Car Insurance Car insurance for a home-based business View Carriers Please enter valid zip Compare top carriers in your area Written by Insure.com | Posted on: April 7, 2010 Why you can trust Insure.com Quality Verified At Insure.com, we are committed to providing the timely, accurate and expert information consumers need to make smart insurance decisions. All our content is written and reviewed by industry professionals and insurance experts. Our team carefully vets our rate data to ensure we only provide reliable and up-to-date insurance pricing. We follow the highest editorial standards. Our content is based solely on objective research and data gathering. We maintain strict editorial independence to ensure unbiased coverage of the insurance industry. Not all business owners need to buy commercial car insurance coverage. In most cases, if you use your vehicle to deliver goods, services or to transport equipment from job to job, you need only a personal auto policy. For example, an Avon sales representative who uses her car to deliver products once a week may only need a personal insurance policy.But if you own a home-based business that requires you to provide frequent transportation to employees or clients, a personal insurance policy will not be adequate. An operator of a home-based livery service, for instance, will need a commercial auto policy. It will cover his or her business assets in the event of an accident.If you have an employee, your commercial auto policy will cover him or her. However, if your employee is injured in an accident, he or she will not be covered by your auto policy — this would be covered by workers compensation. Also, if you want your husband or wife to be able run errands with your business vehicle, your commercial auto policy will cover him or her. In addition, your commercial policy will cover you and other drivers or family members if you use your vehicle to go on vacation.Auto insurance costsYour auto insurance quote for your home-based business policy is calculated much like your regular car insurance. Insurance companies look at the number of miles you drive, who will be driving the vehicle and your driving record and claims history. Other major factors include your liability limits and comprehensive and collision deductibles. The higher your coverage limits, the more your premium. Lower-amount deductibles will cost more as well.However, make certain that your liability limits are enough to cover both your personal and business assets. If you cause an accident, the injured parties can sue you as an individual and as a business owner. The level of your liability limits will depend on the size and nature of your business.Loretta Worters, spokesperson for the Insurance Information Institute, recommends that a small home-based business have minimum commercial car insurance liability limits of $250,000 for bodily injury coverage for one person, $500,000 for bodily injury for all persons and $100,000 for property damage coverage. But if the company is larger, these liability limits may be woefully low.Pete Moraga, spokesperson for the Insurance Information Network of California, says that businesses are often targets for lawsuits because of the “deep pocket syndrome” that plaintiff attorneys follow. Also, commercial policies may cover transportation operations that handle very expensive or dangerous cargo, he adds.Insure what you haulMany home-based businesses need to shuttle equipment from job to job, like power washers and ladders for house painters, or lawn mowers and other gardening equipment for landscapers. If you own a home-based business, you may already have property and liability coverage under a business owners policy, or BOP.Keep in mind, though, that if you permanently attach a piece of equipment — like a generator — to your vehicle, that generator won’t be covered under your BOP. You’ll have to increase your insurance on the vehicle itself in order to cover items that are permanently attached. In case you missed it Best Car Insurance Companies of 2024 Car insurance rates by state in 2024 What is full coverage car insurance? How much does car insurance cost for seniors in 2024? A complete guide to adding a teenager to your car insurance policy in 2024 What to do after a car accident that’s not your fault Total warfare: What to do when your auto insurer totals your car Car insurance claims: Who gets the claims check? 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