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Compare car insurance for government organizations

Protect your department from liability while staying within your fleet's budget.

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Fact checked

Insurance rates for vehicles used for government and public organizations vary depending on the type of vehicle and how it’s used. Many insurance companies offer customized coverage to fit your needs and situations.

Which government or public departments need commercial car insurance?

Departments funded and operated by state or local governments may need commercial car insurance, including:

  • Cities, towns, townships and counties
  • Libraries
  • Parks and recreation
  • Sanitation and waste management
  • Fire departments
  • Road maintenance departments
  • Water utilities
  • Charter and magnet schools
  • Montessori schools
  • Public schools, K-12
  • Vocational schools

Note that federal vehicles are self-insured by the US government. If you work in a federal department, you’ll likely not need insurance for your government-owned vehicle.

What car insurance coverage do I need for my public organization?

Many vehicles owned by public organizations are subject to the same commercial car insurance needs as other businesses, including:

  • Liability. Cover damages and bodily injuries for the other driver when a public vehicle causes an accident.
  • Collision. Pay for damages of a public vehicle, even when the employee is at fault.
  • Comprehensive. Protect public vehicles used for road improvement, water utility services and transportation from noncollision accidents like vandalism or permanent equipment theft.
  • Uninsured/underinsured motorists. Get coverage for damages when another at-fault vehicle can’t fully pay a claim.
  • Medical payments or personal injury. Pay for personal injuries not covered under an employee’s health insurance. This may only apply to public employees and approved passengers.

Compare car insurance for public organizations

Name Product AM Best financial rating Available states
CoverWallet
Not rated
All 50 states
Compare multiple quotes for business auto insurance to find the cheapest rates from this online commercial insurance broker.
Insurance321 commercial car insurance
Not rated
All 50 states
Connect with a commercial agent who understands your industry and receive a personalized quote in as little as four minutes.
Esurance commercial car insurance
A+
All states except AK, DE, HI, MT, NH, VT, WY
Help yourself to dozens of coverage options and accelerated claims process for business cars, vans or box trucks.
Liberty Mutual commercial car insurance
A
All 50 states
Take advantage of telematics to monitor and improve employees' driving and save on insurance premiums.
Allstate commercial car insurance
A+
All 50 states
Customized, industry-specific polices like leased car coverage plus quick claims filing.
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Compare up to 4 providers

What additional coverage should I consider?

You may need specialized coverage, depending on the type of vehicle. For example, school buses have insurance needs that are different from regular cars. Consider these types of coverage:

  • Roadside assistance. Get quick assistance on the road for minor repairs or towing.
  • New vehicle replacement. Get the value of a new vehicle if one of yours is totaled during an accident.
  • Rental reimbursement. Pay for a rental car when your regular vehicle is out of commission.
  • Equipment insurance. Protect equipment on public vehicles from damage during an accident, such as audio or radar detection equipment.
  • Borrowed vehicles. Get coverage for employees who respond to an emergency in a borrowed personal or commercial vehicle.
  • Umbrella insurance. Cover costs that exceed other policies during an accident.
  • Non-owned liability. Extend coverage to public employees who use their personal vehicles to conduct public duties.
  • Fleet owner package. Bundle coverage when you need commercial car insurance for multiple public vehicles, such as a fleet of police cars.

    What situations am I covered for?

    A commercial auto policy can protect your department from a variety of situations. Some situations include:

    • School bus passengers.If a car hits a school bus carrying children, you can cover damages and medical bills with collision and liability coverage.
    • Police shooting. Police on patrol may use their cars as cover in dangerous situations. Let comprehensive insurance pay for damages from bullet holes and anything else that could damage your car.
    • Water damage. If utility workers experience a burst water pipe while servicing a neighborhood, cover any damages to the vehicle with comprehensive coverage.
    • Accidents with your vehicles. Work trucks need to get up and running quickly, even after an accident. Pay for damages to the vehicle and any equipment with collision and equipment policy add-on.
    • New equipment purchases. Protect new shipments of library books or expensive utility equipment by purchasing a cargo add-on to your policy.
    • Maintenance crew. The city’s road maintenance crew is often around dangerous traffic. Protect employees from paying for medical bills in the case of an accident with an underinsured motorist and medical payments coverage.

    How much is car insurance for public organizations?

    How much you’ll pay for coverage for your government or public vehicles varies depending on the type of vehicle and how it’s used. For example, a tractor-trailer transporting construction materials costs $2,500 per year on average. However, a school bus costs about $35,000 on average.

    Here are some factors that affect the premium for government-owned vehicles:

    • Vehicle type. Some vehicle types cost more to insure, such as specialized waste management vehicles versus the business use of sedans.
    • Location. Insurance companies consider large cities more at risk for accidents than rural areas. You may also see a premium increase in other above-average risk areas.
    • Equipment. Construction or cargo trucks used to carry heavy equipment may increase your premium. The equipment could result in increased damage during an accident.
    • Vehicle weight. Heavy vehicles drive up insurance rates because they are more likely to cause damage in an accident. Some heavyweight vehicles may also need additional coverage.
    • Coverage. The amount of coverage you need determines your premium. To save money, you could opt for a higher deductible.

    Bottom line

    Many public departments need commercial car insurance just like other businesses do. Due to the specialized nature of some public vehicles, insurance companies may offer customized coverage.

    Compare commercial car insurance options to fit your department’s needs.

    FAQs about public department vehicle insurance

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