As a business owner, you should know one of the vital things for your business is insurance.
Contents
Best Business Car Insurance Companies
What is business car insurance?
To be more specific commercial auto insurance for the cars, trucks, vans, or other vehicles you use in your industry. Please note that your Businessowners Policy (BOP) does not provide any coverage for vehicles you use in your business.
The Business Auto Coverage Form (BACF) is the standard insurance form that almost all insurance companies provide commercial auto coverage. The document clearly states “autos” to include cars, trucks, vans, trailers, or other vehicles.
Is business auto insurance mandatory?
Business auto insurance is not only mandatory, but it is essential for a business. Most states require you to have liability insurance for bodily injury and property damage in case of an accident while you or one of your employees is driving on business.
It is also mandatory for business owners to have uninsured/underinsured coverage or Personal Injury Protection (PIP) in some states.
What’s Included in a Commercial Auto Insurance Policy?
Liability Coverage:
The liability coverage obligates your insurance provider to pay all damages the business legally has to pay. Because liability insurance covers bodily injury and property damage that a covered vehicle caused, and your insurer must pay up to your policy limits.
In the case of an auto liability lawsuit against an insured business, the insurer has to defend the business or settle the lawsuit. But whether to contest or settle the case is entirely up to the insurance company.
As many insurers recommend, a business auto coverage minimum limit is better to be from $1,000,000 to $500,000. A higher limit doesn’t do any good for the premium costs.
In addition, these are some important coverages that you should consider adding to your commercial policy:
Collision Coverage:
Collision and vehicle overturn insured under collision coverage.
Medical payments:
With this coverage, the medical expenses for the driver and passengers in the insured vehicle are covered, regardless of who was at fault.
Uninsured/Underinsured motorist:
This insurance will pay for injuries caused by an uninsured or underinsured driver or, in the case of a hit-and-run driver.
Comprehensive Coverage:
Comprehensive coverage is the best option for covering auto physical damages because it pays for losses from any cause except for collision and overturns. A few exclusions are stated in your policy, such as mechanical breakdown, wear and tear, and acts of war.
Comprehensive insurance covers fire, theft, flood, explosion, earthquake, falling objects, glass breakage, colliding with a wild bird or animal.
Is commercial auto insurance more expensive than personal auto insurance?
Yes, for good reasons too. There is more risk when a vehicle is used for commercial purposes rather than for personal purposes. We cannot tell you for sure how much you usually spend on commercial auto insurance.
Because it heavily depends on the number of vehicles you want to insure, your business’s location, the coverage limits, mileage the insured vehicle is driven, and deductibles you choose.
Best commercial auto insurance companies
1. Progressive
Progressive Corporation is an American insurance company founded in 1937 and is headquartered in Mayfield Village, Ohio, USA. Progressive is the best overall and our top recommendation for business auto insurance.
With about 84 years of service, this insurer provides insurance with reasonable prices and a combination of unique programs and discounts. Progressive is available in all 50 states, which is really a plus.
A.M. Best reviewed Progressive and gave them an A+ rating in financial strength and an A+ rating in customer satisfaction from the BBB.
Progressive Auto Insurance Reviews
2. Nationwide
Our second recommendation for commercial auto insurance is Nationwide. They offer a base business auto policy that covers everything you need. In addition, they have several extensions that you can choose from and add to your policy.
Nationwide Mutual Insurance Company is an American-based insurance company founded in 1926 and is headquartered in One Nationwide Plaza, Columbus, Ohio, U.S.
A.M. Best gave Nationwide A+ for its excellent customer satisfaction and financial strength. The combination of the several coverage options, discounts, customer satisfaction scores, and strong financial strength makes it one of the best options for commercial auto insurance.
3. State Farm
State Farm is an auto insurance provider in the United States founded in 1922, and its headquarters is located in Bloomington, Illinois. This company, like Progressive, is available in all 50 states. State Farm, with its top-notch commercial insurance customer service, is the second-best insurance provider in the J.D. Power 2021 U.S.
Small Commercial Insurance Study, and A.M. Best gave A++ (the highest rating possible) for financial strength rating. According to the National Association of Insurance Commissioners (NAIC), the complaints about State Farm are above the average in 2020.
Unfortunately, State Farm doesn’t have online quotes. You have to contact a State Farm agent to get a quote. But claims can be made online, over the phone, or through their app.
4. Farmers
Farmers Insurance Group, commonly known as Farmers, is a U.S.-based insurance provider founded in 1928 headquartered in 6301 Owensmouth Avenue, Woodland Hills, Los Angeles, California, the U.S. This company is definitely worth a look at.
It provides insurance for a large number of industries. Farmers designed a coverage that can extend to employees’ own vehicles, but it’s only valid when the vehicle is driven for business purposes. Farmers also offer coverage for specialized industries and losses.
Farmers is the fourth-best insurer in the J.D. Power 2021 U.S. Small Commercial Insurance Study, and according to that study, they have excellent customer satisfaction. A.M. Best also reviewed and gave Farmers an A- for its financial strength.
Like State Farm, Farmers Insurance Group does not have online quotes, and if you want one, you have to work with a local agent. Sadly, Farmers offer limited discounts such as bundling discounts, safe driving habits, and others. Policyholders can submit a claim over the phone or online.
They also have a highly rated mobile app, which gives their customers access to their policy anytime, from anywhere.
