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121 3rd Avenue North Suite 1

Saint Petersburg, FL 33701

(727) 287-5937

Cheap Car Insurance

(727) 287-5937

Best Prices For Car Insurance in Florida

What is the difference between commercial car insurance and personal car insurance?


Commercial car insurance covers various business uses, different vehicle types, and unusual situations that may not be covered under personal car insurance policies.

Commercial auto insurance policies are designed for vehicles that are being used to conduct some sort of business. A commercial auto insurance policy meets the unique needs of each company, in terms of which and how many vehicles will be used, and for what purposes. Personal car insurance policies are more generalized, and may also limit the number of covered drivers allowed for each vehicle.

Therefore, the coverage limits are quite a lot higher for commercial vehicles than they are for personal vehicles. This means higher premiums as well.


Is commercial car insurance tax deductible?


Yes. Commercial auto insurance is a legitimate expense incurred in the running of your business, so why should it not be tax deductible?

However, the commercially insured driver needs to know which form to file with the IRS.

For instance, a self employed individual might be able to make a tax deduction under schedule C, whereas an employee who does not receive mileage or expenses reimbursement might need to file Form 2106 for employee business expenses. Contact the IRS or a competent tax advisor and explain your particular business situation. The agent will let you know which form(s) you need to file.


What are some good insurance companies for commercial car insurance?


Most reputable car insurance companies offer some kind of commercial car insurance. Like any other driver, the business owner needs to shop around to find the lowest premium quote on commercial auto insurance.

Here are just a few major insurance carriers that deal with commercial car insurance policies. This list is by no means exhaustive:

Farmers Insurance: Farmers Insurance has typical liability limits and coverage types for commercial car insurance policies. The company also has a long list of occupation discounts. Call a Farmers agent for personalized service and tailored solutions to all your corporate challenges. For more info, visit farmers.com.

Geico: Geico is a financially strong insurer, which is backed by Berkshire Hathaway. They advertise low rates on all types of insurance in every state. Be sure to include Geico in your comparison study for commercial car insurance. For more info, visit geico.com.

Nationwide Group: Nationwide offers a written guarantee on repairs and your choice of approved repair shops with each commercial auto insurance policy, plus the usual competitive rates and discounts. For more info, visit nationwide.com.

Progressive Insurance: Progressive promises customized coverage to match your business. They cover all kinds of commercial vehicles, including a wide range of trailers. For more info, visit progressive.com.

State Farm Insurance: A State Farm agent can help you determine the deductible amounts and coverage limits on your commercial auto insurance policy. For more info, visit statefarm.com.

The Hartford Insurance:  The Hartford features a Fleet Ahead program for commercial vehicle insurers. It helps fleet owners identify and reduce risks. It may also make them eligible for a discount on commercial car insurance. For more info, visit thehartford.com.


Can a commercially insured vehicle also be used as a personal vehicle?


A driver can use a company vehicle for personal excursions, but the company vehicle has to be covered under a commercial car insurance policy.

Vehicles owned by people who drive to and from work, without using their vehicles to perform the functions of their jobs, are covered under personal car insurance policies.

In situations where a personal vehicle is insured as a commercial vehicle, and other family members are driving it for personal use, the business owner may need to get a “non owned vehicle” policy.

If you are not sure which situation applies to you, ask an auto insurance agent. Better yet, ask several insurance agents.


Can a personally insured vehicle also be used as a business vehicle?


Yes, but if another driver, such as your employee, uses a personal vehicle to make deliveries, run errands, or any other task related to your business, you may be liable for any accidents in which your drivers are at fault.

Commercial car insurance is necessary for basically any vehicle that is being used to conduct business.


What factors influence premium rates on commercial car insurance?


Many factors can have an impact on the cost of commercial car insurance premiums. Factors will vary by state, city, insurance carrier, and type of business. Here are just a few of the factors that frequently affect the premium rates on commercial auto insurance:

     •     Driving Distance: The more you drive, the greater the risk that you will be involved in a traffic accident. The equation is a simple one: Fewer miles equals lower risk equals lower commercial car insurance premiums.

     •     Driving Location: Consider your geographic area of operation. Are the crime rates relatively high? Or do you cover more rural areas? This can make a difference to your premium rates.

     •     Coverage Amounts: Of course it will cost more money to buy higher amounts of coverage. However, some businesses need higher coverage amounts, such as companies that utilize cargo vehicles.

     •     Coverage Types: How much money you spend on premium rates also depends on the types of coverage you need. Most commercial car insurance companies offer everything from basic, state-mandated minimum policies to optional coverages at a higher cost.

     •     Vehicle Type: As mentioned, some types of vehicles are more expensive to insure than others. Also, newer vehicles are more expensive to insure than older vehicles are.

     •     Vehicle Purpose: Commercial auto insurance premium rates are generally cheapest for vehicles used in construction and farming. The most expensive commercial vehicles to insure are cargo vehicles that carry loads weighing more than five tons. Passenger vehicles are somewhere in the mid range of commercial car insurance premium rates.

     •     Employee Driving Records: Employees with bad driving histories will cost you more to insure. Hire employees with clean driving records to avoid this problem.

Commercial Auto Insurance