Commercial Auto Insurance for Home Care Agencies and Providers
- Covers liability for at-fault accidents involving company vehicles
- Protects against vehicle damage from collisions, theft, or vandalism
- Required if your agency owns vehicles used for business purposes
What Is Commercial Auto Insurance for Home Care?
Commercial auto insurance is coverage for vehicles owned or leased by your home care agency and used for business purposes. It covers liability when your vehicles are involved in at-fault accidents, physical damage to your vehicles from collisions or other perils, medical payments for injuries, and uninsured/underinsured motorist coverage. If your agency owns any vehicles—cars, vans, trucks, or specialty vehicles—used to transport caregivers between clients, transport clients, or conduct business operations, you need commercial auto insurance.
For home care agencies, this coverage is critical if you own vehicles because your drivers are on the road constantly—traveling between client homes, transporting clients to appointments, running errands for clients, and conducting business throughout the community. If one of your vehicles causes an accident, you’re liable for all injuries and damages. A single serious accident can result in hundreds of thousands of dollars in medical bills, vehicle repairs, legal fees, and injury settlements. Commercial auto insurance protects your business from these potentially devastating costs.
Commercial auto insurance for home care is required by law in nearly every state if you own vehicles. Most states also require proof of insurance before you can register a commercial vehicle. Additionally, if you finance or lease vehicles, your lender or leasing company will require comprehensive and collision coverage to protect their investment. Client contracts may also require proof of commercial auto insurance if your agency transports clients or if your vehicles are used for business purposes.
Review federal safety standards on the NHTSA website
Complete Commercial Auto Coverage for Home Care Agencies
Commercial auto insurance for home care agencies provides comprehensive protection for your vehicles and business operations on the road.
Covers bodily injury and property damage you’re legally liable for when your agency vehicles cause accidents. This is the foundation of commercial auto insurance and covers damages to other people and their property when your driver is at fault.
Common Scenarios:
Examples include: Your driver runs a red light and hits another vehicle, your van rear-ends a car at a stoplight, your employee causes a multi-car accident on the highway, your driver fails to yield and causes an accident, your vehicle drifts into oncoming traffic causing a collision, or your driver makes an unsafe lane change causing an accident.
What’s Covered:
- Medical expenses for injured parties in other vehicles
- Property damage to other vehicles and property
- Lost wages for injured parties
- Pain and suffering settlements
- Legal defense costs
- Court costs and judgments up to policy limits
- Typical limits: $500K, $1M, or higher per accident
Covers damage to your own vehicles from collisions and other perils. Collision coverage pays for accident damage regardless of fault. Comprehensive coverage (also called “other than collision”) covers non-accident damage like theft, vandalism, fire, hail, and hitting animals.
Common Scenarios:
Examples include: Your vehicle is damaged in an at-fault accident (collision), your van is stolen from a parking lot (comprehensive), hail damages your vehicles (comprehensive), your car hits a deer (comprehensive), someone vandalizes your agency vehicle (comprehensive), your vehicle is damaged in a hit-and-run (collision or comprehensive depending on circumstances), or fire destroys your vehicle (comprehensive).
What’s Covered:
- Collision: Accident damage regardless of fault
- Comprehensive: Theft of entire vehicle
- Vandalism and malicious damage
- Fire and explosion damage
- Weather damage (hail, flood, wind)
- Hitting animals (deer, etc.)
- Falling objects
- Glass breakage and windshield replacement
Pays for medical expenses for you, your employees, and passengers in your vehicles who are injured in auto accidents, regardless of who’s at fault. This “no-fault” coverage provides immediate payment for medical treatment without determining liability first.
Common Scenarios:
Examples include: Your driver is injured when another vehicle hits your car, a caregiver passenger is injured in an accident caused by your driver, a client being transported is injured in a collision, your employee needs immediate medical care after an accident, or multiple passengers require emergency treatment after an accident.
What’s Covered:
- Emergency room treatment
- Ambulance services
- Hospital care and surgery
- Doctor visits and follow-up care
- Typically $5,000-$10,000 per person
- Pays regardless of fault
- Faster than waiting for liability determination
- Covers driver and all passengers
Protects you and your employees when hit by a driver who has no insurance or insufficient insurance to cover all damages. Surprisingly common—about 13% of drivers nationwide are uninsured, and many more carry only minimum liability limits that don’t cover serious injuries.
Common Scenarios:
Examples include: Hit-and-run accident where driver is never identified, at-fault driver has no insurance coverage, at-fault driver’s insurance limit is $25K but injuries total $200K, driver with minimum insurance causes serious injuries, at-fault driver’s insurance company goes bankrupt, or multiple vehicles damaged exceeding at-fault driver’s policy limits.
What’s Covered:
- Medical expenses when at-fault driver is uninsured
- Lost wages and rehabilitation costs
- Vehicle damage when hit by uninsured driver
- Pain and suffering compensation
- Coverage up to your policy limits
- Protects all authorized drivers
- Often extends to hit-and-run accidents
- Can cover gap in at-fault driver’s coverage
Special consideration for agencies that transport clients. Commercial auto policies can be endorsed to provide enhanced coverage for transporting clients, including higher liability limits, medical payment coverage for passengers, and protection for special equipment like wheelchair lifts.
Common Scenarios:
Examples include: Transporting elderly clients to medical appointments, driving clients to grocery stores or errands, wheelchair van service for mobility-impaired clients, providing transportation as part of home care services, specialized vehicle modifications for client safety, or regular scheduled transportation for day programs.
What’s Covered:
- Enhanced liability limits for passenger injuries
- Specialized coverage for wheelchair vans
- Loading/unloading assistance liability
- Medical device and equipment coverage
- Passenger medical payments coverage
- Special accommodations for modified vehicles
- Coverage for specialized safety equipment
- Transportation-specific endorsements available
Why Agencies Need Commercial Auto Insurance for Home Care
Home care agencies that own vehicles face significant auto liability exposures that make commercial auto insurance essential protection for your business.
Your Drivers Are On The Road Constantly
Home care operations require constant driving—caregivers travel between multiple client homes daily, often driving 50-100+ miles per day in varying traffic and weather conditions. More time on the road equals more accident exposure. Unlike office workers who commute once or twice daily, your drivers are navigating busy streets, highways, residential neighborhoods, and unfamiliar areas all day long. Every mile driven increases the risk of an accident, and eventually accidents will happen regardless of how careful your drivers are.
Personal Auto Policies Don’t Cover Business Use
If your agency owns vehicles and you try to insure them with personal auto insurance, you have no coverage. Personal auto policies explicitly exclude business use, and if an accident occurs while the vehicle is being used for business purposes, the insurance company will deny the claim. You’ll be personally responsible for all damages, medical bills, legal fees, and settlements—potentially hundreds of thousands of dollars. Attempting to use personal auto coverage for business vehicles is insurance fraud and leaves you completely unprotected.
It’s Required By Law and Lenders
Nearly every state requires vehicle owners to carry minimum auto liability insurance. Operating uninsured vehicles results in severe penalties: fines, license suspension, vehicle registration revocation, and potential jail time. Additionally, if you finance or lease vehicles, your lender requires comprehensive and collision coverage with them listed as loss payee. Operating without required coverage violates your loan/lease agreement and could result in vehicle repossession, loan acceleration demanding immediate full payment, and personal liability for the vehicle value.
One Serious Accident Can Bankrupt Your Agency
Auto accident costs can be staggering. A serious accident with multiple injuries can easily exceed $500,000-$1,000,000 in total damages. Medical bills for severe injuries often reach $100,000+ per person. Add lost wages, pain and suffering, rehabilitation costs, property damage, legal fees, and court costs, and you’re facing catastrophic financial exposure. Without commercial auto insurance, one serious accident could force you to liquidate business assets, deplete personal savings, and potentially declare bankruptcy. Insurance protects your business and personal finances from destruction.
You’re Liable Even When Employees Drive
Under the legal doctrine of “vicarious liability” (also called respondeat superior), you’re automatically liable for accidents caused by your employees while they’re working, even if the employee was at fault and you did nothing wrong. You can’t escape liability by saying “the driver was at fault, not me.” As the employer, you’re jointly liable for all damages. This means your business assets, bank accounts, equipment, and potentially personal assets are at risk. Commercial auto insurance protects you from this automatic liability exposure.
Transporting Clients Creates Additional Liability
If your agency transports clients as part of your services, your liability exposure increases significantly. You’re responsible not just for vehicle operation but for safe loading/unloading, proper securing of clients (including wheelchair tie-downs), appropriate assistance with mobility aids, and overall client safety during transport. Injuries to clients during transportation can result in substantial liability claims. Clients may be elderly, frail, or have mobility issues, making safe transport challenging. Commercial auto insurance with appropriate passenger coverage is essential when transporting vulnerable populations.
Real Commercial Auto Claims in Home Care
Understanding actual auto accident claims helps illustrate why commercial auto insurance is essential. Here are real scenarios from home care agencies:
Multi-Vehicle Accident on Highway
The Incident: A caregiver driving an agency van was traveling between client homes on a busy highway when she looked down at her GPS momentarily. She failed to notice traffic had stopped ahead and rear-ended the vehicle in front of her at 45 mph, causing a chain reaction involving four vehicles. Two people in the struck vehicle sustained serious injuries including fractured vertebrae and traumatic brain injury.
The Claim: $650,000 in total damages: $425,000 for medical expenses and ongoing treatment, $125,000 for lost wages and diminished earning capacity, $75,000 for pain and suffering, $25,000 for vehicle damage.
The Outcome: Commercial auto liability coverage paid the full claim amount. Legal defense costs exceeded $85,000. Without insurance, the agency would have faced business closure and the owner’s personal assets would have been at risk. The policy limit was $1 million, providing adequate protection.
Vehicle Theft and Total Loss
The Incident: An agency vehicle was parked outside a client’s home in an urban neighborhood. The driver left the keys in the ignition while quickly running inside to retrieve a forgotten item. A thief jumped in and drove off with the $35,000 agency van. The vehicle was never recovered and was declared a total loss.
The Claim: $35,000 for total vehicle replacement plus $3,500 for equipment inside (medical supplies, wheelchair lift replacement parts, GPS unit, agency laptop).
The Outcome: Comprehensive coverage paid $34,500 after a $500 deductible. The agency was able to purchase a replacement vehicle without financial hardship. Without coverage, the agency would have lost a $35,000 asset and had no vehicle for operations, severely impacting service delivery and revenue.
Client Injured During Transport
The Incident: An agency driver was transporting an 82-year-old client in a wheelchair van to a medical appointment. While making a turn, the wheelchair was not properly secured and shifted, causing the client to fall partially out of the wheelchair. The client suffered a fractured hip and required surgery.
The Claim: $225,000 in total damages: $135,000 for hip surgery, hospitalization, and rehabilitation, $45,000 for pain and suffering, $35,000 for additional ongoing care, $10,000 for medical equipment.
The Outcome: Commercial auto liability coverage covered the full settlement. Legal defense costs were $65,000. The incident highlighted the importance of proper training for wheelchair securement. Without insurance, this claim would have exceeded $290,000 including defense costs—a potentially business-ending expense.
Uninsured Motorist Hits Agency Vehicle
The Incident: An agency caregiver was driving to her first client of the day when another driver ran a red light and T-boned the agency vehicle. The at-fault driver fled the scene and was never identified. The agency vehicle sustained $18,000 in damage and the caregiver suffered whiplash and back injuries requiring $12,000 in medical treatment.
The Claim: $30,000 total: $18,000 vehicle damage, $12,000 medical expenses for employee.
The Outcome: Uninsured motorist property damage coverage paid for vehicle repairs. Medical payments coverage provided immediate payment for the employee’s treatment. Without this coverage, the agency would have been responsible for $30,000 out of pocket with no way to recover from the at-fault driver. The employee appreciated the quick medical coverage without filing a workers comp claim for this minor injury.
Commercial Auto Insurance Claims by the Numbers:
- Average auto liability claim: $50,000-$150,000
- Serious injury claims: $200,000-$1M+
- Average comprehensive claim (theft, vandalism): $8,000-$35,000
- Average collision claim: $5,000-$15,000
- Percentage of drivers that are uninsured: 13% nationally (higher in some states)
- Legal defense costs for serious claims: $50,000-$100,000+
Understanding Coverage Limits and Insurance Costs
Understanding Commercial Auto Coverage Limits
Commercial auto insurance has several different coverage limits you need to understand to ensure adequate protection.
Liability Coverage Limits:
Commercial auto liability is expressed as three numbers (e.g., 100/300/100):
- First number: Per person bodily injury limit ($100,000 = max per injured person)
- Second number: Per accident bodily injury limit ($300,000 = max for all injuries in one accident)
- Third number: Property damage limit ($100,000 = max for property damage in one accident)
Common Liability Limit Options:
- State Minimum: Varies by state, often $25,000/$50,000/$25,000 (NOT RECOMMENDED)
- 100/300/100: Minimum recommended for small agencies
- 250/500/100: Better protection for growing agencies
- 500/1,000/100: Recommended for most home care agencies
- 1,000,000 Combined Single Limit (CSL): Comprehensive protection
Physical Damage Limits:
Collision and comprehensive coverage limits equal the actual cash value of your vehicle:
- Coverage pays up to actual cash value minus deductible
- As vehicles depreciate, coverage limits decrease
- Must select collision deductible (typical: $500-$2,500)
- Must select comprehensive deductible (typical: $250-$1,000)
Medical Payments Limits:
Typical options: $5,000, $10,000, $25,000 per person
Uninsured/Underinsured Motorist Limits:
Typically match your liability limits (e.g., 250/500 or $1M CSL)
Key Features:
- Covers claims filed during the policy period
- Must maintain continuous coverage to stay protected
- Retroactive date determines coverage start
- Need tail coverage if you cancel or switch carriers
- Premiums often lower initially but increase as retroactive date extends
How Much Does Commercial Auto Insurance Cost?
Commercial auto insurance has several different coverage limits you need to understand to ensure adequate protection.
Liability Coverage Limits:
Commercial auto liability is expressed as three numbers (e.g., 100/300/100):
- First number: Per person bodily injury limit ($100,000 = max per injured person)
- Second number: Per accident bodily injury limit ($300,000 = max for all injuries in one accident)
- Third number: Property damage limit ($100,000 = max for property damage in one accident)
Common Liability Limit Options:
- State Minimum: Varies by state, often $25,000/$50,000/$25,000 (NOT RECOMMENDED)
- 100/300/100: Minimum recommended for small agencies
- 250/500/100: Better protection for growing agencies
- 500/1,000/100: Recommended for most home care agencies
- 1,000,000 Combined Single Limit (CSL): Comprehensive protection
Physical Damage Limits:
Collision and comprehensive coverage limits equal the actual cash value of your vehicle:
- Coverage pays up to actual cash value minus deductible
- As vehicles depreciate, coverage limits decrease
- Must select collision deductible (typical: $500-$2,500)
- Must select comprehensive deductible (typical: $250-$1,000)
Medical Payments Limits:
Typical options: $5,000, $10,000, $25,000 per person
Uninsured/Underinsured Motorist Limits:
Typically match your liability limits (e.g., 250/500 or $1M CSL)
Typical Workers Compensation Costs for Home Care
Commercial auto insurance costs vary based on multiple factors related to your vehicles, drivers, and operations.
Pricing Factors:
Vehicle-Related:
- Number of vehicles (more vehicles = higher premium)
- Vehicle types (vans cost more than sedans)
- Vehicle value (affects physical damage premium)
- Vehicle age (newer = higher comprehensive/collision costs)
- Annual miles driven per vehicle
- Vehicle safety features (anti-theft, airbags reduce costs)
Driver-Related:
- Number of drivers
- Driver ages and experience (younger = higher cost)
- Driving records and violations
- Accident history (at-fault accidents increase rates significantly)
- Years with commercial driving experience
Business-Related:
- Primary business use (transporting clients vs. just driving between offices)
- Geographic location (urban = higher, rural = lower)
- Coverage limits selected
- Deductibles chosen (higher deductible = lower premium)
- Claims history
Typical Cost Ranges:
Small Agency (1-3 vehicles):
- Sedans/Small cars: $1,200-$2,500 per vehicle annually
- Vans: $2,000-$4,000 per vehicle annually
- With physical damage: Add $800-$2,000 per vehicle
Medium Agency (4-10 vehicles):
- Average per vehicle: $2,500-$4,500 annually
- Fleet discounts may apply
- Total annual premium: $10,000-$45,000
Large Agency (10+ vehicles):
- Per vehicle costs decrease with fleet size
- Average: $2,000-$3,500 per vehicle
- Total annual premium: $20,000-$100,000+
Example Calculation: Small agency with 3 vehicles:
- 2 sedans @ $2,000 each = $4,000
- 1 van @ $3,500 = $3,500
- Total annual premium: $7,500
Note: These are estimates. Actual costs depend on specific factors. Get your free quote for exact pricing.
How to Reduce Your Commercial Auto Insurance Costs
Commercial auto insurance is expensive, but there are proven strategies to reduce your premiums while maintaining adequate coverage.
Cost Reduction Strategies:
1. Implement Driver Safety Program
- Formal driver training and certification
- Regular safety meetings
- Defensive driving courses
- Can reduce premiums 5-15%
2. Maintain Clean Driving Records
- Screen drivers before hiring (MVR checks)
- Establish strict driving policies
- Discipline for violations
- Monitor ongoing driving records
- Clean records = lower rates
3. Install Safety and Anti-Theft Devices
- GPS tracking systems
- Dash cameras (often 10-20% discount)
- Anti-theft systems and alarms
- Vehicle immobilizers
- Backup cameras
4. Increase Deductibles
- Raising collision deductible from $500 to $1,000 saves 10-20%
- Raising comprehensive from $250 to $500 saves 5-10%
- Only increase if you can afford out-of-pocket costs
5. Bundle Coverage
- Insure all vehicles with same carrier
- Bundle with general liability and workers comp
- Multi-policy discounts often 10-25%
6. Limit Personal Use
- Restrict vehicles to business use only
- No commuting to/from work if possible
- Business-only use reduces rates
7. Choose Vehicles Wisely
- Vehicles with high safety ratings cost less
- Avoid sports cars or luxury vehicles
- Consider purchase vs. lease (affects coverage needs)
- Fuel-efficient vehicles sometimes qualify for discounts
8. Review Coverage Annually
- Drop comprehensive/collision on older vehicles
- Adjust limits as needed
- Shop for better rates every 2-3 years
- Update vehicle values for depreciation
9. Reduce Annual Mileage
- Optimize routes between clients
- Route planning software reduces miles driven
- Lower mileage = lower rates
10. Maintain Good Claims History
- Avoid small claims if possible (pay out of pocket)
- Implement accident prevention measures
- Claims-free discounts often 10-20%
Potential Savings: Implementing multiple strategies can reduce premiums 20-40% while maintaining full coverage.
Hired and Non-Owned Auto Coverage (Important Alternative)
If your agency doesn’t own vehicles but employees use personal vehicles for work, you need hired and non-owned auto insurance instead of commercial auto.
What Is Hired and Non-Owned Auto Coverage?
- Hired Auto: Coverage when you rent or lease vehicles short-term for business
- Non-Owned Auto: Covers liability when employees use personal vehicles for work
Why You Need It:
If your caregivers drive their personal cars between client homes and an accident occurs during work, their personal auto insurance might deny the claim for business use. You’re still liable as the employer, but you have no coverage. Hired and non-owned auto fills this gap.
Cost:
Much less expensive than commercial auto: typically $300-$800 annually for small agencies. Often added as endorsement to general liability policy.
When You Need Commercial Auto vs. Hired/Non-Owned:
- You own/lease vehicles = Commercial auto required
- Employees use personal vehicles = Hired and non-owned auto
- Both situations = Both coverages needed
What Commercial Auto Insurance Doesn’t Cover
Understanding exclusions helps you avoid coverage gaps and ensures you have the complete protection your agency needs.
Employee Personal Vehicles (Unless You Have Hired/Non-Owned)
Commercial auto insurance only covers vehicles you own or lease. If your employees use their personal vehicles for work (driving between clients, running errands, transporting clients), your commercial auto policy doesn’t cover accidents they cause. You need hired and non-owned auto coverage for this exposure.
Examples of Excluded Claims:
- Employee causes accident in personal car while driving to clients
- Independent contractor causes accident during work
- Caregiver damages property while driving personal vehicle for work
- Injuries from accident in employee’s personal car during business
- Employee’s personal vehicle damaged during business use
Either require independent contractors to carry their own workers comp coverage and provide proof, or reclassify them as employees. Many states are cracking down on misclassification if someone works like an employee, they must be classified as one.
Intentional Damage or Criminal Activity
Commercial auto insurance doesn’t cover intentional vehicle damage, racing, criminal activity with the vehicle, or using the vehicle for illegal purposes. If a driver intentionally damages the vehicle or someone else’s property, or uses the vehicle in commission of a crime, there’s no coverage.
Examples of Excluded Acts:
- Driver intentionally rams another vehicle
- Racing or speed contests
- Using vehicle to commit a crime
- Driver under the influence of drugs/alcohol (may void coverage)
- Intentionally setting vehicle on fire (insurance fraud)
Implement strict driving policies, conduct background checks on drivers, monitor for substance abuse, and terminate employees who violate policies.
Injuries to Employees (Workers Compensation Territory)
Commercial auto insurance doesn’t cover injuries to your own employees who are injured in vehicle accidents during work. This is workers compensation territory. If your employee driver is injured in an accident, even if caused by another driver, workers comp covers their medical bills and lost wages, not commercial auto.
Examples of Excluded Claims:
- Your driver injured in accident during work hours
- Employee passenger injured while traveling to client
- Driver hurt when vehicle struck by another car
- Multiple employees injured in work-related accident
- Injuries from accident during business operations
Learn about Workers Compensation Insurance which covers all employee injuries including auto accidents during work. Medical payments coverage on your auto policy may supplement workers comp.
Professional Negligence or Care Errors
Commercial auto insurance covers vehicle accidents but doesn’t cover professional negligence, care errors, or malpractice. If you have an accident while transporting a client and the client claims their injuries were worsened by improper positioning in the vehicle or inadequate care during transport, that’s professional liability, not auto liability.
Examples of Excluded Claims:
- Negligent wheelchair securement leading to injury
- Failure to provide adequate assistance during loading
- Client injured due to improper care during transport
- Medical emergency during transport not properly handled
- Claims of inadequate supervision during transportation
Learn about Professional Liability Insurance to cover care-related claims even during transportation.
Personal Use of Company Vehicles
Most commercial auto policies exclude or limit coverage for personal use of company vehicles. If you allow employees to take vehicles home or use them for personal errands, you may need to pay extra for commuting coverage or personal use endorsements. Without this coverage, personal use accidents aren’t covered.
Examples of Excluded Claims:
- Accident during employee’s personal use of company vehicle
- Vehicle damaged while parked at employee’s home overnight
- Employee using vehicle for weekend errands
- Commuting to/from work in company vehicle
- Family member driving company vehicle for personal reasons
Either prohibit personal use entirely (strict business-only policy) or purchase commuting/personal use endorsements. Clearly document vehicle use policies in employee handbook.
Getting Commercial Auto Coverage for Your Home Care Business
- Step 1Inventory Your Vehicles and Determine Coverage Needs:
Start by creating a complete inventory of all vehicles your agency owns or leases and determining what coverage each vehicle needs.
Vehicle Inventory:
- Make, model, and year of each vehicle
- Vehicle identification numbers (VINs)
- Current mileage and typical annual miles driven
- Vehicle value (for physical damage coverage)
- How vehicle is used (transport clients, drive between offices, etc.)
- Who is authorized to drive each vehicle
Coverage Decisions:
Liability Coverage:
- State minimum (NOT RECOMMENDED—too low)
- $100,000/$300,000/$100,000 (bare minimum)
- $250,000/$500,000/$100,000 (better protection)
- $500,000/$1,000,000/$100,000 (recommended)
- $1,000,000 combined single limit (best protection)
Physical Damage:
- Collision: Include if vehicle is financed or worth more than deductible
- Comprehensive: Include if vehicle is financed or worth more than deductible
- Older vehicles with low value: Consider dropping physical damage
- Newer vehicles: Always include both coverages
Additional Coverages:
- Medical payments: Recommended, typically $5,000-$10,000
- Uninsured/underinsured motorist: Strongly recommended
- Rental reimbursement: Consider if you need backup vehicles
- Towing and labor: Inexpensive add-on, often worthwhile
- Step 2Gather Required Information:
Commercial auto insurance applications require detailed information about your vehicles, drivers, and business operations.
Information You’ll Need:
Business Information:
- Legal business name and address
- Federal Employer Identification Number (EIN)
- Years in business
- Business description
- Current auto insurance information
Vehicle Information (for each vehicle):
- Year, make, model
- VIN (vehicle identification number)
- Garaging address (where parked overnight)
- Annual miles driven
- Purchase price or current value
- Loan/lease information (lender name and address)
- Existing damage or modifications
- Safety features (airbags, anti-theft, etc.)
Driver Information (for each driver):
- Full name and date of birth
- Driver’s license number and state
- Years licensed
- Years of driving experience
- Motor vehicle report (MVR) or driving history
- List of violations and accidents (past 3-5 years)
- Whether driver has other insurance
Usage Information:
- Primary use of vehicles (business use)
- Who is authorized to drive
- Whether vehicles are used for client transport
- Average daily/weekly mileage
- Geographic area of operation
- Any special uses (wheelchair van, medical equipment transport)
- Step 3Screen Drivers and Obtain MVRs:
Your drivers’ records directly impact your insurance costs. Screening drivers carefully and maintaining clean driving records is critical.
Motor Vehicle Reports (MVRs):
Obtain MVRs for all drivers before adding them to your policy:
- Shows driving history, violations, and accidents
- Available from state DMV (usually $5-$15 per report)
- Required by most insurance carriers
- Should be obtained annually for all drivers
What Insurance Companies Look For:
Positive Factors:
- Clean driving record (no violations or accidents)
- Years of driving experience (3+ years)
- Mature drivers (age 25+)
- Defensive driving course completion
Negative Factors (Increase Rates or Deny Coverage):
- DUI/DWI (major impact, may make vehicle uninsurable)
- Multiple at-fault accidents (3+ years)
- Multiple moving violations
- Suspended or revoked license
- Reckless driving citations
- Excessive speeding (20+ mph over limit)
Driver Qualification Standards:
Establish minimum standards for who can drive company vehicles:
- Valid driver’s license
- Clean MVR (no major violations)
- Minimum years of driving experience
- Age requirements (many insurers prefer 21+)
- Pass background check
- Complete driver safety training
- Step 4Compare Quotes and Select Coverage:
Commercial auto insurance quotes can vary significantly between carriers. Compare multiple quotes to find the best combination of coverage and price.
What to Compare:
Premium Cost:
- Total annual premium
- Per-vehicle costs
- Payment options (annual, quarterly, monthly)
- Down payment required
Coverage and Limits:
- Liability limits offered
- Physical damage deductibles
- Medical payments limits
- Uninsured/underinsured motorist coverage
- Additional coverages included
Carrier Factors:
- Financial strength rating (A.M. Best A- or better)
- Claims handling reputation
- Customer service quality
- Availability of roadside assistance
- Online account management
- Mobile app functionality
Policy Features:
- Coverage territory (all states needed)
- Who is covered to drive
- Rental car reimbursement
- Towing and labor
- Original equipment manufacturer (OEM) parts endorsement
- Diminishing deductible for claim-free years
Special Considerations for Home Care:
- Coverage for transporting clients
- Wheelchair van modifications covered
- Medical equipment in vehicle covered
- Loading/unloading liability
- Step 5Maintain Coverage and Report Changes:
After purchasing commercial auto insurance, you have ongoing obligations to maintain coverage and report changes to your insurance carrier.
Ongoing Obligations:
Maintain Continuous Coverage:
- Never let policy lapse (illegal in most states)
- Renew at least 30 days before expiration
- Keep proof of insurance in all vehicles
- Carry insurance cards at all times
Report Changes Immediately:
Add Vehicles:
- Notify carrier within 30 days of purchase/lease
- Some policies provide automatic coverage for 30 days
- Coverage effective once reported and additional premium paid
Remove Vehicles:
- Notify when vehicles sold or taken out of service
- May receive refund for unused premium
- Cancel registration and return license plates
Add or Remove Drivers:
- Report new drivers before they operate vehicles
- Remove drivers when employment ends
- Update driver information as changes occur
Report Accidents and Claims:
- Report all accidents within 24-48 hours
- Even minor fender-benders should be reported
- Failure to report can void coverage
- Cooperate with claims investigation
Update Vehicle Usage:
- Notify if mileage increases significantly
- Report if vehicle use changes (e.g., start transporting clients)
- Update garaging addresses if vehicles relocated
Annual Review:
- Review coverage annually before renewal
- Update vehicle values (depreciation)
- Add/remove physical damage coverage as appropriate
- Shop for better rates every 2-3 years
Ready to protect your agency vehicles with commercial auto insurance? We specialize in commercial auto coverage for home care agencies and work with multiple carriers to find you the best rates and coverage.
Additional Insurance Your Home Care Agency May Need
Commercial auto insurance is essential if you own vehicles, but most home care agencies need additional coverage types for complete protection.
Hired & Non-Owned Auto Insurance
Covers injuries to clients and third parties, property damage, and personal injury claims. Essential because workers comp only covers employees—you need general liability for everyone else.
General Liability Insurance
Covers injuries and property damage not involving vehicles. Essential because commercial auto only covers vehicle accidents—you need general liability for everything else.
Workers Compensation Insurance
Required by law when you have employees. Covers medical expenses and lost wages when employees are injured in vehicle accidents during work hours.
Most home care agencies need commercial auto (or hired/non-owned auto), general liability, professional liability, and workers compensation for complete protection. Contact us for a comprehensive insurance package quote.
Commercial Auto Insurance FAQs for Home Care Agencies
If your agency owns or leases vehicles used for business, you need commercial auto insurance. If your employees use their personal vehicles for work (driving between clients, running errands, transporting clients), you need hired and non-owned auto insurance. If both situations apply, you need both coverages. You cannot use personal auto insurance for business vehicles—it won’t provide coverage and is considered insurance fraud.
We recommend liability limits of at least $500,000/$1,000,000 or a $1,000,000 combined single limit for home care agencies. State minimums ($25,000/$50,000 in many states) are dangerously inadequate—a single serious injury can easily exceed these limits. If you transport clients or have significant business assets, consider $1 million or higher limits. For physical damage, insure newer vehicles for full value with collision and comprehensive. Older vehicles with low value may not need physical damage coverage—you can self-insure by setting aside money for repairs or replacement.
Absolutely not. Personal auto insurance policies explicitly exclude business use. If you own vehicles used for business and try to insure them with personal auto insurance, you have zero coverage when accidents occur. The insurance company will deny any claim, and you’ll be personally liable for all damages, medical bills, and legal costs—potentially hundreds of thousands of dollars. Using personal auto insurance for business vehicles is insurance fraud and leaves you completely exposed. You must have commercial auto insurance for any vehicles owned by your business.
Take immediate action: (1) Ensure everyone is safe and call 911 if anyone is injured, (2) Don’t admit fault—exchange insurance information only, (3) Document the scene with photos of all vehicles, damage, and surroundings, (4) Get contact information from witnesses, (5) Call police if there are injuries, significant damage, or the other driver is uncooperative, (6) Report the accident to your insurance carrier within 24 hours (failing to report can void coverage), (7) Don’t make repairs until insurance adjuster inspects damage, (8) Document everything and keep all receipts. Quick reporting and thorough documentation help ensure smooth claims processing.
No, commercial auto insurance only covers vehicles you own or lease. If your employees use their personal vehicles to drive between client homes or transport clients, your commercial auto policy doesn’t provide coverage. You need hired and non-owned auto insurance for this situation. This is extremely important—many home care agencies mistakenly believe their commercial auto policy covers employee personal vehicles. It doesn’t. Without hired and non-owned coverage, you have no protection when employees cause accidents in personal vehicles during work.
Yes, at-fault accidents typically result in rate increases at renewal. A single minor at-fault accident might increase rates 10-25%. Multiple accidents or one serious accident can result in 30-50%+ increases. Not-at-fault accidents generally don’t affect rates, though some carriers may increase rates if you have multiple claims regardless of fault. This is why driver safety training and accident prevention are critical—keeping drivers accident-free keeps your insurance costs manageable. Some carriers offer accident forgiveness after several claim-free years.
Once a vehicle’s actual cash value drops below about $3,000-$4,000, consider dropping comprehensive and collision coverage. The annual premium for physical damage might be $800-$1,500, but the maximum payout is only the vehicle’s depreciated value minus your deductible. If the vehicle is worth $2,000 and your deductible is $1,000, the most you’d receive for a total loss is $1,000—not worth paying $1,000+ in annual premiums. Set aside the premium savings to replace the vehicle when needed. Always maintain liability coverage regardless of vehicle age—it protects against what you owe others, not your vehicle value.
If your driver’s license is suspended, revoked, or expired at the time of an accident, your insurance company will almost certainly deny coverage. You’ll be personally liable for all damages. This is why you must verify all drivers have valid licenses before allowing them to operate company vehicles, and you should regularly check (at least annually) that licenses remain valid. Some insurance carriers now verify licenses electronically and will notify you of suspensions or expirations. Operating a vehicle without a valid license is also illegal and can result in criminal charges, fines, and vehicle impoundment.
Have more questions about commercial auto insurance? Contact our specialists for personalized guidance.
Protect Your Agency Vehicles and Drivers Today
Don’t risk operating your agency vehicles without proper commercial auto insurance. A single serious accident can result in damages exceeding $500,000 and destroy your business. Protect your vehicles, your drivers, and your business with coverage designed for home care agencies.
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