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Compare commercial car insurance for professional services
Protect your vehicles so that you can focus on your customers, and choose add-ons to protect your business property.
While a personal auto policy may cover some business travel, a commercial policy offers higher limits with added protection for your fleet of salesmen, installers and more.
What's in this guide?
- What types of professional services need commercial car insurance?
- What car insurance coverage do I need for my professional service business?
- Compare car insurance for professional services
- What additional coverage should I consider?
- What situations does commercial car insurance cover?
- How much is car insurance for professional service businesses?
- Will my personal auto policy cover business use of my car?
- Bottom line
- Frequently asked questions
What types of professional services need commercial car insurance?
If your professional services business involves travel, client meetings and business errands, you might want to consider the protection of a commercial policy.
Other reasons you may need commercial car insurance include:
- You drive a company-owned vehicle.
- You regularly use your personal vehicle for business purposes.
- Your risk of causing heavy damage in an accident is high.
Professional services that fall into these categories include:
- Real estate agents
- Financial advisors
- Advertising agencies
What car insurance coverage do I need for my professional service business?
When buying coverage as a professional service insurer, you may need to evaluate how often you use your business vehicle. Standard coverage for commercial vehicles includes:
- Liability. Pays for damages to other drivers and their vehicles after an accident caused by you or your company.
- Non-owned automobile. Covers you or your employees that use vehicles not owned by your company. Many insurance companies include rentals and hired automobiles under this coverage.
- Collision. Covers damages to your business vehicle after an accident you’re at fault for.
- Comprehensive. Covers noncollision accidents that involve theft, hitting a deer, natural disasters and more.
- Uninsured/underinsured motorists. Protects you from drivers that don’t have enough insurance to cover damages after an accident.
- Medical payments or personal injury. Protects you and your employees with coverage for expensive medical bills not covered by health insurance.
Compare car insurance for professional services
What additional coverage should I consider?
Many businesses don’t need more than standard coverages. However, you may want additional coverage if you travel often or live in a high-risk area:
- Roadside assistance. Pays for minor repairs and towing costs if you break down roadside.
- Rental reimbursement. Covers the cost of a rental while your business car is repaired after an accident.
- New vehicle replacement. Returns the value of your car after a total-loss accident.
- Loan or lease gap. Pays off your car’s loan or lease after a total loss, even if it’s more than the car’s value.
- Specified perils. Allows you to choose the specific noncollision accidents you’d like to cover as an alternative to comprehensive coverage.
- Umbrella insurance. Covers expenses that exceed the limits of your other policies. It works well for those who expect damages to incur large expenses.
- Business insurance packages. Saves you money by bundling your commercial car insurance with other business insurance policies.
What situations does commercial car insurance cover?
Your commercial car insurance policy can protect you the costs of:
- Accidents caused by employees. Salespeople or consultants may need to meet clients in person. Liability coverage can cover accidents they cause along the way.
- Collision in a nonowned vehicle. Advisors and agents who do business in their own vehicles need protection too — and you need protection from liability after an accident on the clock.
- Multiple passengers for meetings or showings. Cover passengers who may be conducting business with you, such as customers viewing real estate with their agent.
- Lawsuits filed against the company. Get help with legal fees if a driver sues for not receiving their desired claim amount.
- Business property. Add-ons can protect your business property from theft while in a vehicle, like building plans, financial information and valuable equipment.
How much is car insurance for professional service businesses?
Insurance rates are often low, because many professional service businesses repurpose regular cars for business.
The average rate for a commercial car is $1,250 a year. That rate is low compared to coverage for specialized vehicles like tractor trailers or taxis, which can range from $2,500 to $7,500 a year.
Factors that can influence your specific rate include:
- Vehicle type. Sedans often result in the cheapest insurance rates overall, while service trucks or luxury sedans can increase your premium.
- Location. Conducting business in a large city can cost more than driving in a rural area.
- Coverage. The more coverage you need, the higher your insurance rate will be. However, you can raise the deductible and find discounts to save your business money.
Will my personal auto policy cover business use of my car?
It depends. If you’re conducting business when an accident occurs, your insurer may pay for personal damages, depending on your company and policy. But it could also refuse to pay for liability damages on behalf of your company.
You may also not be covered if you use your personal vehicle for business purposes without a business rider or exemption.
If you’re not sure if your current policy covers you in an accident, confirm with your insurer.
You may need commercial car insurance if you own a professional services business or regularly drive your own vehicle for business. But by driving a regular car versus a specialized commercial vehicle, you should see premiums that are lower than average.
Compare the best commercial car insurance options for your business needs.
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