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Business Auto Insurance

For many small businesses, "the office" is wherever the work is. And that, of course, requires travel - often, by car. Whether you and your employees drive your own vehicles, your business has company cars, or you rent a car to get around, knowing what kind of commercial auto insurance you need to protect your business can be tricky.

In addition to personal vehicle insurance and rental car insurance available from a rental car agency, there are two other types of automobile insurance you should know about: hired auto and non-owned auto coverages. Both can be added as endorsements on your general liability insurance policy.

Hired Auto Insurance Coverage

When you, the employer, or one of your employees has an accident in a rental car, three different insurance policies can potentially come into play. First, the driver's own auto liability coverage still applies, just as if he or she were driving her own car. So, if there's an accident, the employee is personally liable for injuries or property damage to other parties.

The driver may also have hired car physical damage coverage as part of his or her own personal auto insurance policy, which would cover any physical damage to a rental car. Be careful, though, as some "comprehensive" and most "limited" personal auto insurance policies don't include hired car coverage.

Second, there's the rental car agency's physical damage coverage and liability coverage that you are offered at the time of rental.

And third, there's hired automobile coverage - an additional coverage that either supplements or replaces a car rental agency's liability coverage, by protecting your company in the event of a lawsuit resulting from an accident.

Because hired auto insurance only covers liability to your company - not physical damage - it's always a good idea to be sure the driver has hired car physical damage coverage as part of his or her own policy, or to purchase the rental agency's physical damage coverage whenever you or an employee rents a car.

Non-Owned Auto Insurance Coverage

If you and your employees typically drive for business purposes using personal vehicles, you'll want to know about non-owned auto coverage. This type of insurance protects your company against lawsuits that may arise when one of your employees has an auto accident while driving a personal vehicle on company business.

As with hired auto coverage, the driver's personal liability insurance still applies if the driver himself is sued, and the driver's personal auto property damage insurance should cover any physical damage resulting from an accident. What non-owned auto coverage does is protect your business if the other party involved in the accident decides to sue your company.

Do I Need It?

To protect themselves against any liability resulting from an auto accident caused by the or one of your employees while working on a client project, some clients may require your business to carry auto liability coverage. Typically, such coverage is required in contracts with language such as: "Contractor shall carry bodily injury, property damage, and automobile contractual liability coverage for owned, hired and non-owned autos with a combined single limit of liability for each accident of not less than ,000,000."

But even if your clients don't require it, hired and non-owned auto coverage may be a smart investment. If an employee of your company has an auto accident in their own vehicle or in a rented vehicle while on company business, and their personal insurance is not enough to cover the claim, your company can be held responsible for the excess amount. And of course, there's always the risk that your company itself will be sued.

While the cost of these types of claims can be very high, the cost of protecting your business against them with hired and/or non-owned auto insurance is very low - usually less than 0 per year.

Frequently Asked Questions

  1. QUESTION:
    What's the cheapest business auto insurance company?
    There are different business auto insurance companies, I've heard Erie insurance is one of the best ones, do you know of any other companies that might be better or similar? thanks

    • ANSWER:
      I dunno about best, and I dunno what you mean by "business". However, my buses are insured through Lincoln General and/or Lancer. Lancer is one of the best in commercial insurance, and they go after nuisance claims with a hammer (which is good, as it keeps your costs down!) and they also have various safety materials you can "borrow" for a safety seminar you can hold at your place. Lincoln General is not quite as proactive, but they do send an auditor / evaluator to check up on your risk-abatement which also helps to keep your costs down.

      Both are "commercial auto/truck/bus/limo" insurance companies.

  2. QUESTION:
    How much does business auto insurance and basic liability cost?
    I am in CA, and I am doing a school project. the business is only 3 people including myself and the auto would only be one 2001 work van. its a pet sitting business so there are very little assets( under 20,000). Even a good guess would be appreciated. thanks a lot

    • ANSWER:
      To be honest, there isn't a single person who could answer your question in yahoo answers unless they were at work (an insurance company) and ran a quote for you. There are many many variables that are fed into a risk probility formula to determine your annual premium.

      Things to consider: Prior accidents or claims for all 3 of you, what city in CA, how many miles per/yr would the vehicle be driven, how far from the registered business address would it go, is your business sitting on a fault-line, ect. Break out a phone book and start calling around. There are more than enough companies that will offer a free quote over the phone to get your business. When I got my own first auto policy, I literally called about 20 companies to compare. The differences in quotes between minimum and maximum were over 40% variation. It's best to shop around. Good luck in your venture.

  3. QUESTION:
    I need to switch my Business property/auto insurance to another company, what are some good insurance company?
    I currently have my business insurance with NationWide, AND it is the worst EVER, I need to switch to another insurance company that's able to write business policy for both property and automobile.

    Please suggest some good and reputable ones, thank you.

    • ANSWER:
      We could provide you more meaningful info if you let us know what state you are in. Not all companies write coverage in all states.

  4. QUESTION:
    Trying to come up with a slogan for new auto insurance business?
    Can anybody please help me come up with a catchy slogan for a new auto insurance business I am starting

    • ANSWER:
      Things Happen After an Insurance
      .
      Nothing Works Better Than an Insurance.

      My Goodness, My Insurance!

      A Finger of Insurance is Just Enough to Give Your Kids a Treat.

      The Insurance For All Ages.

      Leave the Insurance to Us.

      Did Somebody Say Insurance?

      A Day Without Insurance is Like a Day Without Sunshine.

  5. QUESTION:
    If you're an Insurance Agent (Auto, Home or Business) do you have to carry your own Errors and Omissions Ins.?
    If you're an Insurance Agent (selling Auto Insurance, Business Insurance or Home Owners Insurance) do you have to carry your OWN 'Errors and Omissions' Insurance? Or is it provided by the Company you are working for?
    (does your Employer carry the Insurance for you? or do you have to purchase the insurance and keep it up to date on your own?)

    • ANSWER:
      It will depend upon the contractual arrangement you have. If you are an independent contractor you will most certainly need to purchase your own E & O insurance. On the other hand if you are an employee of the company or agency they will normally include you as an insured under their policy.

      Do not assume you have coverage. This is an important point to clarify.

  6. QUESTION:
    How can I start an auto insurance business in California?

    • ANSWER:
      If you have no idea how to start it, you should start by getting a job working for an auto insurance business. That way you can learn about the business.

  7. QUESTION:
    where can i find auto insurance without a business exclusion?
    i am a delivery driver and finding auto insurance with out a business exclusion is nearly impossible! i have to have this type of insurance to continue working! help me!

    • ANSWER:
      You can purchase a private passenger vehicle policy with a classification for business use. I write them all the time. It's easy.
      Call State Farm. Other companys may do it too.

      Just ask for business use on the cars. It's not commercial because it is not a commercial vehicle like a tow truck. It is private passenger classified for business.

  8. QUESTION:
    How is auto insurance (a contracted business service within a capitalist economy) legally enforceable?
    How can a government, who supposedly stays as far out of a capitalist economy as possible, enforce that you purchase auto insurance? Isnt that a consumers right to buy or not buy?

    One could argue that the privilege to drive at all is granted by the government, and you should abide by their requirements. But by that logic, wouldnt having insurance first be a prerequisite before you could get licensed?

    • ANSWER:
      First.. I might be ignorant but I thought the USA was the first capitalistic country of the world, so by "that logic" how can their government try to stay "out of it" as much as possible?? If a country is capitalistic, you'd think that it is because of the government that it has and nothing else.

      But anyway, call me an idiot or a dancing fool (I am dancing right now..) and here's to your question.

      It is all about not being able to save up 10 grand, isn't it? Or is it all about having to show off your masculine attributes by having a car that's flashier than mine? Or a mixture of both and who knows how many more ridiculous factors
      Think about it. I mean.. how difficult is it to get car insurance nowadays?
      If you are able to buy a car with your own money, maybe you don't have anything to prove and so you just need a car for transport.. you know.. something that's 10 years old will then do.

      You don't live beyond your means as you have a brain and can use it and so there's plenty of cash in the bank. After all there have been years of plenty (haven't there?)

      So you are now buying something that hasn't had a tough life, not very sporty at all and not too fashionable but sound, it won't cost you the earth as it isn't fashionable and so with not even 3 grand you get something that's done 27.000 miles and has service history.

      Maybe get some new tyres and brakes as it's been garaged for the last 9 years and the tyres cracked and the brakes got a bit glazed.. give it a full service and a new battery. Maybe it'll be another 00.. so..newly serviced, spanking new tyres, brakes wow.. it'll serve you for the next 10 years now won't it. For less than 5 grand.

      Now you can get liability coverage for it. Get medical coverage for your self and passengers and that's it. You don't need full coverage.
      You are a good driver so you have never had a claim in the last 15 years and so your insurance will now cost you about .50 a month.
      That's peanuts.. most people you know spend that much on BEER in just a week end.. but no..

      Maybe your insurance il 5 a month because you claimed 3 times in as many years and have no money saved up to buy the latest, flashest model and so in the end it isn't your fault but the government's.

      But this I mean in general.. not especially YOU..

  9. QUESTION:
    I'm a young man looking to start a business. I have looked into Auto Insurance Agency.?
    Since I live in CA Auto Insurance would work well for me. There are a few Independent companies that seem to do well.

    What opitions do I have were finance is concern. I have never had any credit cards, auto loans, BK, Repo...

    Can I run my business out of my home?

    Where can I go to find all of my office supplies?

    • ANSWER:
      you have to pass an insurance test and get licensed first - you'd be a lot better off working for another agency to start until you got a large enough customer list list that you could go out on your own (years for that), otherwise, you will starve trying to start a business from scratch like that with no other income

  10. QUESTION:
    How much would Workers Comp, Liability, and auto insurance be for my small business?
    Hello, i am in the process of starting a new business and i wanted to know how much it would cost per month to have auto insurance (for one old truck to transport employees to mow lawns, only driving within one city). Workers comp, and liability. We will make about 80,000 a year total just two or three guys (im one of them) working.

    • ANSWER:
      Insurance costs are going to vary based on your location. To find specifics for your situation, you need to call an insurer. The other poster did a good job in giving you some rough ball park figures but you just won't know for sure until you call around. If you are looking for some averages, here is a collection of the 16 most asked lawn care business questions.

      I hope it helps.

      http://lawnchat.com/?p=340

  11. QUESTION:
    Can I add my business vehicle to my normal auto insurance policy?
    I am the sole owner of an S Corporation and I am about to purchase a used vehicle that will be owned by my Corp. The vehicle wont be used for anything more than going to the store to buy paperclips due to the nature of my business. Can I include this on my normal personal auto insurance policy? Or am I required to take out a policy solely for my corporation?

    Thanks

    • ANSWER:
      If you just use the vehicle to buy paper clips you could state that you don't need a vehicle at all to run your business... after all who is to say that you are running a vehicle in the course of a business if you have a box of paper clips in your car????
      But since you need your clips to run your business, you could deduct your car expenses from your taxes, including your business car insurance.
      You could then drop your normal policy and just use your business car for private use. Obviously you would have to declare that a proportion of the time that the car is used isn't for business, let's say 50/50 in that case you can only deduct 50% of the car expenses off your taxes including half what you will spend to buy your car etc etc.
      Your accountant will know, if you don't have one, ask your taxman, they should explain.

  12. QUESTION:
    Do you think there has ever been a car accident in-front of an auto insurance business?
    The irony?

    • ANSWER:
      Yes.

  13. QUESTION:
    I want to start auto tags/ insurance business, but need how to start, cane someone help me?

    • ANSWER:

  14. QUESTION:
    How many nonstandard auto insurance companies are doing business in the United States?
    I am researching the nonstandard auto insurance sector and would like to understand how many carriers are underwriting policies in the United States.

    • ANSWER:
      Well, the biggest nonstandard auto carrier, would be each state's auto insurance program of last resort - that would be facility auto, assigned risk, it goes by lots of different names. If you exclude those, I can think of maybe a dozen companies off the top of my head.

      But I'm probably missing some.

      It also matters a WAY lot, if you're including only admitted carriers, or nonadmitted carriers as well - or if you're talking personal lines only, or including commercial auto lines.

  15. QUESTION:
    My business auto was totaled. Insurance paid for it.What is the proper acctg. entry for the loss of the asset?

    How do I determine if there is a gain or a loss. Insurance paid the remaining balance on the bank auto loan. I did not receive any additional money for the car.

    • ANSWER:
      If you received cash for it....

      Cash (Debit)
      Accumulated Dep. (Debit)
      Loss on Asset (if a loss) (Debit)
      Gain on Asset (if a gain) (Credit)
      Asset Account (Credit)

      If they just paid off the loan instead of cash, you Debit Loan instead of cash. To determine if it is a gain or a loss, fill in the rest of the entry first and see which side still needs an entry to balance. If the Credit side is lower, you have a gain and if the Debit side is lower you have a loss.

  16. QUESTION:
    when is it necessary for a small business to have commercial auto insurance?
    this is a small family business. no employees.
    Husband and Wife team.

    • ANSWER:
      Because you're a business and not an individual - which means that your potential liability is much greater. It's the same as your homeowners insurance - if you run your business out of your home and don't have commercial insurance and your house burns down, no part of your commercial busines will be reimbursed.

  17. QUESTION:
    What is the typical cost of auto insurance for a business in California?
    What kind of price range should I expect to insure a 15 pack van that will be used for an LLC?
    Thanks.

    • ANSWER:

  18. QUESTION:
    How does auto insurance coverage work for a small business?
    I am the only employee of my small business (a C Corp). If I lease a car through the business, rather than personally, how does insurance change? Will coverage be more expensive? What if the car is only used 50% of the time for business and 50% for pleasure? What if my wife is occasionally using the car for non-business purposes?

    • ANSWER:
      The answers will depend on the rules of the company that insures you and your driving records. Any car used for business purposes, regardless of whether it's owned by the business or not, is usually more expensive to insure, though. With the company I worked for it wouldn't matter at all if it was leased in your name or in the name of the business.

      Call your current car insurer, tell them what you're thinking of doing and they'll be able to tell you how it would affect you.

      Good luck!

      Edited to add: Sorry to disagree, Isabella, but State Farm writes these as personal policies with business use quite frequently. As such his wife would be listed as an additional driver.

  19. QUESTION:
    need help with business hw on auto insurance?
    i'm a junior in high schoo. i do not own a car and i'm suppose to find a car online and figure out my auto insurance. my teacher said i need to calculate this online, so i have to find a website. please help.

    • ANSWER:
      Go to Auto trader, or Kijiji to find the vehicle you want.
      Then you can go to Progressive or Esurance to get a quote based on the vehicle and your information. There may be other sites, but those are the ones I know of off hand.

  20. QUESTION:
    Mobile auto restoration business ? Insurance ?
    Does any one know what kind or how much insurance a mobile auto restoration business needs? It goes to dealerships and installs leather kits on there property. (the car never leaves the lot). In the future it may expand into Windshield Restoration, headlight restoration & Smell Eliminator.
    THANKS

    • ANSWER:

  21. QUESTION:
    If I were to open an auto insurance business and set my rates to make a profit, yet did not charge extra if?
    had an accident or had the wrong zip code, would I go broke?

    If your answer is no, then why do we put up with this crazy insurance fraud?

    • ANSWER:
      Yes.

      Statistically, people who have been in accidents, or who have other indicators of higher risk will file more claims for more money. So, you charge them more. You charge people who will cost you less in claims less, to attract them.

      Your hypothetical insurance company would go broke. Other companies would attract the lower-risk drivers with lower rates than it could offer, leaving it with higher risk drivers who would draw more in claims than the pay out. If it raised it's rates until it could cover those costs, it would actually be charging even the high-risk drivers /more/ than the companies that have been able to attract lower-risk drivers!

  22. QUESTION:
    How WOULD I FIND OUT THE NAMES FOR ANY AUTO INSURANCE COMPANIES THEY HAVE GONE OUT OF BUSINESS SINCE 2000?
    HI THERE, I AM WONDERING IF ANYONE KNOWS ANY AUTO INSURANCE COMPANIES THAT HAVE GONE OUT OF BUSINESS BEFORE THE YEAR 2000. THE PROBLEM IS I JUST RECENTLY RECEIVED A NOTICE IN THE MAIL THAT I CANNOT NOT RENEW MY DRIVER'S LICENSE UNTIL I PAY OF THE TWO TICKETS I GOT IN 2000. ONE IS FOR NO INSURANCE AND THE LADY THEIR TOLD ME THEY WOULD DISMISS THAT TICKET IF I CAN SHOW PROOF OF INSURANCE . I CAN'T EVEN REMEMBER IF I HAD ANY THEN. ANY ADVICE IS APPRECIATED. MANY THANKS.

    • ANSWER:
      You're best bet is to contact the Insurance Commissioners Office in your state.

      However, even if you find a company that you think you had coverage with their records are probably all destroyed unless the company was bought out by a different insurance company.

      Good Luck

  23. QUESTION:
    Does personal auto insurance not cover you if you have a business sign on your car?
    I was told that if you have an accident your car won't be covered if you are advertising your business on it. Also, what if a client or family member has one on their car, even if they don't own or work for the business?

    • ANSWER:
      Some insurance companies will not insure business signs such as pizza delivery, or other delivery vehicles, due to the high exposure and high miles. A simple business such as landscaping or appliance repair can be insured as a business or commercial class and will be covered. Check with your insurance company (without giving your name) to see about getting the correct coverage. Good luck!

  24. QUESTION:
    My auto insurance agent died. How long can the agency continue to do business in his name?
    I had an insurance agent named "Joe". He was always friendly when I came in to pay my bill. For several months I went in to make a payment and Joe was not there. I would ask about him and they would say he was off today. Finally I went in and asked about Joe and they stated that Joe died last week. I had not seen Joe in over a year. My receipt even that day had Joe's signature on it. Can they do this?

    • ANSWER:
      If someone else bought the name from his estate, they can use his name forever. You think Colonel Sanders is still alive?

  25. QUESTION:
    How much is small business insurance?
    Hi I am doing a project for school and I was wondering how much insurance is for a small business. It will be a temporary food vendor. I am looking at owner, liability, product liability, and auto insurance. I just need an estimate if you could help. Thanks!

    • ANSWER:
      The insurance for the product liability and property, is probably going to run you 00 to 00 for a cart.

      The auto insurance, could be ,000 to ,000 depending on coverages.

  26. QUESTION:
    Where can I find info on the importance of the auto industry in the advertisement business:?
    I am thinking of doing a paper on the importance of the auto industry to media advertisement. It seems that a great deal of TV and Radio ads have to do with the automobile, direct sales, auto insurance, ambulance chasing lawyers.

    PS: There must be a whole lot of money to be made in the auto insurance business.........

    • ANSWER:

  27. QUESTION:
    I have a small office cleaning business, will my customers ask for proof of my auto insurance?
    Will they need proof of auto insurance or just a certificate of insurance of general liability insurance to cover slip and fall cases etc.?

    • ANSWER:
      I can't think of a reason they would need your auto insurance. You're not using your car to clean their offices.

      However, if you don't have auto insurance, you need to get it for your own protection. You don't want to risk losing everything you've worked for in a lawsuit should you have an accident.

      The liability is to protect them from any damage you might do or cause in the course of your work. Obviously, you need to do everything in your power not to cause any damage or leave a floor covered with soapy water and cause someone to fall but they need to be protected in case something does happen.

  28. QUESTION:
    What are the names of the top 10 insurance/business companies in the united states?
    Not neccessary auto insurance but life insurance or just any big wig insurance companies out there. For instance, one of the biggest accounting firms out there is PriceWaterHouseCoopers. So what are some business and/or insurance companies out there in the United States.

    • ANSWER:
      Blue Cross - 58,000,000 Search Results
      Geico - 3,830,000 Search Results
      Progressive - Too Common of Word.
      Kaiser Permanente - 1,540,000 Search Results
      Farmers - Too Common of Word.
      State Farm - 38,400,000 Search Results
      AllState - 10,400,000 Search Results

      Blue Cross is the biggest money maker. No other insurance company makes over 180 billion a year.

  29. QUESTION:
    Why do auto insurance companies ask whether you use car for business use?
    Does it affect how much you pay for insurance?

    • ANSWER:
      They ask because you are on the road more (could be most of the day depending on what you do) and put more mileage on the car, therefore, there is more chance of an accident. You would drive you car much more than someone that just drives to work. There are also different rate classes for driving to work (pleasure up to 3 miles one way, 3 miles to 10 or 15 miles one way - depends on the state & over 10 or 15 miles one way) The more you drive even based on your commute, the more you will pay for insurance. The business use class is the highest because even the over 15 miles class maybe drives 40 miles in a day to work & back are only on the road twice a day. Also, if you say you do use the vehicle for business use the agent will ask what the business use entails. Are you just running errands for the business (going to the post office to pick up mail, going to the bank with the deposit)? Or are you delivering mail or newspapers or taking people in your vehicle (there is a difference for taking co-workers to a meeting or taking people for a fee)? Do you have signs on your vehicle? The answers to the follow up questions will determine if your vehicle can stay on your personal policy or if it has to be on a business auto policy.
      Expect to pay 25-35% more for business use over pleasure use if the vehicle is able to stay on your personal auto policy. Some companies may be more but that is the average in my area. I am not sure of the business auto rates but I have had someone move their vehicle from a personal policy to a business auto policy & the premium was actually less with higher liability limits.

  30. QUESTION:
    auto insurance~ two different jobs equals business use?
    My insurance company has informed me, that my husband uses his truck for business, He has 2 jobs, one he works at everyday & the other job every other weekend, they are not connected to one another in any way. Can anybody explain this to me? The only thing I got out of the insurance company was, it is business use, if the mileage from our house to one job, is different from our house to the other. Yes it is less.

    Thanks
    Thanks to everyone that answered, after your answers, I called back and ask questions about it & got the response, that it would be just commuting,not business,so I spoke up & told them what the person said earlier,It has been fixed...

    • ANSWER:
      That sounds like a stretch to me. If the car is actually used to just drive there, and drive back, I can't see any possible reason for calling it business, the mileage thing is pretty lame. I would ask for clarification in the legal wordings of the policies they issue. I bet they can't provide them.
      Going by their definition, a person who worked on call at WalMart, and put in shifts on the cash register at 2 stores in the same city would be using his car for business!

      Edit:
      Glad it was fixed, it sounds like the first person at the insurance company was a newbie, or somebody who spoke without checking the whole story.

  31. QUESTION:
    what do i need to start a business that offers car insurance to clients and mortgage consultans for mortgages?
    i am looking for more information on opening a business that would provide auto insurance to customers and i also will like to have mortgage consultants to do people's mortgages does anybody have experience in the 2 industries ? i'm currently in the process of researching and just doing my homework right now just looking for some tips and what to do's thanks...

    • ANSWER:

  32. QUESTION:
    If I have a small business and need to hire delivery drivers, do I need to pay auto insurance for them?
    This will be for deliveries in Georgia and South Carolina.

    • ANSWER:
      You need to hire these drivers as subcontractors. You pay them by the mile or per delivery. They furnish their own gas,insurance,etc.
      If you don't you are going to assume risk for their non-business driving habits, possible fraud on gas used,etc.
      Spell it out up front as to what you are paying for. The only other solution is for you to purchase the vehicles you need and hire them to just drive. This gives a better image as you can letter or put graphics on the vehicles for advertisement for your business. You can keep them clean and put forth a lot of advertising for your business.
      State in your hiring process that drivers must have a clean driving record for the last 2 years, and that any traffic violations will be cause for dismissal. Talk over the details with your company insurance agent.
      This cost of vehicles can be depreciated off of your taxes also - talk with your accountant. You can also drive this vehicle home after work as it is considered a company vehicle.
      Also tell drivers they must keep the inside of the vehicles clean and no passengers are allowed to ride in the vehicles including family and or relatives. Cars cannot be taken home.

  33. QUESTION:
    I get paid from the auto insurance to take care of my dad they sent me a 1099 i dont have a business do i have?
    to file as a business or can i file regular income tax.

    • ANSWER:
      If you received a 1099 Misc for services you performed you
      will need to file a Schedule C to report this income and then
      a Schedule SE to report the self-employment tax of 15.3% of
      your net earnings. The totals from these two schedules will be
      posted to your 1040, so long as you have not incorporated
      yourself.

  34. QUESTION:
    Do auto insurance rates for a business increase if and when they put the company name on the vehicle?
    I was once informed that putting the company name on a business vehicle caused insurance rates to be higher because if it was involved in an accident, people are more likely to sue. I am also curious to know if it matters if the name is painted on or if it is put on a magnetic sign that can be removed if, for instance, the vehicle is driven at time for personal use. I am wondering if this is true?
    I have neither a business nor a vehicle. The question came up in a discussion and turned into a debate between several people. We are just trying to find the answer. So we cannot just go and get a quote.

    • ANSWER:
      Signs on the vehicle have nothing to do with insurance rates; using the vehicle for business purposes will cause an increase in rates

  35. QUESTION:
    is it illegal to be required to use my own personal auto insurance if I am renting a car for company business?

    • ANSWER:
      I know of no law that makes it illegal.

      However. The car rental company will NOT rent you a car, unless you have insurance. If the car is rented in your personal name, well, they need your personal insurance. If the car is rented in the company name, then they need the company's insurance.

      The car rental company is NOT required to rent you a car without insurance. Your real bone to pick is with your employer - who should be setting you up with a Hertz account, that keeps his commercial auto policy information on file. Then he just provides you with a company credit card to pay for it. (The credit card name has to match the name on the rental agreement, which has to match the name on the insurance).

  36. QUESTION:
    New advertising slogan for insurance business?
    Can anybody please help me come up with a catchy slogan for a new auto insurance business I am starting

    • ANSWER:
      Be legal for less!

      or

      No worries...we've got you covered!

  37. QUESTION:
    ok. so i am wondering how you figure out the base premuim for auto insurance. for a business math student?
    i need to figure out how the equation for the base premium works for auto insurance. the equation is : JULIE SPIROS AGE 21 AND UNMARRIED DRIVES HER CAR TO AND FROM WORK HER DRIVER RATING FACTOR IS 1.85 HER CAR IS CLASSIFIED A-11 SHE HAS 25000 PROPERTY DAMAGE 50/100 BODILY INJURY DEDUCTIBALE COMPREHENSIVE AND DEDUCTIBLE COLLISON COVERAGES. WHAT IS HER BASE PRIMUI9M. FOR THE COMPREHENSIVE DEDUCTIBLE IT IS 81.60 AND FOR THE COLLISION DEDUCTIBLE IT IS 225.60. PLEASE HELPPP.

    • ANSWER:
      I'm thinking you're not using the word "base" correctly. "Base premium" isn't what the actual premium CHARGE is, it's the straight premium AFTER the limits factors, deductible factors, and age modifiers, BEFORE the rating and experience factors are aplied.

      Additionally, if it's a PERSONAL policy, the exact rating method will vary BY STATE, so the base premium could be different.

  38. QUESTION:
    after an auto accident is it better to tell the insurance company you are traveling for business or pleasure?
    just wondering if either of the options causes a higher insurance rate. Or is business or pleasure is considered more risky by insurers.
    oh fyi i was traveling for business and that is what i told the insurance. i was just wondering if there was any difference if i told them i was driving for personal reasons.

    • ANSWER:
      Like you've been told, always tell the truth, as people who lie have trouble keeping the story straight, which can cause any settlement to be suspect.

      I doubt that they are as concerned about whether your trip was business or pleasure as they are concerned about who and what caused the accident.

      If you were on business, and it was your car insured as a pleasure vehicle, they might be concerned as to the amount of business travel you have used the car for. If you've used a car mostly for business travel after telling them it's primarily a pleasure use vehicle, then you might have a rate increase on that basis. It would also indicate that you lied on your insurance application.

  39. QUESTION:
    Can I open this kind of Insurance Business?
    I was wondering if I would be able to offer a secondary insurance just for theft or total of a car. My sister has and resells auto insurance but my idea was to offer to modified imports. Or could offer a guarantee to pay difference from what I value the car then what their primary insurance pays? I know you need a license to sell insurance. Any input will help.

    • ANSWER:
      First, this is not something you can do on your own. It takes millions of dollars to set up an insurance company.

      Second, selling insurance that covers more than the value of the property is normally illegal. You cannot simply "value" it higher that its real value to let a person profit by letting an overinsured car get stolen or wrecked. There is a special type of insurance called "GAP" insurance that pays the difference between the value (as determined by the regular insurance) and the amount owed on the loan. The person does not receive any actual cash. They just avoid having to pay back the rest of the loan.

  40. QUESTION:
    Entering Viatical life insurance business?
    I have been selling auto insurance for the last couple of years, and want to make a career change. I have heard the viatical life insurance business is very lucrative (buying existing policies).
    How would one go about getting into this field? Is it as lucrative as I may have been told? Do you know of any specific companies in the Los Angeles area that may hire a new agent?

    • ANSWER:
      It was very lucrative about 5 years ago. Now that there are so many people in the field, it is not so lucrative. And in order to do it right, you need a good amount of resources.

  41. QUESTION:
    Online Auto Insurance Quotes, are they really safe and accurate?
    I know several people who have submitted their information into one of the many "online auto insurance quotes" and now they have solicitors all over them, on their phone, emails, junk mail and even one case of Social Security Identity theft. So my question is: Are these online auto insurance quotes really safe? Doesn't it make sense to stay with a local auto insurance agent you can do business with either on the phone or in person.

    • ANSWER:
      Hello Beth,

      In order to receive an accurate quote for auto insurance personal information such as address, date of birth, drivers license number, and social security number are required. This is exactly the information identity thieves need to destroy your financial credibility. Another concern is unwanted solicitors contacting you. It is completely unnecessary to receive an accurate quote for your car insurance by submitting this information online. It does indeed make perfect sense to make contact with an insurance agent in person or on the telephone.

      When contacting an agent in person or on the phone be sure and ask a few questions of your own, such as, how long they have been in business, and how will they safeguard your personal information. If you don't like the answers say thanks and hang up. If your reasonably confident with the person your speaking to then proceed. Another benefit of speaking with a "live" agent is your ability to ask questions and receive professional advice.

  42. QUESTION:
    Why don't we buy our health care insurance like we buy our auto insurance?
    Auto insurance companies compete for business and this keeps rates low. Why can't we buy our health care insurance the same way? You pay 0-00 a year for coverage with 0 deductible. Problem solved!

    • ANSWER:
      First of all, Obama wants to make insurance more available to all. And change the system so that it is cheaper, and also so that the insurance companies find it harder to get out of paying for treatment. The system he is proposing looks similar to that which works in Holland and Switzerland where private companies are involved in providing insurance.

      Second, of course universal health-cover sucks. That is why we in Western Europe have it. We think, hmm, our healthcare system sucks. I know, lets keep it. I guess that is the same with Japan and Canada as well.

      FACT - the USA spends more on healthcare PER PERSON than any other nation on the planet.

      FACT - the US has higher death rates for kids aged under five than western European countries with universal health coverage.

      That means that a dead American four year old would have had a better chance of life if they were born in Canada, France, Cuba, Germany, Japan etc, all of which have universal health coverage.

      So to answer the question, you can.

  43. QUESTION:
    How can I start an insurane business as an independent agent.?
    I have a P & C agent Licence. I would like to open a business that sells auto insurance policies from various insurance companies. I already have a tax business and a good clientelle. How can I start and combine the tax and Insurance business. What are the requirements apart from the capital.

    • ANSWER:
      You have to get the insurance companies to sign you up.

      You're not worth the bother unless you have a lot of business already. "Captive" insurance companies are wiling to develop an agent, because he's "locked in", and cannot sell insurance for another insurer. Independents are not.

      You need to buy yourself into the business. In some cases, you can find a large P&C agency that will sell you some customers. Maybe they have 8 companies they sell for, and they will sell you all the customers for 1 company. Or you can find an agent that wants to retire, and buy him out completely.

      Another alternative is to affiliate with an independent agent for a while. You sell P&C to his L&H customers, and sell P&C to your own customers. After a year or two, he keeps his customers and you keep yours. This can get sticky.

      As you see, there's no *good* way to get into the business except to buy out a retiring agent.

  44. QUESTION:
    I' m looking for insurance business online -life, homeowners, auto and health.Can you link me with any website

    • ANSWER:
      you may also take a look at this site. this online business offers affordable alternative to Major Medical Insurance Plans for the individual as well as the Family members.

  45. QUESTION:
    Any Creative Marketing ideas for Auto/home insurance in California?
    I've been trying lots of new ideas for marketing my insurance business. I do flyers, internet advertising and more. What made you chose your insurance agent? What sorts of things are important to you, (other than price)? What sort of promotions would you be interested in seeing?

    • ANSWER:
      Since I am no longer in the Personal Sales line of insurance I am willing to give up what was successful for me. I am lunch and learn seminars to different business on insurance. In order to gain x-dates and further interest from potential clients I held a raffle at the lunch and learn with cards asking for their current home/auto carrier and x-dates. I got more bang for my buck. I would go into a business (realestate agency/mtg broker) and ask them if I could give a free insurance seminar on a topic I thought they would find interesting. A biggy right now is Identity Theft. I would take no longer than 45 min while they were eating lunch and give my seminar then after stay for questions. It is amazing how many leads you can get in a one time seminar. The real estate agents not only gave me their business but referred clients to me. Good luck and really just have fun with it. If you are in insurance sales you are more than likely a people person so enjoy. If you like golf like I did sponsoring a hole in a golf tournaments is also allot of fun and money well worth the spend.

  46. QUESTION:
    Why are there not many big auto insurance companies operating in Massachusetts?
    I moved from NY and need to find an auto insurance company. AllState and State Farm are not doing business here. I don't want Geico or Mutual Liberty because of bad experience with them. Are the small local businesses reliable? Thank you.
    Common Sense, thank you for the reply. Are the smaller companies reliable in terms of being able to provide good service after an accident? Thanks.

    • ANSWER:
      Until a year or so ago, the auto insurance rates in Massachusetts were set by the state, and insurance companies were NOT allowed to refuse to write a policy for someone. The insurance companies were losing a ton of money in Massachusetts, and most pulled out decades ago. As of a few years ago, there were maybe SEVEN auto insurance companies writing in the state.

      So, recent regulations have "opened" the market for pricing, so that insurance companies could charge their own rates. But most carriers have no faith, that Massachusetts won't go back to the old way - making them sell insurance for way under the cost of claims - so aren't going to go back into MA any time soon.

      There are several small regional carriers in MA that do a great job - Amica, Hanover, Commerce, etc. You should probably talk to a local agent, who can give you multiple quotes at once.

  47. QUESTION:
    Ask: Online Auto Insurance Quotes, are they really safe and accurate?
    I know several people who have submitted their information into one of the many "online auto insurance quotes" and now they have solicitors all over them, on their phone, emails, junk mail and even one case of Social Security Identity theft. So my question is: Are these online auto insurance quotes really safe? Doesn't it make sense to stay with a local auto insurance agent you can do business with either on the phone or in person.

    • ANSWER:
      You will have to shop around as you do.
      Get a quote from insurers you get from yellow pages or from the web.

  48. QUESTION:
    Does anyone know of an auto insurance provider that does not require a credit check in Vancouver, WA?
    I switched from Progressive to Allstate online about a month ago. I started the policy and paid the premium. Now I get a letter from Allstate saying they are unable to carry a policy for me due to my poor credit. I'm angry and totally disagree with my credit score having anything to do with my driving ability. I refuse to do business with any company that uses a credit score to determine auto insurance rates or availability.

    • ANSWER:
      Leader Infinity will waive the credit check if you want, but then they'll give you the most expensive rates, so it's not like you'll get the same rate with a score of 550, as someone with an 800. You won't. Even if you had an 800 score, if you ask them to waive the credit check, you get the same rates as someone with a 475.

      Credit scoring isn't at ALL about your driving ability. It's all about the numbers.

      Credit scores are shown to be a more accurate predictor of future claims, both in the number of claims filed, and the dollars paid out, than even your past driving record, so because of that, every insurance company outside of California can and does use credit scoring.

      The ones that didn't, initially, had MUCH worse claims results, because they were getting the drivers with the lower scores, who had more and larger claims, without charging the additional premium for the risks.

  49. QUESTION:
    How To Become An Insurance Adjuster?
    How do you become and get into the auto insurance business? Or specifically auto insurance adjusters?

    • ANSWER:
      All the adjusters I've known, including myself, started out as a trainee at an insurance company. You have to learn how to adjust claims someplace and working as a trainee is about the best place I know of to start.

  50. QUESTION:
    What auto insurance companies are currently appointing in Florida?
    I have been a licensed 2-20 Insurance Agent for a year now. I’m currently looking for auto insurance companies that are appointing in Florida. Any names and phone numbers of these companies would be a big help.
    Here are lists of companies that I’m currently writing business with:
    Bristol West
    Progressive
    Gainsco
    Seminoles
    I need some more companies so that I am not only limited to these four. By the way I am in the SW Florida area.
    Thanks SO much for your help guys

    • ANSWER:
      You will have to shop around as you do.
      Get a quote from insurers you get from yellow pages or from the web.


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