- American Family
You can check with any of these companies to see what coverage they offer.
While you can consult agents with other car insurance companies, it is your job to know how much coverage you actually need and whether a personal car insurance policy will be enough to protect your vehicle, yourself, and your business.
As a business owner, you could ultimately be held liable if you or an employee are in a car accident. If there are other parties involved in the accident, they could sue your business for additional money.
If you drive your car for both business and personal use, you are not alone. There are plenty of small business owners whose cars are used for both work and personal purposes.
The best coverage for a car that does double-duty when you own a business is something like a company vehicle policy. This policy will cover you when you're driving for work or for personal use. You can purchase additional coverage for when other family members, such as a spouse or teen driver, use your car as well.
If you own multiple cars for your business and those vehicles are titled in the company's name, your commercial vehicles obviously need business or commercial policies. Because these cars are only used for work purposes, a personal policy would not cover them.
Additionally, if you were ever in an accident, you would want better coverage on these vehicles.
If your business has employees, and these individuals are asked to use their vehicles for work purposes, you must make sure their personal auto insurance policies carry enough liability coverage. This is the only way they can safely and legally drive for you and your company.
To avoid lawsuits when it comes to your employees' driving habits, you can purchase something called a company car policy and add an endorsement for non-owned auto liability.
This way, if one of your employees is in an accident, the other people involved will not be able to sue your company.
There's a lot that goes into buying the right type of car insurance policy. If you are not sure if you have the right coverage, the following questions should help you decide:
- Who owns the vehicle?
- How is the vehicle primarily used?
- What is the type and weight of the vehicle?
- Will your business require higher liability limits?
If you are the owner of a business, you should have more than just personal liability coverage on your car. You use it for work and for personal use, and an accident could get you and your business in a lot of trouble if you're not properly insured.
If you have people who work for you and occasionally drive their own cars to run errands or make deliveries, they should be fine to continue to maintain a personal auto insurance policy. But you will need extra coverage for your business in case they are ever in an accident.
If you have employees who use their cars primarily for work, meaning that while they work for you, they are constantly driving their vehicles, you will want to offer business coverage for the vehicles or have them drive a company car that already has a business policy.
If the vehicle you drive is heavier than a standard car or SUV—like a dump truck, tow truck, or semi—you will need commercial coverage to ensure your vehicle is properly covered for work purposes.
Your business may require higher liability limits depending on the nature of your company and what you do. If this is the case, you will want to purchase a commercial policy to protect your vehicles and other assets associated with the business.
Once you know a bit more about car insurance for personal and company vehicles, you won't have a hard time knowing which type of policy you should purchase.
While you may find some car insurance companies that don't allow personal insurance on business cars, the vast majority will offer coverage options that work for you. But you need to make sure the policy you purchase offers enough coverage.
The best rule of thumb is to make sure you're covered in case anything bad happens. This way, you and your company will avoid being held liable for the damages.
As you start to look for the right car insurance policy for your personal vehicle, you should do your research online to see the best rates and make sure you're not paying more than you need to.
You may want to learn more about how to get cheap car insurance so that you're not paying too much for your coverage. If that's the case, you can compare quotes online and make sure you're aware of what other companies are charging for the same types of policies.
You can use our free tool below to compare car insurance rates for your business vehicles and see how much you could save.