Business Auto Insurance: 9 Things You Must Know Before You Buy

I’ve worked with business owners for years. One thing that always comes up is confusion around business auto insurance. Many think personal auto insurance is enough. It's not. If your business owns vehicles or your employees use their own cars for work, you need a separate commercial policy.

Let me walk you through what I’ve learned helping hundreds of businesses just like yours.

What Is Business Auto Insurance?

Business auto insurance protects vehicles used for work. It covers things like accidents, injuries, damage to property, and even theft.

You need it if:

• Your business owns one or more vehicles.
  
• Employees drive for work tasks.
  
• You transport goods, tools, or clients.
  

Personal auto insurance does not cover business use. That’s a big mistake I see often. Once an accident happens, it’s too late. The personal insurer usually denies the claim, and the business ends up paying out of pocket.

What Does Business Auto Insurance Cover?

Here's what a standard policy usually includes:

• Liability Coverage: Pays for damages or injuries you cause to others.
  
• Collision Coverage: Pays for damage to your own vehicle from an accident.
  
• Comprehensive Coverage: Covers theft, vandalism, or weather damage.
  
• Uninsured/Underinsured Motorist Coverage: Protects you if the other driver has little or no insurance.
  
• Medical Payments: Helps pay medical bills for drivers and passengers.
  

At CLEAR Insurance, we customize these based on what your business actually needs.

Why It’s Different from Personal Auto Insurance

Business vehicles face higher risks. More driving. More liability. Heavier loads. Different drivers.

Here are key differences:

• Higher limits on business auto policies.
  
• Broader usage coverage (deliveries, transporting equipment, etc.).
  
• Coverage for multiple drivers listed on the policy.
  
• Fleet insurance options if you own many vehicles.
  

Common Mistakes Business Owners Make

I’ve seen the same mistakes repeated over the years:

1. Using personal auto insurance for business use.
   
2. Not listing all drivers on the policy.
   
3. Forgetting to update coverage when buying new vehicles.
   
4. Skipping uninsured motorist coverage.
   
5. Not telling the insurer about wraps or business branding on vehicles.
   

Each of these can lead to a denied claim. That means you're on the hook for the damages.

Who Needs Business Auto Insurance?

It’s not just for trucking companies. Here’s who needs it:

• Contractors and construction companies
  
• Landscapers
  
• Delivery services
  
• Real estate agents
  
• Mobile services (cleaners, repair techs)
  
• Sales teams using company cars
  
• Anyone who uses a vehicle to run errands for work
  

Even if you only drive a few miles a day for business, that’s enough to require commercial coverage.

Local Businesses in Utah – This is for You

At CLEAR Insurance, we’re based in Bountiful, Utah, and serve businesses across Davis County, Salt Lake City, Weber County, and nearby areas.

I know the local laws. I know the roads. I understand what local businesses face. That means I can help you find the exact protection your business vehicles need—nothing more, nothing less.

What Impacts the Cost of Business Auto Insurance?

Several things affect your rate:

• Type of vehicle (vans, trucks, cars)
• How many vehicles you insure
• Driving history of your employees
• Vehicle usage (how far and what you carry)
• Where you operate (urban or rural areas)
• Limits and deductibles

The good news? There are ways to save. Bundling with other policies (like general liability), choosing safe vehicles, and training drivers well can all lower your premium.

What If My Employees Use Their Own Cars?

This is common. It's called "non-owned auto" use. If your team uses their personal car for deliveries, errands, or client visits, your business could still be liable.

You can add Hired and Non-Owned Auto Coverage (HNOA) to your policy. This protects your business if the employee gets into an accident.

How Claims Work

I always tell my clients: The best time to prepare for a claim is before it happens.

If there’s an accident:

1. Make sure everyone is safe.
2. Call the police.
3. Take photos and collect witness info.
4. Report the claim to your insurance provider immediately.

CLEAR Insurance has a simple process. You call us. We handle the paperwork. We talk to the insurer. You focus on running your business.

What Documents You Need to Get a Quote

When you contact us, we’ll ask for:

• Business name and address
• Type of business
• Vehicle info (make, model, VIN)
• Driver info (license numbers and history)
• How the vehicles are used

That’s it. We do the rest.

Can I Insure My Whole Fleet?

Yes. If you have several vehicles, you can use a fleet policy. This helps lower your costs and simplifies the paperwork.

Instead of managing multiple policies, you manage one. That’s easier for your office and your wallet.

Real Example From a Local Client

One of our clients owns a plumbing business in Bountiful. He had three work vans and thought his personal auto insurance would cover them. One of his techs rear-ended another car.

The claim was denied. The other driver sued.

That’s when he came to us. We helped him get the right business auto policy. Now he’s fully covered. He even added tools and equipment coverage for the gear in his vans.

Final Advice: Don’t Wait

Many business owners wait until it’s too late. I’ve seen companies lose thousands of dollars or even go out of business after one accident.

Insurance is not about fear. It’s about preparation. And peace of mind.

If you run a business and use vehicles, let's make sure you're protected.

At CLEAR Insurance, we offer personalized, local service for Utah businesses. We take the time to understand your company and recommend only what you need—nothing extra.

Give us a call at 801-292-5327, email service@clearinsurance.net, or stop by our office at 110 North Main, Bountiful, UT.

We’ll review your current policy or help you build a new one from scratch. Simple, clear, and local. That’s how we do it.

FAQs

What is the difference between business and personal auto insurance?

Business auto covers work-related use. Personal auto does not cover business driving.

Do I need business auto if I only use my car for errands?

Yes. If the errands are for work, your personal policy may not cover you.

Can I insure multiple work vehicles under one policy?

Yes. You can get a fleet policy for easier management and better rates.

Will my rates go up if I file a business auto claim?

Possibly. Just like personal insurance, claims can impact your rate.