Auto Insurance for Small Businesses: The Best Companies in 2024

Some of the best auto insurance companies for small businesses are willing to offer the best deals to those just getting started on their journey. If you need help meeting other minimum requirements for insurance, aside from your car insurance rates, these companies will also be willing to help you obtain coverage. You should ensure that you meet the federal and local requirements for small business insurance to avoid any future hassles.

Since you’re researching rates for the best auto insurance companies for small businesses, enter your ZIP code into our free quote tool to discover what you could pay for a new policy today.

What are the best small business insurance companies?

If you’re the owner of a small business, you should be prepared for accidents that are bound to happen. Unfortunately, you can’t prevent customers and employees from getting into accidents, but you can ensure that any costs are covered to avoid legal issues.

According to the American Small Business Administration, business insurance can help you secure your personal and business assets if something happens on your property or to your vehicles. Otherwise, if found liable, you could be faced with lawsuits or other charges.

Some of the most popular small business insurance companies include State Farm, Nationwide, The Hartford, and Liberty Mutual. While the insurance type you need will depend on your business, these companies will help you get started with coverage. Established insurers will also have agents who can provide information about insurance requirements and more.

How does small business auto insurance work?

Small business auto insurance is a program meant to protect your property and business from any legal liability when an accident occurs. If you have enough insurance, you could avoid paying out of pocket for damages to your property or for something that happens to someone else.

There are different types of small business insurance, including auto insurance for any company vehicle. This policy will primarily work like other auto insurance products, except that some policies also offer coverage for limited business assets located within the car at the time of the accident.

What does small business auto insurance cover?

As previously mentioned, small business auto insurance works in a very similar way to its traditional counterpart. Not only will it require you to drive your vehicles on the road, but it will also protect you from being financially liable in case of an accident. Some of the property that will be affected by your auto insurance includes the following:

• Vehicles you use for business that have been damaged or stolen
• Someone else’s property to which damages have occurred
• Private property protection against theft or other loss 

Having an auto insurance policy for your business can help save you a lot of money if you’re frequently using vehicles in your work. If you were in an accident without a valid insurance policy, you might have to pay out of pocket for lost merchandise as well as any damages.

What won’t small business auto insurance cover?

Whether or not your insurance will cover something will depend on the type of insurance and the extent of your coverage. However, there are some things that any auto insurance policy won’t cover:

• Anyone driving the vehicle who isn’t employed by you or otherwise covered
• Getting too many tickets or a DUI under the auto insurance coverage
• Not paying your premiums for an extended period

Your insurance company will want you to minimize risk and increase their chance of making a profit on your insurance policy. If you’re risking the trust that the insurer has placed in you, you’ll find that you will have to pay more for your insurance unless you lose it completely.

What insurance companies are best for commercial auto insurance?

A good auto insurance policy for your commercial vehicles can prevent you from having to pay out of pocket for repairs, or for a new car, if the worst happens. These are some of the top 10 commercial insurance companies for auto insurance:

• Geico
• Progressive
• Nationwide
• Travelers
• Liberty Mutual
• Allstate
• AIG
• Great American
• State Farm
• Chubb

Not only will these companies insure your vehicle, but some are even willing to bundle limited asset protection at no additional cost. This means that the insurer will cover a base level of your business property, including an extra benefit for enrolling in a competing program.

What insurance does my small business need?

There are different types of small business insurance that you’ll need before you open. Some policies are legally required, while others will rely on your business’s specific needs. If you’re uncertain, you should consider what auto insurance coverage in your state is necessary and then determine what business insurance is required in addition to it.

What small business insurance is legally required?

For starters, the federal government requires that all businesses have a minimum amount of the following:

• Workers’ compensation insurance 
• Unemployment insurance
• Disability insurance
• Auto insurance on road vehicles 

This is meant to protect injured workers or those who need to draw from business assets due to illnesses incurred at work. If your business has to pay out on one of these issues, you can expect your rates to increase. In addition, states may require more business insurance than this, including ensuring any vehicles you’ll be using for work.

The good news is that most of your insurance costs will be tax-deductible, increasing what your insurance can save you by that much more.

What are other popular types of small business insurance?

According to the SBA, you may want to obtain more insurance coverage after purchasing the minimum amount required by federal and local laws. In addition, you may want to offer additional coverage to those who frequent your business outside of your employees and property.

If you’re considering how you can further protect those in your business, here are some additional insurance options:

• General liability – It protects against fees when someone is injured, and it also includes property damage, medical expenses, libel, lawsuits, etcetera.
• Product liability – It protects against the costs of damaged products that cause injury or other harm.
• Professional liability – It protects against costs resulting from malpractice or other errors on your part.
• Commercial property – It protects against the loss or damage of company property in the event of vandalism, fire, theft, etc., and it can also work as additional coverage on products not protected by your auto insurance.

There are other insurance types from which you might benefit, but it’s best to do research based on your business. Likewise, some of the above policies won’t apply to every business, as someone who doesn’t own a physical product likely won’t benefit from commercial property insurance.

How much does small business insurance cost?

Many factors will determine the cost of your insurance policy for your small business. For example, the type of coverage, the amount covered, and the number of employees will all affect how much you pay each period.

According to Progressive, these are some of the average costs for small business insurance:

• General liability – $57 a month
• Business owner’s policy – $85 a month
• Workers’ compensation – $80 a month
• Professional liability – $50 a month

If you were only receiving these insurance policies, you could expect to pay approximately $272 a month or $3,264 a year. However, when you add in the estimated yearly cost of approximately $1,500 for auto insurance, you could be paying nearly $5,000 a year for your entire insurance bundle.

What affects the cost of small business insurance?

The cost of your insurance policy will largely depend on your business and the amount of property you’re attempting to insure. If you have a large workforce, you will also have to shell out more to cover the legal insurance requirements for your employees.

Here are some of the factors that can affect your auto insurance:

• Number of employees
• Property insured
• Number of policies
• Recent accidents and claims

As a small business, you may have fewer employees and property to insure, but you should still ensure that you have a base level of coverage. What’s most important is that you try to minimize any risks or accidents that might occur on your property, as this will stand out like a red flag to your insurer.

How can my business get the lowest insurance rates available?

A big part of owning a business is managing costs. If your insurance takes up too much of your budget, you’ll want to lower costs. Luckily, there are proper methods to attain lower commercial insurance rates.

If you think you’re paying too much for your small business insurance, consider making the following changes:

• Raise your deductible – If you increase the amount you have to pay before your insurer takes over on specific policies, they’ll be more inclined to remove some of the from your premiums.
• Cut coverage you don’t need – Insurance needs change over time, as will your business. Consider your insurance and determine if anything has become unnecessary or redundant in your policies.
• Find bundles – If you can find an insurer willing to bundle all of your required policies together, they’re bound to offer savings for getting all your coverage from it.
• Shop around – Perhaps most importantly, don’t settle for the first insurance quote you get for your small business. Instead, consider competing insurers to obtain the best commercial insurance today.

By taking the time to consider your current coverage and how you best think it can improve, you can save a lot on your premiums. You’ll never be tied to one insurer either, so it may be worth considering if any other companies are willing to give you more affordable rates.

How can I find an excellent small business auto insurance company?

When you first begin looking for business insurance, you may be worried about finding an insurer who can offer you the right coverage for your business in the best way. Fortunately, there are ways that you can understand an insurer’s ability to meet its financial obligations while also confirming its ability to treat customers properly.

What are an auto insurer’s customer and financial ratings?

Several objective rating services out there have dedicated themselves to being watchdogs of insurance companies and other private sector businesses. The following are some of the most popular small business insurance companies:

• Moody’s
• Standard & Poor’s
• J.D. Power
• Better Business Bureau

These oversight companies use different methods and rating scales to determine an insurance company’s ability to meet its obligations. Without someone tracking, it would be hard to understand an insurer’s more significant effect on the industry.

Small Business Auto Insurance: The Bottom Line

Some of the best commercial auto insurance industries are the same ones that can provide you with standard business insurance. If you can bundle your coverage at one insurer, you can expect to pay much less for that coverage than if you only got one policy type. You must meet your state’s minimum business auto and employee insurance requirements.

While you’re researching the best auto insurance companies for small businesses, enter your ZIP code into our free quote tool to see what you could pay for small business auto insurance today.