Auto Insurance: Realtors' Essential Coverage Requirements

Real estate agents often use their personal vehicles for work-related tasks such as meeting clients, showing properties, and attending meetings. As such, they require car insurance that covers them in the event of accidents, property damage, or injuries that occur while using their vehicles for business purposes.

While personal auto insurance may cover realtors in some cases, it often does not provide sufficient coverage for when they are on the job. Therefore, realtors may need to purchase business or commercial auto insurance to ensure they are protected from liabilities associated with car accidents while working.

The cost of auto insurance for realtors varies depending on factors such as their location, driving record, vehicle type, and the coverage level they choose. On average, realtors pay around $92 per month for auto insurance, with rates for full coverage costing several hundred dollars more than a liability-only policy.

To find the best rates, realtors should shop around and compare quotes from different insurance providers, taking into account any discounts they may be eligible for, such as those for safety features in their car or for bundling multiple policies.

Realtors may need business auto insurance if they transport clients

If you're a realtor, you may need business auto insurance if you transport clients. This is because personal auto insurance policies typically won't cover a vehicle that is intended for "regular business use". The definition of "regular business use" varies depending on the policy, and many personal lines policies restrict how much you can drive your personal vehicle for work. If you drive your car for work more often than your policy allows, you'll need a business auto policy.

Business auto insurance, also called commercial auto insurance, is necessary for many different types of businesses. It covers different liabilities than personal auto insurance. For example, if you're driving a client to a location and an accident occurs, your personal auto insurance will likely not cover any injuries that occur to your client, as you were on the job. This isn't always the case, though; some personal auto insurance policies do allow coverage for this type of loss if the vehicle you are driving is a standard passenger vehicle, rather than a van or truck.

Commercial car insurance provides more coverage than a policy for a personal car. It may cover a fleet of vehicles and several named employees. It usually has higher coverage limits, or the maximum amount that the insurer will pay for damages and injuries in a claim. The limits on a commercial policy usually start at $1 million. Commercial car insurance also offers more coverage because commercial vehicles are generally used more often and see different types of usage than personal vehicles, making them more susceptible to damage and accidents. Additionally, some business vehicles, such as those used to transport clients, spend more hours on the road with people other than the vehicle owner.

If you're unsure whether you need business auto insurance or if your personal auto insurance will cover your needs, it's best to speak to an insurance agent.

Personal auto insurance may not cover injuries to clients

Personal auto insurance covers the bodily injury of the insured, their passenger, or another driver, as well as collision costs, uninsured motorist claims, theft, and property damage. However, realtors may find that their personal auto insurance does not cover injuries to clients in the event of an accident while on the job. This is because personal auto insurance policies typically do not cover vehicles intended for "regular business use".

The distinction between personal and business auto insurance is important for realtors to understand. Business auto insurance, also called commercial auto insurance, is necessary for many different types of businesses. Realtor business auto insurance covers different liabilities than personal auto insurance.

If a realtor is driving a client to a location and an accident occurs, their personal auto insurance will likely not cover any injuries that occur to the client. This is because the realtor was on-the-job and using their vehicle for business purposes. However, some personal auto insurance policies do allow coverage for this type of loss if the vehicle being driven is a standard passenger vehicle, rather than a van or truck.

It's important to note that the definition of "regular business use" can vary depending on the policy. Many personal auto insurance policies put restrictions on how much you can drive your vehicle for work. If you drive your car for work more often than your policy allows, you will need a business auto insurance policy.

The main reason a realtor may need a business auto insurance policy is that they consistently transport clients to showings. This type of use for a vehicle will typically disqualify it from a personal auto insurance policy.

To ensure that you have the appropriate coverage, it's recommended to speak to a trusted insurance agent who can advise you based on your specific circumstances. They can help you understand the limitations of your personal auto insurance policy and determine if you need additional coverage through a business auto insurance policy.

In addition to considering the type of auto insurance, realtors should also be aware of the minimum insurance requirements in their state. Most states require liability insurance, which covers injuries and property damage caused to others in an accident. However, the minimum coverage amounts may not be sufficient for all situations, and it's important to assess your own financial situation to determine if additional coverage is needed.

Business auto insurance is necessary for many businesses

Business Auto Insurance: Necessary for Many Businesses

Business auto insurance, also known as commercial vehicle coverage, is a necessary coverage for many different types of businesses. It is a type of insurance policy that helps cover vehicles used for business, including cars, trucks, and vans. Commercial auto insurance is important because it protects businesses from financial losses due to accidents, liability claims, or vehicle damage. It also minimises operational disruptions by covering repair costs, medical expenses, and legal fees to safeguard assets and business reputation.

Commercial auto insurance covers the cost of bills and expenses if a business-owned vehicle is involved in an accident. It is required for any vehicles used for work purposes in Texas. Any vehicles used for business purposes, whether they are company-owned or personal vehicles, must be covered by a commercial auto insurance policy. This is because personal auto insurance policies typically do not cover vehicles intended for "regular business use".

The biggest reason a realtor may need business auto insurance is that they consistently transport clients to showings. This type of use for a vehicle will disqualify it from a personal auto insurance policy. Business auto insurance, or commercial auto insurance, covers damage to your vehicle, injury to someone else, and damage to someone else's property. It usually offers higher coverage limits than personal policies as business vehicles require greater protection in the event of accidents.

Commercial auto insurance is similar to a personal auto insurance policy in that it can cover liabilities, collisions, comprehensive, medical payments, and uninsured and underinsured motorists. However, there are differences between the two, including eligibility, definitions, coverages, exclusions, and limitations. For example, commercial auto insurance covers the business owner and any employees with valid driver's licenses who drive company-owned vehicles for work purposes. Family members are typically not covered unless they are employees of the business or have permission from the insured to use the vehicle.

If you are unsure whether you need business auto insurance or if your personal auto insurance will cover your needs, it is best to speak to an insurance agent.

Realtors should exceed state liability minimums for auto insurance

Real estate agents who drive clients to showings on a consistent basis may need business auto insurance, also called commercial auto insurance. This is because personal auto insurance policies typically do not cover a vehicle intended for "regular business use".

While liability insurance is the main mandated coverage, realtors should consider exceeding the minimum liability insurance coverage required by their state. This is because the minimum coverage may not be enough in the event of a serious accident. For example, if you are at fault in an accident that results in multiple injuries, the medical expenses can quickly exceed the minimum liability coverage amount. In this case, you would be responsible for any amount above your coverage limits.

Therefore, realtors should consider purchasing higher liability coverage limits than their state requires. This will provide them with added protection in the event of a serious accident. Additionally, realtors with a high net worth and a lot of assets may want to consider an umbrella policy for more protection. This can provide additional liability coverage for both their car and home.

To determine how much auto insurance coverage they need, realtors should assess their specific situation and consider their net worth. They should also speak to a trusted insurance agent to ensure they have the appropriate coverage for their needs.

Commercial auto insurance offers high liability coverage

Commercial auto insurance is a necessity for businesses that use vehicles for their operations. This includes companies that own or lease cars, trucks, vans, or other vehicles to transport goods, equipment, or people. It is important to note that personal auto insurance policies typically do not cover vehicles used for business purposes. As such, realtors who transport clients to showings on a consistent basis will likely need a separate business auto insurance policy.

Commercial auto insurance offers liability and physical damage protection for vehicles used for business. It typically includes liability protection for other people and property, as well as coverages for the policyholder, their passengers, and their vehicle. The primary coverages are similar to those of personal auto insurance but offer higher limit options. Liability protection covers injuries or damage to other people or property if the policyholder is at fault for an accident. The policyholder can choose a split or combined limit to determine the maximum amount their policy will pay out. Split limits separate injury and property damage coverages into individual amounts, while a combined limit is a total maximum payment for all damages.

In addition to liability protection, commercial auto insurance can also include driver and vehicle protections. Driver protections, like medical payments and uninsured motorist coverages, can help pay for medical expenses if the policyholder or a passenger are injured. Vehicle protections, like comprehensive and collision coverages, cover damages to the insured vehicles caused by accidents and other mishaps. Comprehensive coverage protects vehicles from non-collision events such as fire, theft, vandalism, glass damage, and hitting an animal. Collision coverage pays to repair or replace a vehicle if it collides with another object, overturns, or rolls.

There are also additional coverages available depending on the business's risks and contractual requirements. For example, hired auto insurance includes vehicles leased, hired, rented, or borrowed in connection to the business. Non-owned auto insurance extends liability coverage to employees who occasionally use their personal autos for work. Roadside assistance covers up to one hour of on-scene labor if the commercial vehicle breaks down and provides towing to the nearest repair facility, locksmith services, flat tire changes, fuel or fluid delivery, and battery jump-starts.

The cost of commercial auto insurance varies depending on factors such as profession, coverage needs, vehicles, location, and risk level. In 2023, the national median monthly cost for commercial auto insurance through Progressive ranged from $207 for contractors to $211 for business auto customers. The average monthly cost was $257 and $270, respectively. Most customers find their monthly premium to be closer to the median price.

Frequently asked questions