Compare Car Insurance Quotes

In 3 Minutes, Save 32% on Average. Compare Quotes from 50+ Providers for Free!

Anyone who drives their vehicle or a business vehicle for work will need to get business insurance. There is a big difference between a regular insurance policy and a business insurance policy. A standard policy only covers drivers for commuting to work and for social use. Business vehicles offer insurance coverage for traveling between offices, driving around employees, or anything else that is done for business purposes. Trying to use standard auto insurance coverage to cover business purposes can result in your automobile insurance coverage being denied when you go to make an insurance claim. Due to this reason, it is important to make sure that you have the right car insurance for all your business needs.

Is Business Car Insurance More Expensive?

business car

Usually, car insurance for businesses is more expensive than car insurance for personal use. This is usually due to the fact that more miles are going to get put on a business vehicle than a personal vehicle. However, it is also due to the fact that you might be moving employees around and have other things on your mind when you’re driving the vehicle. The more things that you have on your mind, the higher the chance you have of getting into an accident. Odds are, business coverage will also cost an insurance company more in terms of liability should an accident occur. Usually, businesses have a lot more to lose than one particular individual has to lose. You can definitely expect business car insurance to cost more than regular insurance for these reasons.

What Does Business Insurance Cover?

You can get business insurance for a wide variety of different purposes. The insurance that you buy, however, should match with what you are doing with the vehicle. When multiple people are going to be driving the vehicle, you need to have more than one driver on the insurance policy. When you are going to be transporting goods in the vehicle, you should likely have insurance coverage for those goods. On top of that, you also need to make sure that you give fairly accurate yearly mileage to your insurance company so that they know the risks. Any fraudulent information that you give your insurance company can come back to bite you. You can even be denied coverage when you go to make a claim. Make sure you are upfront with your insurance company about what you are going to do with your vehicle and you shouldn’t have any problems.

What Type of Business Car Insurance Do I Need?

business car

The type of business insurance you need depends on what you’re doing with the vehicle. Usually, there are three different things that people use business vehicles for. The first thing that you might need a particular policy for is when a spouse needs to drive a business vehicle away from the regular workplace. An additional policy change is also needed for when there is more than one driver using the vehicle at work. Finally, you might need insurance coverage for cargo and you might also need coverage to be able to travel to certain regions and to cover you for a certain amount of mileage.

Do Insurance Companies Give Discounts for Business Fleets?

Yes, insurance companies do give discounts for business fleets. However, the discount that you get might not be very substantial. All types of insurance for business vehicles are expensive for a reason. Should you have to make claims on your vehicles, it can cost an insurance company a whole lot of money. You will likely get some kind of a discount due to all of the business that you are bringing. However, one of the best ways to be able to get a larger discount is to shop around for insurance coverage. Usually, you can get a better discount by shopping around than you can get for bringing a company more business through a business fleet. However, you never really know what discounts you will be able to find when you’re shopping around.

How Much Is Business Insurance on a Vehicle?

There is no specific formula that you can use to determine how much business insurance costs for a vehicle. The cost of business insurance really depends on the type of coverage that you have. Usually, the more vehicles that you have to insure, and the more you drive the vehicles, the more you’re going to have to pay for business insurance. A small entrepreneurial business, where you have minimal cargo to carry, could cost you as little as $500 to $1000 a year. However, a business where you are transporting goods and driving all over the place on a regular basis could cost you thousands more. The best way to know how much business insurance costs is to get a quote from an insurance company.

How Much Does It Cost to Add Business Use to a Personal Vehicle?


When you are a small business owner and need to add insurance to a personal vehicle, you will have to pay for business insurance. When this occurs, you are going to have to completely change your insurance policy. You cannot add business insurance to a personal vehicle insurance policy. However, you can add personal use insurance to a business vehicle. Usually, business insurance is much more expensive than personal vehicle insurance. The nice thing about this is that insurance companies don’t charge much to use a business vehicle for personal reasons. In some cases, this type of insurance costs as little as $50 per year on top of your regular business insurance. Definitely, a great deal, especially if you are already paying the business insurance on it.

To Conclude

Whenever you use a vehicle for business, it is important to have business insurance. Not picking up business insurance could cause an insurance company to deny your claim. Business vehicles are a higher risk to insurance companies so they are more expensive to insure than personal vehicles. However, this is an expense that all business owners have to pay. The larger liability coverage and protection you get after a collision compared to that of a personal insurance policy are worth the extra cost.

About the Author: Ashley Miller

Ashley is an insurance content professional and very knowledgeable on all related subjects. Ashley has over 12 years of insurance content writing experience working with various insurance companies throughout her career.