Best Commercial Car Insurance for Drivers Under 21 in 2024

When you have a business that uses cars or trucks on a regular basis, a commercial auto insurance policy is a necessity to make sure that you are covered for any liability from an accident or other damage. This is in addition to whatever business owner’s liability policy that you may already have.

It is a good idea to make sure that every employee who operates a vehicle for your business is listed on the policy. If you have employees who are under the age of 21, they could be more expensive to insure because they do not have an established driving record.

You may also want to increase the total limits of your commercial auto insurance policy to account for the extra risk they add to your overall operations.

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The Need to Get a Commercial Auto Insurance Policy

If you operate a business that relies on your employees driving cars or trucks to do their job, then you will need a commercial auto insurance policy.

Do not be fooled into thinking you are covered because you already have a business owner’s liability policy. This policy will not cover you for any damage caused by an employee driving one of your vehicles.

The benefit of having a commercial auto insurance policy is that you will have peace of mind that you have coverage for all employees driving your vehicles.

Do you need auto insurance coverage even if your company doesn’t own any vehicles?

Even if your business does not necessarily have any vehicles registered in its name, you may still need coverage because your employees may be driving their own cars for business purposes during the workday.

In this scenario, you could add a non-owned auto liability endorsement to the existing policy for employees who own their own vehicles. This provides coverage for those employees in case they get into an accident while driving their own car for an errand or some other type of company function.

If you have an employee who is under the age of 21, this is a very important consideration for your existing commercial auto insurance policy.

Drivers under the age of 21 are more likely to get into an accident and cause serious damage to other drivers and their vehicles than older, more experienced drivers.

This means that if you have an employee who is under the age of 21 who is frequently driving while on company time, then there is a greater risk that you could have a claim filed against your business if that employee injures someone or their property.

By adding the non-owned auto liability endorsement to the existing commercial auto insurance policy, your business will have coverage if the injured party tries to recover in excess of the policy limits of your employee.

Younger drivers may not have very high policy limits, so the non-owned auto liability endorsement to the existing policy could end up saving you a lot of money in court costs down the line.

What type of coverage can you get with a business vehicle insurance policy?

A business vehicle insurance policy provides many of the same auto coverage options that you are probably used to from your personal auto insurance policy.

As a business owner, even if you have a personal auto liability policy, this will not be sufficient to take care of the business vehicle insurance needs of your company.

If you want insurance coverage for physical damage to your company’s own vehicles, then you can add collision coverage, comprehensive coverage or specified perils coverage to your business auto insurance policy. Collision insurance pays for damages that occurred in an accident and comprehensive insurance pays for incidents involving theft, inclement weather, etc.

All of these policies cover you for damage to your company’s vehicles, even if the accident was caused by one of your employees.

Specified perils coverage may be cheaper for you than comprehensive coverage, but it only provides coverage in the event of very specific incidents.

If you have a large fleet of new vehicles, then you are probably safer going with the comprehensive coverage because it is broader and will protect the value of your vehicles in more circumstances.

How can you get the lowest premium on your business vehicle insurance policy?

One of the best ways to make sure that you do not pay a higher premium than you have to for company car insurance is to take steps to reduce the risk of your drivers getting involved in accidents.

This includes frequently reviewing driver safety information and enforcing a strong company policy of safe driving on the road.

If you have younger employees who will be driving your vehicles, it is even more important that you enforce strict safe driving policies.

You should make sure to impress upon employees that a condition of their continued employment is that they follow all safety protocol when operating a vehicle on company business.

As a business owner, you may even be held liable for failing to make sure that your employees will be responsible drivers on the road.

This means that you have a duty as an employer to check the driving record of the employee that you are allowing to drive company vehicles.

If part of your daily business operations involves employees driving company vehicles, then you should make sure that all employees have full driving privileges and do not have a history of poor driving. If a prospective employee does not have a clean driving record, think carefully about the potential risk of hiring that person.

Failure to do so could result in serious liability for your business if an employee injures another person while driving on the job. This is why many employers require background checks on job applicants before they are hired for the job.

If you take these steps to make sure that you are only putting safe drivers for your company on the road, then your risk of accidents will greatly decrease. This will eventually be reflected in the reasonable premium that you will pay for your business vehicle insurance policy.

Making Sure that You are Paying the Lowest Rate for Your Business Vehicle Insurance Policy

The most straightforward way to make sure that you are not paying more than you have to for your business vehicle insurance policy is to get several quotes before you sign up for a policy.

If you already have a business vehicle insurance policy, then you may want to quickly compare different rates online from business vehicle insurance providers so that you can change companies if you find out that you are paying too much.

Considering that it is fast and easy to compare rates online, you can end up saving yourself a significant amount of money on insurance premiums without investing too much time searching for a variety of insurance rates on your end.

After you get a list of different rates by using a free online search tool, you can speak to agents or representatives from the business vehicle insurance companies that you are interested in so that you can give them more specifics for your company’s situation.

You may find out that you are eligible for certain discounts to get an even lower rate. Often there are discounts for drivers who take defensive driving courses, and many auto insurance companies offer student discounts. Ask your insurance provider if there are any additional discounts you might be entitled to.

You should ask any questions that you may have about your coverage at this point so that you can be certain that you are getting all of the coverage that you need without overpaying for it.

What’s the bottom line on company car insurance for drivers under 21?

If you need to maintain a commercial auto insurance policy for your business, it is important to make sure that all employees who will be operating any vehicles for your business are listed and covered.

If you have an employee who is under the age of 21 and will be driving company vehicles, then you need to make sure that the employee is added to the policy, which could increase the premium because younger people are inexperienced drivers, and therefore considered to be much more likely to be involved in an auto accident. Insurance for teen drivers comes with especially high monthly payments because of the increased likelihood that the policyholder will have to file claims.

Read more: Does my teenager have to have insurance to drive my car?

In the event that your company does not have any vehicles registered in its name, then you can add a non-owned auto liability endorsement to the existing policy. This means that the company would have coverage for any employee who is driving his or her own vehicle while performing company tasks.

To find the right auto insurance company for your needs, compare quotes from multiple providers.