Multi-state commercial auto insurance

Any small business that owns a car, a fleet of trucks, or other types of road vehicles is required by almost every state to have a commercial auto insurance policy. While there’s no specific policy for multi-state car insurance, if your company-owned vehicles cross state lines to deliver goods, transport people, or visit customers, your auto policy will also apply.

This type of insurance covers accident-related costs, including:

• Legal bills
• Bodily injuries
• Medical expenses
• Property damage
• Accidents involving uninsured motorists
• Physical damage and collisions

While commercial auto insurance will cover business trips across state lines, if you’re spending a significant amount of time in a new state, renting vehicles, or transporting certain goods across state lines, you may need additional multi-state coverage.

If you commute to an office in a different state from where you live, your personal policy should cover you. However, if you keep a work truck at the office, then you’d need two separate policies.

If you live in Michigan and spend the winters in Texas, and you use one car between both homes, you’re subject to the snowbird exception. This means you only need one policy, as your insurance company will recognize your secondary home as a temporary residence.

However, if you’re a homeowner in two different states and you keep a motor vehicle at both places, each vehicle will need its own policy.

For small business owners who have company-owned vehicles and their own car, it’s standard to be listed on multiple car insurance policies. For example, if you commute to the office in your own car and have a fleet of trucks at your office, you’d be on your personal insurance, and you’d also be listed on your commercial policy as the owner or as an additional insured.

Additional insured endorsements extend commercial auto insurance policies to third parties, such as business partners, employees, or vendors. This would provide coverage for the business and the additional insured for business-related incident costs.

In most states, your auto insurance must be purchased in the same state as your license plate, which is typically where you live. This means it’s against the law to buy car insurance and register your car in two different states, and attempting to do so could be seen as insurance fraud.

There are a few exceptions to this rule, including if you:

• Split your time between two states
• Are temporarily relocating for a work assignment
• Are going to college in a new state
• Are a member of the military

While most states won’t allow you to register your car in a state other than your primary residence, there are a handful of states that do, under certain conditions. This can include temporarily relocating for work, being in the military, or owning a residence in two states.

These are the states that allow you to register a vehicle with an out-of-state driver’s license:

If your company’s cars or employees regularly cross state lines for business purposes, your out-of-state auto policy must meet the insurance requirements of every state on your route. For example, if your company delivers goods to other states, it’s federally mandated that you have liability coverage.

Typically, out-of-state car insurance is for:

• Trucking companies
• Livery services
• Transportation companies
• Delivery services
• Any type of business with employees that travel frequently to other states for business

Any company that transports goods should also consider motor truck cargo (MTC) insurance, which covers your cargo during loading, unloading, and while in transit. If a shipment is stolen, damaged, or destroyed, this policy would help cover the losses.

If your employees use your company’s trucks for non-work activities, such as picking up lunch or driving home from a truck stop, you’ll need to purchase non-trucking liability (NTL) insurance. This policy covers a driver’s liabilities when using a work truck for personal reasons.

Find affordable multi-state auto insurance from top-rated U.S. companies by completing Insureon’s easy online application today. You can also consult with an insurance agent to ask about other insurance products, such as workers' compensation insurance.

Once you find the right types of insurance for your small business, you can begin coverage and receive your certificate of insurance (COI) in less than 24 hours, giving you instant peace of mind.