A former insurance producer, Laura understands that education is key when it comes to buying insurance. She has happily dedicated many hours to helping her clients understand how the insurance marketplace works so they can find the best car, home, and life insurance products for their needs.

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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products, including home, life, auto, and commercial, and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, mainly in the insuranc...

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Reviewed by Leslie Kasperowicz
Farmers Insurance CSR 4 Years

UPDATED: Oct 18, 2021

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Important facts to know...

  • Business car insurance covers for damages incurred in the line of duty while attending company’s workshops, sales and marketing campaigns and more
  • You can take various levels of coverage for your business travel including business use by you, business use for all drivers, and commercial traveling policies
  • Business owners can take a Business Owner Policy (BOP) to cover for their employees on business assignments and other company properties

If you’re traveling for a business trip and you’re using your own car, you will need to purchase business car insurance.

It is slightly different from the standard auto insurance policy that covers for commuting to work and social use. Other people on business trips may also prefer renting cars for the period they are working in a region or city.

Business car insurance will give you coverage for a wide array of uses such as the following:

  • traveling between various workstations
  • driving around other company’s employees
  • visiting your clients

Most insurance firms will rarely charge higher premiums for business travel car insurance, but it’s still critical to maintain your standard cover for ordinary use. If you drop your regular cover, it may occasion the insurance company to invalidate your policy.

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Learn Your Policy Coverage

Every insurer will ask numerous standard questions to ascertain some parameters that will determine the cost of your policy and whether you’ll be covered or not. You need to know what you need for the trip and have your answers ready.

For example, the insurer will want to know:

  • average work-related mileage you’ll be covering in a year
  • the region of your operation
  • the nature of your work

It may not be accurate, but it should give the insurer an estimate of how much risks they’ll be taking to insure you. That’s what determines the amount of premium you will pay.

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Different Levels of Policy Coverage

No single business car insurance is standardized for all users, but every insurer will tailor their policies to suit your unique business needs.

You will find a broad range of options available in the market, and you should take your time to shop around and compare offers from various insurance companies.

The majority of policies will fall under any of the following categories:

  • Business use by you – This policy covers the primary driver and may include their spouse as long as they’re driving on business-related trips. It allows you to drive even away from your usual work location.
  • Business use for all drivers – It offers a similar cover as the first option, but you can add many drivers on the same policy to allow for flexibility during business trips.
  • Commercial traveling policies – This is for people who drive business cars as their permanent job. The drivers are likely to take a lot of time on the road since they’ll be driving employees and business executives to various locations including dropping and picking.

Since business car insurance policies are complicated and factor in various parameters, it’s important to take as many quotes as possible from reputable insurance carriers and understand their terms and conditions before signing up for one.

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Compare Quotes and Find a Good Deal

To get a competitive price, compare many quotes side by side and choose the most flexible cover at affordable rates. You may also seek for referrals from those who use their cars for business trips and find out which insurance providers they prefer.

Another important factor to consider is the range of discounts available for a wide array of clients.

Some of these benefits will only come when you ask for them. For example, your occupation or professional body could earn you some good discounts.

Your driving record and credit history also matter as far as your premium cost is concerned. Make a call to the insurance carrier and make inquiries for a better deal.

Cutting the Auto Insurance Costs

Several factors affect the cost of premiums. It’s paramount to take care of the factors within your control to save on costs.

For example, the type of car you drive will increase or reduce your premium costs. Consider an economical car with a smaller engine capacity for business trips. You will not only lower your premiums but also save on fuel costs.

Insurance firms also give discounts if you install security features like steering locks, immobilizers, alarms, and tracking gadgets. Find out from your insurer which features they’ve approved and can earn you a discount.

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How to Handle Accident When on a Business Trip

Several questions come to your mind when you get involved in an accident during a business trip. You may need to know who pays for the damage. Will your auto insurance cover cater for the damage, or will the company’s insurance cover take it up?

If you spend a lot of time on the road on business assignments, you might need to know how to handle yourself in the case of an accident.

Accidents can be at-fault or no-fault.

The insurance companies will analyze the accident and find out who was at fault to know who would cover for the damage.

If you’re at fault, your insurance cover will come into play. Either way, it’s important to get a police report and inform your insurance company immediately.

That way the other motorists insurance should cover the damages. Taking photos of the cars at the scene of the accident will help your case. Also find a few witnesses to the accident who can give statements on what transpired.

Type of Policy

The kind of auto insurance coverage you carry will determine how the claim is made.

If you’re using your personal car for business trips, you may need to take up business car insurance in addition to your standard cover. If the company provides transportation, then it comes down to a commercial policy.

The Department of Motor Vehicles requires some businesses to register their fleets as commercial vehicles and acquire the necessary commercial insurance covers. If the company owns your car, ensure that it’s registered and has the appropriate insurance covers.

If you get involved in an accident on a company vehicle, follow the same reporting procedure, only this time, your employer will take up the process of filing a claim.

Obtain a police report and submit it to your employer through the legal department, if you have one.

Many business trips may at times opt for rental cars. Pay due attention to how you’re listed on the car rental agreement as this will determine a lot in case of an accident.

If you’re at fault, you need to be sure that the damages will not be passed down to you, but the comprehensive cover or collision cover will cater for the loss. Your personal auto insurance cover should cover your medical expenses.


As a business owner, consider taking a Business Owner Policy (BOP) which carries liability for personal injuries and damages to properties of the firm. You can endorse the coverage to extend to non-owned or hired vehicles.

This will ensure that your business doesn’t go down due to an accident. Your employees are also covered in case of injuries incurred in the line of duty.

Shop online and compare quotes from reputable insurance carriers to get affordable deals. Use our free comparison tool today.