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How to Add Business Insurance to Car: Quotes From $11

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It's not uncommon to find business owners using their personal cars for work purposes.  If your car provides daily commutes to work and later access to a commercial activity, you'll need to secure business insurance on top of your personal auto insurance.  You can use your car for various business activities, including:

  • Driving to corporate meetings and conferences

  • Visiting your company's various branches

  • Providing colleagues or employees lifts to work-related locations

  • Driving to visit clients' premises

  • Running work-related errands

  • Hauling goods or materials

  • Delivering food as side hustle


Business car coverage provides additional protection to cover the business use of the car, and your standard auto insurance doesn't offer that. It'll ensure your car is covered at all times. You need to know how to add business insurance to car. In this discussion, understand the process and familiarize yourself with the nitty-gritty of adding business insurance to car. 


Before we delve into how you add business insurance to your vehicle, it's essential to know what business car insurance is.

What is Business Car Insurance?

It is worth noting that your Business Owners Policy (BOP) does not cover any of your cars. That means you'll need to add business insurance to your car, a separate policy.

Many states require business owners to buy liability insurance coverage to cover third-party bodily injury and property damage sustained due to car accidents when you or an employee drives the car for business.


Additionally, it’s also wonderful if you decide to get uninsured/underinsured motorist coverage or medical payments coverage (MedPay).


A driver without insurance or not having enough insurance won’t pay for your medical expenses and property damage. That’s why there’s uninsured/underinsured motorist coverage to help you out. Underinsured/uninsured motorist coverage will take care of your medical expenses and will reimburse you for any damaged property if the driver at fault for the accident can't cover you with his insurance.


Medical payments coverage or MedPay will also pay for your treatment in the event of a vehicular accident. However, most commercial car owners use this one to cover passengers. No other insurance policy covers passengers except this one. In practice, medical payments coverage will pay for the emergency treatment of passengers injured by a vehicular accident. Coverage applies whether it’s the other driver’s fault or your fault.


How Much Auto Liability Coverage Do You Need to Have?

There’s no fixed amount of auto liability coverage you need to get. It all depends on which state your car is registered. Here are the minimum commercial auto liability coverage required in select states:

  • New York - Cars used for business purposes must be covered with commercial auto insurance having a $25,000 per person and $50,000 per accident bodily injury coverage. As for property damage liability, the owner of the commercial auto must carry at least $10,000 in coverage

  • California - Vehicles used for commercial purposes must carry a $15,000 per person and $30,000 per accident bodily injury coverage. Property damage liability coverage, on the other hand, must not be lesser than $5,000

  • Texas - Business car insurance must provide bodily injury coverage having a $30,000 per person limit and a $60,000 per accident limit. Property damage liability coverage must not be less than $25,000

  • Florida - Each owner who wants to add business insurance to their car must see to it that there’s $10,000 per person and $20,000 per accident coverage for bodily injuries. Property damage coverage shouldn’t be less than $10,000.

  • Illinois - In Illinois, owners are required to get business car insurance having a $25,000 per person and $50,000 per accident bodily injury coverage. Property damage liability coverage must not be less than $20,000.


Do You Need Physical Damage Coverage Included in Business Car Insurance?

Physical damage coverage is another inclusion in business car insurance. Decide to get this if you don’t want to pay hefty costs for vehicle parts repair or replacement. This coverage has two forms - collision and comprehensive.


As already evident by its name, collision insurance will kick in if your commercial vehicle gets damaged in a vehicular accident - particularly, a collision with an object or car. Collision physical damage coverage pay for parts repair or replacement on your behalf.


You should know one thing though. Collision physical damage coverage won’t cover damages your car incurred after hitting an animal on the road.


Comprehensive physical damage coverage, on the other hand, covers damages not resulting from a collision. If your vehicle is damaged by fire, lightning, theft, vandalism, and other related incidents, then comprehensive physical damage coverage will pay for parts repair or replacement, not collision physical damage coverage.


What Does Business Use Policy for Car Cover?

There are three types of business car insurance, and each provides a different level of coverage. They include:

  • Class 1 Business Insurance – This policy protects you during your trips, including site visits as part of your business responsibilities.

  • Class 2 Business Insurance – Class 2 provides the same coverage as Class 1 business insurance. The only difference is that it allows you to add a driver's name to the policy.

  • Class 3 Business Insurance – This is a comprehensive business car policy. It's ideal if you drive for hundreds of miles every week and have multiple drivers you need to be named under the policy. It's also the best coverage if driving is a huge part of your job, for instance, door-to-door sales.


Other Insurance Policies to Purchase for a Commercial Car

Depending on how you use your vehicle for business purposes, you might need other insurance policies aside from business car insurance such as:

  • Inland marine insurance

  • Cargo insurance

  • Trailer interchange insurance

  • Bobtail insurance

  • Non-trucking liability insurance

  • Unladen insurance


Inland Marine Insurance

Are you using your car to take equipment to different project sites? If this is the case inland marine insurance can help. What this policy does is reimburse losses if your equipment gets damaged or lost during the trip. Note that inland marine insurance is offered as a stand-alone policy or as an inclusion in motor carrier policy.


Cargo Insurance

Cargo insurance is essential for individuals that use their cars to deliver materials and goods to make money. This type of insurance reimburses the customer if his or her materials or goods are lost or damaged during the trip because of a vehicular accident, fire, theft, malicious mischief, and other covered perils.


Cargo Insurance Requirements

You’ll need to have specific cargo insurance coverage, which will be mandated by contracts you enter with customers. On most occasions, you only need to get $100,000 cargo insurance coverage. But still, some owner-operators are required to get a $500,000 cargo insurance to satisfy the terms and conditions of contracts.


Trailer Interchange Insurance

This is another useful insurance for those who haul goods or materials using their autos. Most owner-operators borrow or rent a trailer through a trailer interchange agreement. In connection, the purpose of trailer interchange insurance is to shoulder the liability of the owner-operator should a rented or borrowed trailer get damaged while being used.


Bobtail Insurance

Bobtail insurance is useful for cars that can be attached with a trailer. The function of this policy is to cover costs if the car with a trailer attached causes damage while it’s on the way to haul cargo.


Non-Trucking Liability Insurance

A commercial vehicle that can be attached with a trailer might be used by the driver for personal errands. The purpose of nontrucking liability insurance is to cover costs if the driver causes an accident while doing so.


Unladen Insurance

Sometimes confused with bobtail insurance and non-trucking liability insurance, unladen insurance covers costs if a commercial vehicle causes an accident while an empty trailer is attached or no trailer is attached. Also, this one provides coverage regardless if the accident happened while the commercial vehicle is used for business purposes or personal purposes.



How Do I Add Business Insurance to My Car?

When writing business car insurance, many insurance carriers use the Business Auto Coverage Form (BACF) as the standard document. Although the form indicates "Auto, " the vehicle under coverage is not limited to a small personal car. It can cover a van , truck, trailer , or any other vehicle designed for use on public roads.

You'll have to answer various questions from your insurance agent when purchasing business insurance for your car. Some of these queries include:

  • Who'll be driving the car?

  • Do you own, rent, or lease the car?

  • How do you use the car for business?

  • Are you likely to drive your car for your business?


The answers you provide to these questions will help your broker determine the type of coverage you need.

Generally, only a BACF can offer the right protection for your business needs. We live in a litigious society, and any accident leading to property damage or bodily injury can result in a lawsuit that can devastate your business financially. Insurers recommend that you get $500,000 to $1,000,000 in coverage. That's how to add business insurance on car.

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How to Add Food Delivery to Car Insurance?

Adding food delivery to your car insurance means you pay more than your personal car coverage. Regardless, it's required by law, and it saves you from penalties like tickets and driving suspensions. If you make money delivering food, it would be best to add food delivery insurance to your car.

 

There are three types of insurance you can choose when buying insurance for your food delivery business:

  • Commercial policy - Commercial food-delivery coverage covers you in the event of an accident. It's more expensive than standard auto insurance, although the rates vary based on factors like:  

    • Demographics

    • The type of vehicle

    • Driving record

  • Business-use policy - There are high chances that you travel to far-off destinations and make sales when delivering food. Your personal auto insurance may not cover you if you are involved in a collision without a business-use policy. 

  • Personal Auto Insurance - As mentioned, your auto insurance might not cover any accidents or property damage during business use. Nonetheless, having it means you've met the required state minimums. It's critical to inform your insurance agent how you use your car to know their coverage requirements, lest they deny you a claim or decline policy renewal entirely.


How Much Does It Cost to Add Food Delivery Insurance to Car?

Food delivery auto insurance costs vary depending on your driving record, credit score, where you live/operate, and more. The average cost of food delivery car insurance can be as low as $20 per month or $240 a year. 

 

Below is a table to give you an idea of how much you’ll pay considering that you’ll be working for any of the food delivery companies shown:


Cost per Month Cost per Year
Amazon Flex $20 $240
Amazon Fresh $24 $288
Caviar $32 $384
Doordash $35 $420
Postmates $41 $492
Ubereats $46 $552

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How Much is It to Add Business Insurance to Car?

How much to add business car insurance will depend on several factors. If you’re asking yourself how much extra to add business insurance on my car? T hen know that driving frequency is one factor to consider. 

 

Business vehicles are driven more through high traffic and on unfamiliar roads. This increases the risks of accidents and damage, which in turn increases the number you make claims. If your driving record indicates that you're likely to make a claim, your insurance company will charge you more. But learn the knack for saving on commercial insurance, and you’ll still get cheap rates.

 

There's no standard cost of how much to add business insurance to car. Several factors affect the price. They include:

  • The brand and model of the vehicle

  • How you use the car

  • The number of business trips the car will make

  • Where you live

  • Your occupation

  • Your claims history and driving record

  • Car mileage/age

  • Your age

 

But let’s say, you’re asking how much to add business insurance to my car if the policy limit is $1,000,000 ? A coverage plan with a policy limit of $1,000,000 has a median cost of $142 per month or $1,704 per year. Considering the median cost is a more accurate approach to estimating how much to add business cover to car insurance. This is because it's the figure in the middle, an outlier between high and low premiums.

 

For further reference, here’s a table showing the cost of the best companies to work with when adding business insurance to a car. 


Cost per Month Cost per Year Best for
CoverWallet  $100 $1,200 Business car insurance online quotes comparison online
Thimble  $115 $1,380 Short-term business insurance for car
Next  $134 $1,608 Adding business insurance on a car with discounts. Also, sending proof of insurance as a text message, photo, or email
Hiscox $138 $1,656 Adding business insurance on a car with proactive support

Compare Cheap Quotes of Business Insurance for Car Online

Get all the best quotes from leading providers in a click of a button!

Best Companies to Work with When Adding Business Insurance to a Car


CoverWallet


Pros

  • Allows you to compare commercial auto insurance quotes online

  • Easily allows you to add business insurance to a car

Cons

  • Not an insurance company but a broker selling the quotes of its partners 


CoverWallet , with its online quotes comparison platform, provides you with all the offers of companies of commercial carriers that have business insurance to add to your car. You can also get covered immediately with CoverWallet and enjoy managing your policies online. 


Best for:  Comparing business insurance quotes for car online

Average Cost: $100

Our rating:   10/10



Thimble


Pros

  • Business insurance for your car, which lasts for only hours, days, weeks, or months

  • Fast online customer support 

  • Instant online proof of insurance

  • $0 deductible

Cons

  • Some customers reported in Better Business Bureau that Thimble wasn’t fast in handling claims



Thimble offers short-term business insurance for cars used in food delivery, trucking, and other commercial purposes. This company’s policy can be availed for only hours, days, weeks, or months. 


Best for: Short-term business insurance for car

Average cost: $115

Our rating: 9/10



Next

Pros

  • Enjoy discounts when bundling business insurance policies to be added on your car

  • Certified insurance agents that are always eager to help

  • Get insured quickly

Cons

  • NEXT’s rates can be very high for customers with cars having a high mileage


Next’s offers business insurance to be added on a car, which you can bundle and purchase at a cheaper price. Just like CoverWallet, Next offers a very streamlined online insurance management experience. Pay your bills online and send proof of insurance to someone in an instant. 


Best for: Adding business insurance on a car with discounts. Also, sending proof of insurance as a text message, photo, or email

Average cost: $134

Our rating: 8/10



Hiscox

Pros

  • Generous policy limits

  • Offers free business resources

  • Proactively assists you when deciding what business insurance policy to add on a car

Cons

  • Customer reviews aren’t very positive


Hiscox is great if you’re looking for a company that offers business resources aside from business insurance for a car. If you’re not sure how much coverage you need, then know that Hiscox’s agents are always on the line. In case you don’t want lengthy talks, then Hiscox devised a tool that tells you how much and which coverage to add to the car.


Best for: Adding business insurance on a car with proactive support

Average cost: $138

Our rating: 8/10



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