Do you want to know about insurance coverage? Many people think they will be covered by their personal car insurance no matter what. Making an assumption about coverage can be a costly mistake. Many insurance companies require you to file a claim under a business or commercial insurance policy.

Car insurance for independent contractors has become more prevalent than ever due to the number of jobs that involve driving. People who are running their own businesses at home and delivering products to customers always need to look into getting business car insurance.

We’ll break down the differences between personal and business insurance when you can get discounts on business insurance, and when your company pays for business insurance instead of you.

The Risks of Driving for Work

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Insurance companies want you to get a separate policy for work-related driving because the risk of getting into an accident increases when you drive on the job. People who drive for their job get into 50% more car accidents in their lifetime due to increased road exposure.

What is the difference between driving to work and driving to work? Commuting to an in-person job doesn’t mean you need business insurance. You aren’t driving to perform your job. You are driving to get to your job. There is a key difference between them.

People who are driving for their jobs can include postal workers, firefighters, and police officers. All of these examples include people driving for a company they don’t own. In that case, their employer will pay for business insurance.

Individuals who use their vehicles for food delivery and passenger transport services like Lyft, Uber, and Shipt will be required to add coverage to their insurance policy. You don’t need business car insurance if you are a freelance writer who never leaves your home for work.

Many business owners and sole proprietors are trying their hardest to get their businesses off the ground by manufacturing and delivering their products. If you hire people for your business to deliver for you, it’s your responsibility to get business auto insurance for your employees, specifically if they are driving your personal vehicles to do their work.

Business Car Insurance

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What type of business insurance you get is important. They cover different types of accidents. Business insurance for your personal car is going to work the same way as your personal policy for your non-work driving.

If you speed, get into accidents, or pose a risk to your insurance company, your rates will go up. Try to perform to the same high standards when driving for your business as you would any other time. You obviously don’t want to damage your personal vehicle during work hours, just as you don’t want to during your free time.

State Farm and Geico have some of the cheapest rates for business insurance for your personal car. They usually clock in at just over $3,000 per 6,000 miles annually.

Do businesses pay for commercial insurance?

If you are a driver for a business you don’t own, or you are someone else’s vehicle to perform tasks, you should talk to your employer about what business insurance they have. You shouldn’t have to worry about paying for extra insurance unless you’re using your personal vehicle.

Truck drivers are at a higher risk of getting into an accident because of their long hours and stressful tasks on the road.


Truck drivers should take responsibility behind the wheel, too. Semi-truck drivers get into an accident 23.2 times more often when using their phones behind the wheel. It’s important for companies to talk to their employees about safe driving habits so they can get cheaper rates on fleet insurance for their trucks.

Getting business insurance for your personal car is important if you are performing tasks for your job while driving. The specifics of business insurance can be discussed with an insurance agent if you’re confused about anything. Always look into business insurance if you drive for work. You might regret it later if you think you’re covered by your personal policy.

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