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Do I need to insure my car for business use?

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Carys Frampton

28 April 2017 | Updated 10 November 2023 | 3 minute read

Could you be driving uninsured without realising? Well, if you use your car for business, but haven’t declared it to your insurer you could be

Business car insurance explained: do i need business car insurance.

When you insure your car, you must tell your insurer what you’ll be using it for. For example, will it be for basic social and every day driving, or do you need business car insurance ?

The problem is, many people aren’t sure what counts as business use, as Linda Wells, head of Underwriting at Admiral explained:

“You need to know the type of use you’ll need for your car, something a lot of people can get confused about as they may not think business use applies to them.

“However, if you drive to multiple locations during your working day or attend meetings in different offices, then you may need to include business use.”

What does business car insurance cover?

Here are the basic classes for Admiral:

• Social, domestic and pleasure: This covers normal day-to-day driving – such as shopping, visiting friends and going on day trips , but it doesn’t include commuting
• Commuting: If you commute you’ll be regularly driving at peak times which carries a greater risk. This covers you to drive to and from one place of work, in addition to the cover offered by social, domestic and pleasure. 
• Policyholder only
• All drivers – that is, the policyholder and any named drivers
• Carriage of goods for hire and reward : This covers anyone who’s on the road a lot working as a courier or delivery driver, with increased mileage and a lot of stopping and starting.

Adding business use could affect your premium as you’ll be driving more miles on busier and potentially unfamiliar roads. Get in touch with your insurer to see how it can impact you and what savings you might make. Either way, it pays to tell the truth. If you don’t it could affect your policy.

Getting the best deal

It pays, therefore, to make sure you have the right type of policy to match your needs – insurance can be costly so making sure everything on your is accurate is so important.

Your employer might reimburse you for your travel expenses. This might cover both the additional insurance and your fuel. Others provide insurance which covers their employees for any accidents which occur while driving their own car. If so, you might not need business use insurance at all, but it’s always best to check.

You can take measures to bring the costs down, such as using a car with a smaller engine size or installing security devices. You could also agree a mileage limit which could keep costs down, but if you exceed that limit you’ll be uninsured.

Alternatively, you could take out a MultiCover Insurance policy and cover your cars and home on one policy and get a MultiCover discount for both.

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Do You Need a Car Insurance Policy for Business Use?

If you use a car for business, you need to have commercial car insurance. Commercial car insurance covers you and your employees for business activities, including accidents during commutes, meetings or goods delivery.

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Updated: August 30, 2023

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On This Page:

• Business Vehicle Insurance Defined
• What It Covers
• How Much Do You Need?
• Do You Need It?
• Choosing Business Vehicle Insurance

About Mark Fitzpatrick

Mark Fitzpatrick has analyzed the property and casualty insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. Currently, he leads P&C insurance content production at MoneyGeek. Fitzpatrick has been quoted in several insurance-related publications, including CNBC , NBC News and Mashable .

Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.

Do You Need Car Insurance for Business Use?

Affiliate Disclosure: Automoblog and its partners may earn a commission if you purchase a plan from the car insurance providers outlined here. These commissions come to us at no additional cost to you. Our research team has carefully vetted dozens of car insurance providers. See our Privacy Policy to learn more.  

If you plan to use your car for business, you’ll need commercial car insurance.

Whether you drive for a delivery business or use a company car, there are many cases in which you may need car insurance for business use. Your personal auto insurance does not cover vehicles used for business purposes, so you’ll need to purchase commercial car insurance to make sure you’re covered while on the job. 

Our experts have researched and reviewed all major insurance providers with the goal of identifying the best car insurance companies in the industry. We’ll also cover everything you need to know about commercial coverage as well as the top insurers we recommend.

Does Personal Car Insurance Cover a Business Car?

The short answer is no. Your private car insurance will not cover damages or accidents that occur while using a car for business use – whether it’s your personal vehicle or a company car.

So, if you choose to carry business supplies or conduct deliveries in your private vehicle, your personal insurance company will reject your claim should there be an accident. Similarly, damage that occurs while performing business duties in a company vehicle without commercial coverage will also not be covered. You’ll need commercial car insurance in these cases.

What is Commercial Car Insurance?

Commercial car insurance is coverage designed specifically for vehicles used for business purposes. These policies protect the owners from major financial liabilities, including coverage for medical expenses and property damage, that wouldn’t be covered under a personal auto insurance policy. 

Types of Commercial Coverage

Although personal and commercial auto insurance policies offer coverage for different situations, the standard types of coverage are similar for both. Standard commercial coverages include:

• Bodily injury liability insurance : Covers other parties’ medical bills in a collision you’re found at fault for.
• Property damage liability insurance : Covers the cost of damage to other people’s vehicles and property as a result of a collision you’re found at fault for.
• Collision insurance : Covers damage to your vehicle from a collision with another car or inanimate object, regardless of who’s at fault.
• Comprehensive insurance : Covers damage to your vehicle from non-collision events, such as theft, vandalism or acts of nature.
• Medical payments (MedPay)/ personal injury protection (PIP) : Covers the cost of medical expenses for you and passengers after an accident.
• Underinsured/uninsured motorist coverage : Covers damage to your vehicle and injuries to you and your passengers if you’re hit by a driver who lacks sufficient coverage.

On top of standard coverages, many commercial vehicle insurance companies offer additional coverage options that are tailored to your business needs. These add-on coverages can help you create a business auto insurance policy that works for your specific type of business for greater protection.

How Much Commercial Car Insurance Coverage is Required?

Almost all U.S. states mandate insurance for commercial cars, except New Hampshire. Minimum requirements vary by state but usually include some combination of bodily injury and property damage liability coverage. Some states also require medical coverage or underinsured/uninsured motorist coverage.

Like insurance for private cars, businesses aren’t required to purchase comprehensive or collision insurance for their vehicles. However, having a full-coverage auto insurance policy that includes comprehensive and collision coverage in addition to the required liability coverage offers the financial protection businesses need for most situations.

Types of Vehicles Eligible for Commercial Insurance

Commercial auto insurance covers a wide range of small and large vehicles used in your business, including delivery trucks, company cars, standard work vans and more. It also offers coverage for personal vehicles used for business purposes, such as if you drive your car for Instacart, Uber Eats or another type of food delivery service.

Our Recommendations for Business Car Insurance

As you can imagine, finding the right coverage can be a daunting task. When searching for commercial auto coverage, it’s best to compare auto insurance quotes from multiple reputable providers. We recommend looking into top providers such as GEICO, USAA and Progressive.

GEICO: Most Discount Options

GEICO’s insurance plans are worth considering for both personal and commercial vehicles. In our review of the best insurance companies, GEICO received a high overall rating of 4.4 out of 5.0 for its great customer service, many coverage options and affordable policies, making it one of the ideal choices for commercial auto insurance.

GEICO auto insurance coverage is available in all 50 U.S. states, and its personal policies and business coverage plans are both known for being affordable. Its wide range of discounts help bring prices down even further. You can get up to 25% off for insuring multiple cars, while military personnel and families get a 15% discount. The provider rewards good behavior, and users can save on premiums for safe driving, wearing seat belts, driving new vehicles and more.

USAA: Best for Military

Popular with military families, USAA is a trusted name in the auto insurance industry for both personal and commercial coverage. Although its car insurance policies are only available to military members and their families, it’s a great choice for those who qualify. It received an overall rating of 4.5 out of 5.0 from our team, ranking it second in our list of the best car insurance companies. 

The company has an exceptional customer satisfaction reputation. It receives high scores in several J.D. Power customer satisfaction studies and is known for resolving claims efficiently. Customers will also welcome the numerous discounts on offer at USAA, including those for military personnel and their families.

Progressive: Best for Accident-Prone Drivers

Commercial car insurance from Progressive is available in all 50 states and covers a wide range of commercial vehicles. Whether you’re looking to cover a standard vehicle used for business purposes or an industrial truck, Progressive offers the coverage you need at affordable rates. 

Progressive is often among the cheapest car insurance providers in the country. The company offers several opportunities to save money on your business policy as well, which helps to make coverage even more affordable.

Frequently Asked Questions

Does car insurance cost more for business use.

You will normally spend more on car insurance for business use than you would on a personal auto policy. This is due to the fact that business policies typically cover multiple individuals as well as the higher risk that comes with insuring commercial vehicles. As a result, businesses end up paying more on insurance premiums than individuals.

What is covered under a commercial auto policy?

A commercial auto policy typically includes a combination of bodily injury and property damage liability coverage, medical expenses coverage and sometimes underinsured/uninsured motorist coverage. You may opt to protect your business vehicles further with a full-coverage policy that includes collision and comprehensive coverage.

Does being self-employed affect car insurance?

Being self-employed doesn’t automatically mean your car insurance rates will go up. The premiums you pay will depend on a number of factors, such as what the car is used for, how often the vehicle is used and so on.   So, if you’re self-employed and running a business that requires the frequent use of your car, the annual premiums will go up. On the other hand, if you work from home and don’t use the car as much, the premiums may stay the same or even decrease.

What is the difference between business and commercial auto insurance?

When shopping for an auto insurance policy for your business, you may also encounter the term “business auto insurance.” This is the same as commercial auto insurance, and both terms are used to define insurance coverage for your business vehicles.

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Table of Contents

What is business travel insurance?

Why should business travelers get a business travel insurance policy, does travel insurance cover business trips, what is business travel accident insurance, do credit cards offer business travel insurance, business travel insurance, recapped.

Imagine the following scenarios. You’re meeting potential clients in their city in the morning, but your checked back, including your suit, didn’t make it. You’re giving a presentation, but some equipment has been stolen out of the hotel conference room. You got food poisoning from a restaurant where you had a business lunch and now require medical attention.

When going on the road for business, the last thing you want is to worry about these types of situations.

Business travel insurance provides coverage for the trips you take as part of your business or for a company that employs you. Knowing that some things don’t always go as planned during travel, you might find yourself benefitting from a business travel insurance policy.

Just like personal trip insurance , business travel insurance covers the unexpected during a business trip. A business travel insurance policy can help get reimbursements for travel expenses caused by trip delay and interruption , baggage delay, business equipment theft, emergency medical care, emergency medical evacuation and collision damage insurance for a rental car.

Depending on how often you travel, it's possible to get an annual insurance plan that will cover multiple trips or insure select travel on a trip-by-trip basis. An annual travel insurance plan is more cost-effective, but it might have lower limits than a single-trip policy.

The short answer is because you can never predict anything. The long answer is that it’s good for the following:

Reducing out-of-pocket expenses: One thing gone wrong, and you’re on the hook for unforeseen travel expenses. For example, medical evacuation can cost tens of thousands of dollars, so it’s important to keep those potential financial losses at bay when possible.

Increasing existing coverage: If you have a personal medical insurance plan, it’s important to note that most private insurance providers don’t provide medical coverage abroad. A credit card with travel protections can be a good start, but these benefits typically offer lower coverage limits.

Providing peace of mind: Having insurance can take some of the anxiety out of traveling. Even if the business trip is going according to plan, you'll know that you have safety nets in place should anything go awry.

» Learn more: How to find the best travel insurance

It depends. Some corporations offer travel insurance plans for their employees on the road. You should double-check with the human resources manager of your company as to whether business trips are covered.

It gets tricky if you’re an independent contractor or a freelancer since you don’t have a corporation behind you. As a sole proprietor, make sure to consult with your insurance provider, but be aware that a personal travel insurance policy might not cover business travel.

Instead, we recommend looking into business travel insurance that will cover your personal trips as well.

For example, the annual AllTrips Executive insurance plan from Allianz covers all trips for the year — personal and business — for a one-time fee. This becomes especially handy when you decide to mix business with pleasure and extend a work trip by adding on a few vacation days.

This policy covers trip emergency medical coverage for up to $50,000 and emergency medical transportation for up to $250,000. Travel delay is covered up to $1,600 and baggage loss or delay is covered up to $1,000 each.

An important feature offered by the AllTrips Executive plan is business equipment coverage. If it’s lost, stolen or delayed by the airline, equipment rental or replacement will be covered up to $1,000 each.

AIG Travel Guard , IMG Global and Zurich all offer business travel insurance, too.

Business travel accident insurance covers you in the event of the unthinkable — death or dismemberment. If it sounds like life insurance, it’s because it provides similar coverage but for when you’re traveling on a common carrier, such as an aircraft, a train, a bus or a cruise ship.

If you or someone in your family holds a life insurance policy for you, business travel accident insurance is going to pay out on top of it.

Some travel rewards credit cards offer travel coverage , but it isn’t always on par with a dedicated business travel insurance plan.

For example, the Ink Business Preferred® Credit Card and the United℠ Business Card offer primary auto rental collision damage waiver on cars rented for business purposes. To receive coverage up to the cash value of the car, you must decline the rental company’s own collision damage insurance and pay for the rental with one of these credit cards.

Note that trip cancellation and trip interruption are covered up to $5,000 with the Ink Business Preferred® Credit Card , but trip delay maxes out at $500. Although the United℠ Business Card comes with the same trip delay coverage limit, trip cancellation and trip interruption top out at up to $1,500 per ticket. Baggage delay is limited to $100 per day under both cards’ coverage.

The Business Platinum Card® from American Express offers the same secondary coverage for trip interruptions and trip cancellations: up to $10,000 per covered trip and $20,000 per eligible card per 12 consecutive month period. For trip delay, the card covers up to $500 per covered trip up to two times per 12 consecutive month period. Terms apply.

Although some insurance coverage offered by your travel rewards credit card is good to have, as you can see above, the coverage limits are typically lower than if you were to buy an annual policy or a single-trip business travel insurance policy.

Credit cards also offer common carrier travel accident insurance and cover costs in case of accidental death and dismemberment. In this case, the first two of the aforementioned cards include coverage for up to $500,000, which is higher than what some annual or single-trip business travel insurance policies usually cover.

» Learn more: The best travel credit cards right now

Business travel accident insurance covers costs accrued in the course of business travel related to medical emergencies, accidental death and dismemberment and emergency evacuations. Specific coverage will vary by insurer.

Given that business travel is typically undertaken with specific business goals in mind and requires companies to take on overhead, travel insurance is likely worth the fraction of trip expenses that it costs to ensure that a company doesn't lose both cash and opportunity at the same time should things not go as planned.

Business travel insurance costs will vary based on the destination, duration of the trip, age of the traveler and the amount of money spent on the trip, among other factors. Some insurers offer annual plans, while others provide coverage on a trip-by-trip basis.

While specific coverage will vary from insurer to insurer, a business travel accident policy typically covers expenses related to medical incidents that occur in the course of the covered business travel.

If you have a personal travel insurance policy, check the terms to see how much applies to business travel. If none, consider purchasing an annual insurance plan for frequent business trips or a single-trip policy for occasional business travel and check with your company to see if the cost of the travel insurance is something you can expense.

Remember that some credit cards offer travel insurance for your business, but note the low payout limits if you choose not to purchase additional coverage.

How to maximize your rewards

You want a travel credit card that prioritizes what’s important to you. Here are our picks for the best travel credit cards of 2024 , including those best for:

Flexibility, point transfers and a large bonus: Chase Sapphire Preferred® Card

No annual fee: Bank of America® Travel Rewards credit card

Flat-rate travel rewards: Capital One Venture Rewards Credit Card

Bonus travel rewards and high-end perks: Chase Sapphire Reserve®

Luxury perks: The Platinum Card® from American Express

Business travelers: Ink Business Preferred® Credit Card

on Chase's website

1x-10x Earn 5x total points on flights and 10x total points on hotels and car rentals when you purchase travel through Chase Travel℠ immediately after the first $300 is spent on travel purchases annually. Earn 3x points on other travel and dining & 1 point per $1 spent on all other purchases.

60,000 Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $900 toward travel when you redeem through Chase Travel℠.

1x-5x 5x on travel purchased through Chase Travel℠, 3x on dining, select streaming services and online groceries, 2x on all other travel purchases, 1x on all other purchases.

60,000 Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $750 when you redeem through Chase Travel℠.

1x-2x Earn 2X points on Southwest® purchases. Earn 2X points on local transit and commuting, including rideshare. Earn 2X points on internet, cable, and phone services, and select streaming. Earn 1X points on all other purchases.

50,000 Earn 50,000 bonus points after spending $1,000 on purchases in the first 3 months from account opening.

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Do I need to insure my car for business use?

When you get a quote to insure your car , it’s important that you tell your insurance company exactly what you’re going to be using it for. The trouble is, many people aren’t certain what car insurance companies consider to be ‘business use’ or ‘commercial travelling’.

If you use your vehicle for business use without letting your insurer know – even without realising – you could find that you’re driving without cover. As such, you could find that you’re breaking the law – or your insurance company refuses to pay out if you’re involved in an accident.

To make sure you’re covered, we’ve put together a guide to make sure business car insurance is explained in full.

We’ll cover a range of questions about car insurance for business use, including:

• What is commercial travelling?
• What does business car insurance cover?
• What does ‘commuting’ mean?
• How can you get business car insurance cost-effectively?

When you’re finished reading – you’ll know for certain what kind of cover you’ll need. 

Do I need business car insurance?

People often search for a set car insurance business use definition – but the truth is, there isn’t just one type of business policy. Instead, insurers tend to break their cover down into different classes.

Let’s look at each of those classes in a little more detail.

Social, domestic and pleasure

Sometimes referred to as ‘SD&P’, this level of cover means you can do normal day-to-day driving – like going to the supermarket, visiting friends and family, or having a day out. This type of use will not cover you if you drive your car to get to or from work.

Social and commuting

As well as what’s covered in an ‘SD&P’ policy, a social and commuting policy covers you for commuting to your workplace, i.e. driving there and driving home. You’ll need this type of cover even if you don’t take your car all the way to work – for instance, if you drive to the train station then take the train to work. You’re also likely to need social and commuting cover if you drop someone else to work – even if you’re not commuting yourself.

It’s worth noting that this type of cover does not allow you to drive your vehicle for any kind of business use. Commuting to work is fine, but using your car for any driving that’s related to your work is not.

Business (Class 1)

You’ll need Business Class 1 cover if you use your vehicle for anything relating to the work you do. For example, if you work in one location, but you need to travel to another office or site – or if you need to travel to a meeting, or run a work errand, like picking someone up from the station. Commercial travelling is often covered by this level of insurance too – protecting you if you need to drive your car and stay away from home, on a course for instance.

Business (Class 2)

Business Class 2 cover is very similar to Class 1 – but it also allows a named driver to do the same. For example, if a named driver wishes to take the vehicle to their workplace – then needs to drive to a meeting, Class 2 cover will be required.

Business (Class 3)

If you do a lot of travelling for work, you might meet the criteria for Business Class 3 insurance – designed for people who are frequently travelling between business locations. This level of cover would be appropriate if you’re a salesperson visiting numerous clients, an inspector visiting lots of sites, or a community support worker working at service user’s homes.  

Commercial insurance is designed for people whose vehicle is primarily used for business. For example, if you were a taxi driver, a driving instructor, or even an ice-cream van owner, then you would need commercial cover for your vehicle. 

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Car insurance quotes, which kind of cover is right for you.

Hopefully, those definitions will give you an idea of which level you need if you’re searching for business car insurance quotes. If you’re in any doubt about what’s right for you, you can get in touch with the team here when you request a quote. That way, you can be sure you’re not going to be paying for cover you don’t need – but you’ve got the right level of cover to protect you if you ever need to make a claim.

How much does it cost to add business use to car insurance?

In much the same way that your insurance quote will be tailored to suit your exact need – business cover will be treated in the same way.

So, if you’re driving your vehicle a few miles to work each day on quiet roads, you can expect to pay less than someone who has a 40-mile commute through a busy city centre. 

There are a huge number of factors that will decide how much you pay for your business use, including:

• The kind of work you do
• The routes you’ll be driving
• The miles you’ll cover
• Equipment or goods you’re carrying

How much does commuting add to car insurance?

Again, insurance cover that protects you when you’re commuting depends on the kind of commuting you do. If you’re driving a few miles a secure company car park, your cover will be significantly less than if you have to drive a long way, tackling busy roads and rush-hour traffic – before parking your vehicle on a public street. 

The best way to find cover that fits your needs exactly is to talk to the team here when you request a quote. Everyone’s requirements are different – so to make sure you get the very best value for money, we’ll take your exact circumstances into account.

What’s the most cost-effective way of insuring for business?

With business insurance , it’s important to remember that even if you just use your vehicle for business use once during your annual policy, that’s still considered business use – so you’ll need to have adequate cover in place.

So, what happens if you’re only going to be using your car for business use once a month? Or just a handful of times during the year? Does it make financial sense to buy an annual policy that covers you for much more?

The answer is often no. Don’t misunderstand – you will definitely need to have insurance in place – but if your car mostly used for social and domestic purposes, it might be more cost-effective to seek temporary cover on the rare days you need business cover, rather than covering yourself for the full year.

Of course, this will be different for everyone – but if business use increases your premium significantly, it could be worth looking at temporary business car insurance quotes as and when you need the cover.

Will your employer pay for business cover on your car insurance?

Although it isn’t always the case, some employers will cover the additional cost of business car insurance – so it’s worth asking if you’re not sure.

This is especially true if your vehicle lets you do additional duties within your role. For example, if a social care company pays for business car insurance for the carers they employ, it will often mean they can cover more shifts, or take the people they support to appointments and activities. 

In cases like this, you’ll often find that you’re paid an increased mileage allowance, rather than simply reclaiming the cost of your business cover each month. In other cases, companies have their own insurance policies that can cover employees for using their own vehicles – so it’s worth asking if you need your car for your work.

Other related FAQs

Will car insurance companies price match.

Many insurance companies will price match – especially if you’re renewing your insurance with them. It’s not uncommon for providers to offer exceptional prices if you’re a new customer – but not be quite as competitive when you get your auto-renew price. There’s no harm in asking for a price match – the worst they can say is no!

When does car insurance price go down?

There are many factors that determine the price of car insurance, and some drivers find that the cost of their premiums starts to decrease once they hit a certain age.

How far in advance can you get car insurance quotes?

In general, the earliest you can get an insurance quote is around 30 days before you need the cover to start.

How to compare car insurance

Comparing car insurance quotes is quick and easy, especially if you use a broker or comparison website. Simply enter your details and you’ll be able to browse and compare quotes from different providers.

Occupations for cheap car insurance

Your job can be a factor when an insurance company is working out how much to charge for your premium - and this can mean that there are certain good occupations for cheap car insurance.

What are car insurance groups?

All cars are assigned into a group based on how much they cost to insure, with group 1 being the cheapest to insure up to group 50 being the most expensive. Insurance groups are a rating of the car for insurance purposes.

What car insurance do you need?

The level of cover you need when it comes to car insurance depends on what you want to be able to claim for.

Do car insurance quotes affect credit score?

Although it will be registered, getting car insurance quotes does not have an impact on your credit rating, so it won’t be taken into account if you apply for a loan or other form of credit in the future.

Can you have two insurance policies on one car?

Although it’s perfectly legal to have two car insurance policies running at the same time, it can make claims unnecessarily complicated. As such, it’s worth making sure you only have one policy in place for your vehicle.

Are car insurance settlements taxable?

Generally, car insurance payouts are not taxable. The only exception to this rule is if any repair done to your car actually boosts its value – but the way insurers work means this is unlikely to happen.

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Business Car Insurance: Everything You Need to Know

When owning or running a business, having the right auto insurance is a must. When you're shopping for car insurance for your business, be sure to do your research to guarantee you have the right coverage for every vehicle in your fleet.

When owning or running a business, having the right auto insurance is a must. When you're shopping for car insurance for your business, be sure to do your research to guarantee you have the right coverage for every vehicle in your fleet. Business car insurance differs from personal insurance policies in that it covers the commercial use of vehicles. Understanding what business insurance is, knowing how much it costs, and getting a quote will make running your business just that much easier.

What Is Business Car Insurance?

What types of coverage can i get with a business automobile policy.

Your BAP should include property damage and liability coverage. If you are leasing or making regular payments on the vehicle, different coverage types may be required.

Collision: Collision coverage often can only be used in combination with comprehensive and liability coverages. Collision compensates the insured for damage to the vehicle caused by a traffic accident or striking a static object, such as a fence or telephone pole. Collision won't cover you for falling objects or theft. Collision with another motorist or with a building is covered under collision even if you're at fault.

Comprehensive: Comprehensive coverage covers damage to the car from events out of the driver's control. This includes damage from theft, vandalism, natural disasters like tornados, hurricanes, earthquakes, striking an animal in the road, and falling objects such as tree branches or hail.

Liability: Liability coverage compensates for injuries sustained by another person and damages to another's property. If a driver for your company injures someone in a traffic accident and that person files a claim against the company, liability insurance will help pay for the claim. Most states require liability in their car insurance minimums. Liability insurance doesn't have a required deductible, so you can choose your deductible based on your level of risk. In some states, your BAP liability coverage will not cover you if a driver is guilty of reckless driving or driving while impaired.

Do I Need Business Car Insurance?

If you use your car for business, not including your regular commute, you'll need business insurance. These are some of the most common reasons you would need a BAP:

• Ownership or leasing: If a corporation or partnership owns or leases a vehicle
• High mileage for work: If you're driving thousands of miles for work, including using your vehicle for ridesharing or delivery
• Vehicle weight or load capacity: If your vehicle weighs over 10,000 pounds or can carry a load over 2,000 pounds
• Regular travel to different locations: If you travel to many different locations often, such as out of state or to different cities, job sites, or offices
• Carpooling or shuttling: If it is part of your job to drive your co-workers or management to meetings, to and from the office, or to several different job sites

Even if none of these apply to you, you may still need business car insurance if you take regular trips to the post office, bank, or training courses for your work.

How Much Does Business Car Insurance Cost?

Because business car insurance policies have different coverage than individual policies, they are often more expensive. This is because you're driving for longer and more frequently on unfamiliar roads, which increases risk factors. Here are some things that will influence your BAP's cost:

• The driving records of employee drivers
• Policy deductible
• Policy limits
• The number of vehicles you employ
• The type of vehicle and its value
• Your level of risk
• Your insurance claims history

Business car insurance costs $142 per month at the midpoint. Almost half (44 percent) of Insureon customers with small businesses have policies cheaper than $125 per month.

What Is The Difference Between Personal and Business Car Insurance?

Business auto insurance policies are intended for commercial vehicles. These vehicles usually drive for longer and more often than personal vehicles. BAPs usually have higher limits because of the increased risk that comes with the increased frequency. Personal auto insurance covers claims associated with personal use only, like your commute and travel outside of work. Their limits are lower and typically cost less. If you are driving your car for work and are in an accident, your insurance provider could deny your claim if you don't have a BAP. Sole proprietors who use a vehicle they own for work should have business car insurance even if they drive for personal use most often.

What Do I Need to Get a Quote?

Getting a quote is quick, and by having the necessary information ready, receiving an accurate quote can be even quicker. Here is some of what you will need:

• Estimated annual mileage
• The vehicle's registration
• Occupation, job title, or employment status
• Any claims within the previous five years
• The details of any driver you wish to be on the policy, including driver's license numbers
• The year, make, and model of the car or cars on the policy

These are the most common things you will need to supply your insurance provider with to receive a quote, but depending on the company, they may ask for more or different information. In either case, most information is relatively easy to obtain, and getting a quote online can take mere seconds.

Insuring your company vehicle has become one of the simplest and easiest ways to bring a business owner or employee driver peace of mind. Getting insured and on the road quickly and cheaply starts by heading online to get a quote today.

https://www.insureon.com/small-business-insurance/commercial-auto

https://www.investopedia.com/terms/b/business-automobile-policy-bap.asp

https://www.caranddriver.com/car-insurance/a32714517/how-car-insurance-works/

https://www.caranddriver.com/car-insurance/a31744639/what-car-insurance-do-i-need/

https://www.caranddriver.com/car-insurance/a31756595/how-to-get-car-insurance-quotes/

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Business travel car insurance, your personal auto policy may not cover you if you’re driving for , so it's important to purchase additional for travel. you must disclose that you had an accident in a company-owned vehicle in the event that you have to file a claim. claims can raise the rates of your travel . find cheaper rates with our free tool below., free car insurance comparison.

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Rachael Brennan

Licensed Insurance Agent

Rachael Brennan has been working in the insurance industry since 2006 when she began working as a licensed insurance representative for 21st Century Insurance, during which time she earned her Property and Casualty license in all 50 states. After several years she expanded her insurance expertise, earning her license in Health and AD&D insurance as well. She has worked for small health insuran...

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Ty Stewart is the founder and CEO of SimpleLifeInsure.com. He started researching and studying about insurance when he got his first policy for his own family. He has been featured as an insurance expert speaker at agent conventions and in top publications.  As an independent licensed insurance agent, he has helped clients nationwide to secure affordable coverage while making the process simpl...

UPDATED: Mar 24, 2024

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Advertiser Disclosure : We strive to help you make confident car insurance decisions. Comparison shopping should be easy. We are not affiliated with any one car insurance company and cannot guarantee quotes from any single company.

Our car insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different car insurance companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.

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Key takeaways...

• Your personal auto insurance policy may not cover you if you are driving for business
• If your business has more than one vehicle, or you use a vehicle to make deliveries, you may need a commercial policy
• There are special considerations for renting a car when traveling on business

If you drive a lot for your job, you may need business car insurance.

Compare business car insurance options today. Just enter your zip code above to get started for free.

Consider these difference scenarios for those who drive for business.

Table of Contents

Driving Your Own Car for Business

If you are driving a car that is owned by you for business, you may think that your personal auto insurance policy will cover you if you are in an accident.

The fact is, it may not. And even if it does, you may have to pay a deductible, and you may see an increase in your premium that can last for several years.

If employees are routinely asked to drive their personal cars for business, check to see if your employer has a commercial policy that covers employees when they are driving for business.

If it does, you will want to make a claim on your employer’s policy. That way, your personal auto premium may not go up.

The first time you are asked to use your personal vehicle for company business, ask for the details of the corporate insurance policy if one exists.

Keep the following information in your vehicles whenever you drive it for business:

• The insurance company’s name
• The insurance company’s phone number
• The policy number

If your employer does not have a policy, you will need to claim the accident on your own policy. When you make a claim , be sure to tell the adjuster that you were using the car in a business capacity.

Your insurance company may pay the claim, but they may then try to recoup some of the payment from your employer’s insurer.

Read More: What is the insurance policy number on an insurance card?

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Driving Your Company Car for Business

If you drive a lot for business, you may be given a car to drive which is owned by your company. In this case, the company will pay to insure the car and will pay any deductible if you are in an accident.

An accident in a company car may not raise your personal insurance rates unless you receive a citation for the accident.

If you are ever asked if you have had an accident or claim, you must disclose that you had an accident in a company-owned vehicle.

If you do not disclose this, you could run into trouble if you later have an accident in your personal vehicle and the insurance company discovers that you weren’t truthful about your driving record.

Renting a Car When Traveling on Business

If you are traveling on business, you may need to rent a car to drive when you arrive at your destination. There are some unique considerations around renting a car while traveling on business.

Different states have different requirements for minimum insurance coverage . The coverage on your personal policy or your company’s commercial policy may be different than what is required in the state where you are driving.

When you are driving a rental car out of state, regardless of whether it is for business or pleasure, the limits of your insurance policy will automatically adjust to the minimum required limits in the state where you are driving.

For example, let’s say your personal policy or your company’s policy has liability limits of $15,000 per person and $30,000 per occurrence for bodily injury and $5,000 for property damage because those are the minimum requirements in your state.

If you are driving a rental car in a state where the minimum requirements are $25,000 per person and $50,000 per occurrence for bodily injury and $10,000 for property damage, your limits will be raised to the state minimum while you are driving in that state.

This increase in limits ensures that you are in compliance with the minimum requirements in the state in which you are driving.

Some credit card companies provide insurance when you rent a car using their credit card. To find out if yours does, and how much insurance they provide, call the credit card company before you leave on your trip.

The car rental company offers optional insurance, often at a high price. Understanding your existing policy and any additional protection offered by your credit card company will help you to decide if it is necessary for you to purchase this optional insurance coverage.

If you don’t own a car of your own but frequently rent for business, consider purchasing a non-owner policy.

These policies may cover you for non-business use of a rental car when traveling on business, such as driving back to your hotel after a non-business dinner or night out, or a similar circumstance.

Your company’s commercial policy may not cover you in these circumstances, so you’ll have to rely on personal coverage. If you don’t have coverage for your own vehicle, but still drive often, a non-owner policy can provide the protection you need.

If You Are a Business Owner

If you own a business and have a car that is owned by the business, the business should insure it, especially when considering “ What is business use” car insurance? ” The primary insured on the policy should be the business.

You need the same types of coverage that you need for a personal policy including:

• Comprehensive
• Personal injury

Depending on how much and what kind of driving you do, you may need a business insurance policy, sometimes called a commercial policy.

A commercial policy can have much higher limits than a personal auto policy. It’s not unusual to see a commercial auto policy with bodily injury or property damage liability limits of $1,000,000, as opposed to $50,000 or so for a personal auto policy.

When you consider that you may be more likely to be involved in an accident if you have to drive for your business, and the fact that someone may be more likely to sue a business than an individual, it makes sense to have a commercial policy.

If you use your vehicle to make deliveries, if you have more than one vehicle, or if you have employees who use the vehicle with any regularity, you should look into a commercial policy.

A personal auto policy will often suffice if you are the only one driving the vehicle and if you use it primarily to get to and from client sites. A good example of this is a van or truck used by a plumber, electrician, or other artisan contractor.

These vehicles can often be insured under a personal policy.

If you are a business owner, you may have an umbrella policy as well to protect you from being sued or from a large claim resulting from an auto accident. Be aware that a personal umbrella policy usually excludes business-related liability.

To make sure you are fully protected, you should look into a business umbrella policy as well.

Ridesharing Services

If you use your car to drive for a ride-sharing service like Lyft or Uber, you may not be able to rely on your personal insurance policy.

Some policies exclude coverage when operating your vehicle for hire, so be sure to check with your insurance company before you set out to pick up that first passenger.

Some ride-sharing companies provide additional liability insurance for their drivers, but only when the app is on or when there is a passenger in the car. Check the agreement you have with the company you drive for, and watch for updates.

It’s common for people to have to drive in the course of their work, but it’s important to make sure that you and your business are protected.

An uninsured accident could be financially devastating for you and your business, so make sure that you have the proper insurance coverage in place.

Find the coverage you need for the best rate by comparing car insurance quotes side-by-side right here.

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Am I Covered If I Use My Personal Car for Business Purposes

If traveling or running an errand for your workplace, it may be more convenient to use your personal vehicle. However, if a burglary or accident occurs while you are driving for business purposes, your vehicle may not be covered under personal auto insurance. While it is generally not recommended to use your personal vehicle for business, some policies allow you to have full coverage if you encounter a problem.

What Is Personal Auto Insurance?

Personal auto insurance is required for all drivers in most states and is designed to cover your vehicle for individual needs, such as going to the grocery store or taking a road trip. If you get into an accident, personal car insurance ensures you are covered for damages and medical expenses. It may also cover any damage to property resulting from the accident. If your car is stolen, personal car insurance protects your investment.

What Is Business Auto Insurance?

Business vehicle insurance, or commercial auto insurance, covers all business-related travel in your vehicle. Since business transportation often is more extensive and frequent than personal travel, business auto insurance may be more expensive than personal policies.

In most states, vehicles used for company purposes must be covered under business auto insurance. This requirement ensures protection for the driver and other parties involved in the motor vehicle accident. Commercial auto insurance can also protect vans, trucks, or other business vehicles.

Business car insurance is a great option for self-employed individuals. It can also be ideal for those who carry expensive tools and equipment in their car or commercial vehicle. In both cases, it delivers peace of mind if the vehicle is damaged in an accident or stolen.

When Can Business Travel Be Covered Under Personal Car Insurance?

Select personal car insurance policies cover business use, typically with stipulations attached. Occasional work trips to meet with clients may qualify for protection under personal auto insurance, as well as the daily commute to your workplace, provided it is one location.

However, if you have to take frequent work trips, or if you travel to another area to pick up supplies or goods, you likely will not receive coverage under personal car insurance. In addition, personal car insurance does not cover vehicle use during delivery service jobs, such as pizza delivery, GrubHub, or DoorDash. It also does not protect Uber or Lyft drivers if they get into accidents. Instead, you’ll want to register your vehicle for commercial auto insurance.

Many companies do not cover business vehicles under a personal vehicle insurance plan because business-use vehicles typically are on the road more often than personal-use vehicles, increasing the likelihood they will get into an accident. This also is why business vehicle insurance is more expensive than personal car insurance.

Which Policy Should I Choose?

Before deciding on the right vehicle insurance policy, it can be beneficial to discuss your options with an agent. These professionals guide people in finding the best insurance policies based on their unique circumstances and needs. They also may assist you in bundling insurance to give you coverage benefits.

Working with an independent insurance agent like us, provides many advantages when it comes to finding the perfect combination of insurance policies. We have access to a variety of insurance policies from multiple companies and work diligently to help you locate sufficient coverage at an affordable price.

You also may want to add extra policies to your basic personal car insurance policy. The standard personal car insurance policy won’t cover everything in the case of an emergency. Individuals can choose from many optional add-on insurance policies. For example, there may be additional insurance policies for ride-sharing vehicles like Uber or Lyft. Add-ons for collisions, vandalism, theft, weather, and glass coverage if windows and windshields become cracked or damaged also are available.

Personal Auto Insurance at Martin Insurance Agency, a division of Enders.

If you are in Lancaster County Pennsylvania, or the surrounding counties, let Martin Insurance / ENDERS help you find the right personal auto insurance coverage. We have spent decades building our reputation for client-centered service in the communities we serve. Whether you’re looking for personal or commercial auto insurance, our insurance agents will work with you to find the best coverage options for your vehicle and peace of mind. To learn more about personal auto insurance, contact us at Martin Insurance today and get a quote .

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How Much Does It Cost to Add Business Use to Car Insurance?

Written by, Marija Petkova

Updated December, 11, 2023

Impact-Site-Verification: 6dac2919-b7c4-4048-8a97-49b79f771764

Did you know that if you use your car for business purposes, you’re required to add business use to your car insurance? In this guide, we’ll cover the different classes of business car insurance,  explain how much does it cost to add business use to your car insurance and give you some tips on how to reduce the costs of your premiums. 

Let’s dive in.

Do I need business car insurance?

Your standard car insurance covers you for what is known as Social, Domestic and Pleasure use which includes your normal day-to-day driving and commutes to and from your place of work.

But if your job requires you to use your car extensively for business purposes such as visiting different offices or sites, driving clients around or taking on long-distance work-related trips, and you’ll need a specialised business car insurance policy on top of your standard one so you can get the right cover.

If you fail to inform your insurer that you’re using your car for business and you get involved in an accident, they may invalidate your policy and reject your claim.

Moreover, you’ll be driving without cover, which is against the law and could result in a hefty fine.

Car insurance policies for business use are divided into three classes, each offering a different level of cover.  As a general rule of thumb, the more you use your car for business, the higher the class of policy you’ll need.

• Class 1 Bussiness Insurance will cover you if you need to use your vehicle to travel from your usual place of work to another office or site, run errands or visit clients or customers. These policies will often cover you for commercial travelling , too – if, for instance, you need to take a work-related trip and stay away from home for a couple of days.
• Class 2 Bussiness Insurance offers the same coverage as Class 1, but it also allows you to add a designated driver to your policy who will also be covered for using your vehicle for business.
• Class 3 Bussiness Insurance offers the most comprehensive coverage and it is suitable for those who use their vehicle frequently for business, drive hundreds of miles per week and need multiple named drivers on their policy. In addition, this level of cover is necessary if you work as a door-to-door salesperson or an inspector visiting many sites.

It’s worth noting that if you use your vehicle primarily for business, such as taxi driving, uber or delivery, you’re required to take out a specialist insurance policy known as commercial car insurance.   

How much does it cost to add business use to car insurance?

Generally, car insurance policies for business use tend to cost more than standard policies. 

Apart from the fact that business users most certainly will rack up a lot more miles than the average driver, they’ll also be doing a lot of their driving during busy hours and be visiting places that they’re unfamiliar with. 

All of this increases the risk of an accident and therefore raises the likelihood of claiming, which is why business car insurance premiums are higher than on a standard policy. Still, if you are using two cars there is the option to insure both of them in the same name.

However, the exact cost of business car insurance will mainly depend on the type of policy you have, as well as several other factors, including:

• The nature of your business
• Your mileage
• The routes you’ll be driving
• Whether you carry equipment or goods
• Your vehicle’s model

So, if you’re driving only a few miles each day on quiet roads, your premiums are likely to be much lower than on someone who needs to spend lot more hours on busy roads.

What’s the most cost-effective way of insuring for business?

Adding business use to your car insurance will most certainly cost you some extra, but there are always ways to keep the costs down.

• Shop around – One way to ensure that you’ll get the best deal out there is to shop around and compare quotes from different insurance providers.
• Choose your vehicle’s model carefully – Models with smaller engines and better fuel efficiency are generally less expensive to insure than the latest top-of-the-line vehicles.
• Maintain your vehicle – Taking proper care of your vehicle will make it safer to drive and reduce the risk of accidents , which will also help you get lower insurance premiums.
• Build up your No claims bonus – Having a good No claims bonus record for your standard insurance can also help lower your business car insurance premiums .
• Secure your vehicle – Taking extra security measures when leaving your car parked, leaving it in a safe location overnight , as well as installing security devices , such as alarms and steering wheel locks, will help you optimise your vehicle’s security and, at the same time, reduce the costs of your business insurance premiums .
• Make a one-off payment – Paying for your car insurance in monthly instalments may be more manageable, but it will add interest to your overall cost. Thus, if you can, try and make a one-off payment each year instead of splitting the price, and you’ll end up saving hundreds on interest .
• Ask your employer for contributions – Some employers will cover the additional cost of business car insurance , and others may pay you an increased mileage allowance, so it might be worth asking your employer if you need to use your own car for business purposes.
• Choose the right car insurance cover for business use – Depending on how often you use your car for work, and there are several different levels of business cover you can add to your car insurance. Thus, to minimise the costs, it is crucial to get the right one for your specific needs. For instance, if you only use your car occasionally, there is no need for you to pay for a Class 3 Business Insurance that covers long driving distances. Also, if you need your car for business only several times per year, it may be more cost-effective to get temporary business cover for those days instead of purchasing the annual cover.

You may be interested in: One-day van insurance

Bottom line  

So, how much does it cost to add business use to car insurance? Adding business insurance to your car can be costly, but it is something that needs to be done if you use your vehicle for business purposes on a regular basis. Hopefully, by following our tips on reducing your business car insurance premiums, you’ll find yourself a good deal at an affordable price.

by Marija Petkova

My name is Marija, and I'm a financial writer at DontDisappointMe. Although finance might not be everyone's cup of tea, my 10+ years of working in one of the biggest banks in my country, and my interest in extensive research on everything finance/investment-related, have made me somewhat of an expert in the field (if I do say so myself). No longer having the passion to work in a corporate setting, I decided that I couldn't let all of this knowledge go to waste so I started writing. And, here I am! Today I try to share my knowledge with my audience in the hopes of making this topic as simple and interesting as possible. In my leisure time, I like spending time with my family and travelling to new locations.

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Do I Need to Add Business Use to My Insurance?

How Do I Add Business Use to My Policy?

If you need to add business use to our policy, just get in touch and we’ll sort you out. Give us a call on 0330 024 4747 , or email us at [email protected] .

If this change is as a result of you or an additional driver changing occupation, or your annual mileage is going to increase let us know! That way we can make sure you have the cover you need.

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Business car insurance shaped around you

Our temporary cover includes business use, which allows you to drive a vehicle for business purposes: 

• available for 1 hour up to 30 days
• available on your current car, or a car you don’t usually drive
• includes social, domestic and pleasure (SD&P) cover as standard.

How does temporary business car insurance work?

It’s really easy and only takes a few minutes. Just follow these three easy steps:

Fill out the quote form

To complete the quote form, let us know your name, UK address and GB driving licence number. We’ll also need your date of birth, occupation, and the registration number of the car you want to drive.

You’ll get a quote

Tell us when you need the cover to start and how long you want it to last.

Buy and off you go!

To finalise the business insurance, you’ll just need your payment information, either a debit or credit card.

What is business car insurance?

Business car insurance in the UK is similar to regular car insurance – however, it also covers you for several other work-related purposes. With a regular car insurance policy, you’re only covered to drive to and from a single place of work, meaning that you’re not protected if you need to travel between different locations, visit a client, make a sales call or travel with a colleague. So, if you need to do any of those things, you need to add business cover to your policy.

The good news is that business-use insurance is included in our temporary car insurance policy at Dayinsure, which makes it perfect if you’re looking for any temporary business travel support.

What does our business car insurance cover ?

• borrowing a car for work on a day-by-day basis
• borrowing a colleague’s car or using a company car or commercial vehicle to visit clients or other branches
• travelling to conferences, meetings and training sessions away from your usual place of work
• sharing cars and vans between employees so you can split the driving for business trips
• using a bigger vehicle to transport extra equipment or large items
• borrowing a vehicle when your business vehicle is in the garage for repairs.

Please note : This will not cover delivery use, door-to-door sales or taxi usage. It also cannot be used on hired vehicles.

Do you need business car insurance on top of your annual policy?

Your regular car insurance policy will cover you to commute to and from a single place of work. Generally, it won’t cover you for anything else related to work travel beyond that. Normally, if you’re planning to use your car for multi-site visits, visiting clients, making sales calls or travelling with a colleague, you’ll need to add business cover to your policy.

Some common examples of annual policies that don’t cover business use:

• those that cover you just for social, domestic and pleasure (SD&P) use – SD&P only allows you to drive for your own personal use
• those that have commuting cover already – this often only provides cover to and from a regular place of work
• those with added named drivers – in these cases, even if the primary driver has business use insurance, the additional drivers will likely only have business cover if it’s been requested.

How can Dayinsure business car insurance help you?

From hourly or one-day business car insurance to a longer policy, our temporary cover is perfect if you’re looking for short-term business cover. Our business car insurance makes a great addition to your regular annual insurance, allowing you to get that all-important protection at low cost.

Dayinsure business car insurance provides comprehensive cover, which means you don’t already need to have any cover on your vehicle to benefit from it. It’s also perfect for when you want to borrow a car  from a family member, friend or colleague.

If you have an existing SD&P policy, you may not want to pay for business use on your annual policy when you only plan to use your personal car on business occasionally. A temporary policy may cost less than adding business cover to your annual package so, if you only need to use your car  for business on rare occasions, temporary business insurance is the answer.

Why choose Dayinsure temporary business car insurance?

Still deciding whether temporary business car insurance is for you here are the key things you should consider:, looking for business van insurance.

With our temporary van insurance , you’ll be covered for business use as standard, meaning that you’ll be able to use the van for your day-to-day business needs. Perfect for when you need some extra space for a project, or need to borrow a friend or family member’s van for work while yours is in the garage.

Please note : This will not cover delivery use, door-to-door sales or taxi use. It also cannot be used on hired vehicles.

What Our Customers Say

Not already insured?

If you don’t already have SD&P cover on the vehicle or you’re not sure what to do, you can purchase our Dayinsure short-term policy. It gives you comprehensive coverage for both SD&P and business use.

Who is eligible for business or company car insurance?

We can cover most drivers aged 18 to 75 years old, along with many UK-registered vehicles (subject to vehicle and underwriting criteria).

Vans up to 3.5 tonnes gross vehicle weight (GVW) can be covered. You can find out more about our business car insurance acceptance criteria below in our key documents.

How much is business car insurance ?

One of the main benefits of taking out our temporary business insurance is that it offers a great-value solution instead of adding business cover to your regular annual policy. As for how much your business car insurance will cost, that depends on a various factors, including how long you want cover and the type of vehicle you’re driving.

We can give you a quote for your business car insurance cost in a matter of minutes. Simply fill out our quick and easy quote form – we just need a few basic details and when you need the cover to start and end – and we’ll give you a price for your policy.

View key documents

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The Best Business Travel Insurance (2024 Guide)

Business travelers need travel insurance cover potential unexpected delays, cancellations, interruptions or baggage loss.

in under 2 minutes

Nicole Leigh West is an experienced lifestyle journalist and writer for publications including Wanderlust, TripSavvy and Vacations & Travel. Along with roaming the globe and penning fiction novels, Nicole works for World Words as a sub-editor and writer.

Tori Addison is an editor who has worked in the digital marketing industry for over five years. Her experience includes communications and marketing work in the nonprofit, governmental and academic sectors. A journalist by trade, she started her career covering politics and news in New York’s Hudson Valley. Her work included coverage of local and state budgets, federal financial regulations and health care legislation.

Travel insurance for business travelers covers specific needs that may differ from personal vacations. For example, you may need an insurance policy to cover a laptop or other business equipment and a rental car. Trip insurance can also provide peace of mind that you have coverage while traveling so you can focus on work.

We at the MarketWatch Guides Team have researched the best travel insurance companies to help you choose the right business travel insurance policy. Read on to learn more about the benefits, coverage options and cost of business travel insurance.

Why Trust MarketWatch Guides

Our editorial team follows a comprehensive methodology for rating and reviewing travel insurance companies. Advertisers have no effect on our rankings.

Companies Reviewed

Quotes Collected

Rating Factors

Why Get Business Travel Insurance

Often referred to as corporate travel insurance, business travel insurance can protect you from financial risks and losses during work trips. While personal and business insurance products still offer trip cancellation and medical coverage, there are a few key differences compared to standard travel insurance.

Business travel often includes unique risks due to frequency, trip costs and busy itineraries that require transportation. Frequent business travelers may benefit from multi-trip or annual insurance plans, along with generous coverage limits for trip delays, lost luggage and stolen business devices. These types of trip policies can help combat financial losses related to work travel.

What Business Travelers Need Covered By a Travel Insurance Policy

Below is a list of the main policy types for business trip insurance.

Trip Cancellation and Interruption Coverage

If you need to cancel a business trip or cut it short due to disruptions, travel insurance with trip interruption and cancellation coverage can help recover non-refundable, prepaid costs. Reimbursement is subject to reasons approved by your travel insurance provider and can vary. Generally, travel insurance covers cancellations due to the following unforeseeable events:

• The insured traveler or accompanying business partner suffers a serious illness or injury
• Death of a family member
• Natural disasters
• Terrorist events
• Inclement weather resulting in canceled flights
• An unexpected legal obligation such as jury duty

Since most policies cover cancellations for unexpected or emergent reasons, business travelers may choose to upgrade their plan with cancel for any reason (CFAR) coverage . CFAR coverage is an add-on that allows you more flexibility in canceling your trip.

Baggage and Personal Belongings Coverage

Travel insurance with baggage coverage reimburses partial or full costs due to:

• Lost or damaged baggage
• Theft of valuable business equipment
• Loss of travel documents

Furthermore, most policies provide baggage delay insurance to reimburse you for purchased necessities (like clothes and cosmetics) if your luggage arrives late to your destination.

Business Equipment Coverage

It’s important to check the fine print of policy documents to ensure you have sufficient coverage for specific business equipment. Many providers offer additional business coverage as an upgrade. For example, the Allianz AllTrips Executive Plan features specific benefits for business equipment and rentals.

What Is Business Travel Medical Insurance?

Business travel medical insurance can help cover emergency medical expenses during business trips. While some private health insurance extends international coverage, government health insurance will not pay for your medical care while traveling abroad. Comprehensive travel insurance plans also include emergency medical evacuation and repatriation coverage, along with accidental death and dismemberment benefits.

Travel medical insurance typically pays emergency healthcare costs related to:

• Ambulance service
• Hospital or medical facility fees
• Emergency dental work
• X-rays and lab tests

Business Travel Insurance Cost

The cost of travel insurance depends on your provider, coverage selections and destination. Generally, travel insurance policies cost $35 to $200 per trip. However, your cost may vary if you add business-related coverage such as device protection or rental car damage. You may also have a different rate if you opt for multi-trip or annual coverage.

You can also check with your credit card company to see if you have existing coverage, or opt for coverage through your airline. We suggest requesting quotes from at least three providers before selecting a travel insurance plan.

Benefits of Business Travel Insurance

Whether you’re embarking on a single-trip business venture or you travel for work regularly, it pays to safeguard your travel investments. Business travel insurance costs are minimal in comparison to expensive last-minute cancellations or health emergencies while overseas.

Here are some of the top benefits of a business travel insurance plan:

• Financial protection against unforeseen events
• Reimbursement of prepaid, nonrefundable costs due to travel delays, interruptions and cancellations
• Coverage of lost or stolen business equipment
• Some providers offer 24/7 travel assistance services for business travelers

Tips for Choosing the Right Business Travel Policy

Most comprehensive travel insurance policies are suitable for business travelers. You may choose add-ons for extra protections, including rental car, CFAR and business rental equipment coverage. To choose the right policy, consider the below tips:

• Compare coverage options, exclusions and costs between insurance providers
• Evaluate the reputation and financial stability of each insurance company
• Look for coverage that includes loss or delay of business devices
• Consider providers that offer 24/7 travel assistance and concierge services for business travelers

Considerations for Business Travelers

Before purchasing business travel insurance, consider your personal requirements. For example, you may need coverage for pre-existing medical conditions. If you are traveling abroad, international travel or visa requirements could require valid travel insurance.

If you’re traveling with expensive electronic devices, check that your policy includes valuables or device coverage. Also, consider baggage loss coverage if you plan on checking any valuables with your bags. For regular business travel, consider purchasing multi-trip or annual insurance policies to pay one premium for multiple trips made during a specific time frame.

Is Business Travel Insurance Worth It?

Business trips often include significant prepaid costs for airfares, hotels and car rentals. It is ultimately up to you to decide if travel insurance is worth it for your next business trip. However, travel insurance for business travelers helps cover your financial investment, along with any valuable items you take with you or rent. Comprehensive travel insurance also provides peace of mind in the event of medical emergencies while you’re on business trips overseas.

Frequently Asked Questions About Travel Insurance for Business Travelers

What does business travel accident insurance cover.

Business travel accident insurance protects employees who travel frequently for work. Most policies cover accidental death or dismemberment, which typically applies to incidents that occur on common carriers in transit (like an airplane). However, some plans may include other medical benefits.

Will travel insurance reimburse expenses for a canceled business trip?

Reimbursement rates and conditions depend on your travel insurance policy. If your trip gets canceled for a reason covered by your travel insurance provider, you can claim reimbursement of prepaid, non-refundable costs, such as flights and hotels. Acceptable reasons for cancellation generally include unforeseeable emergencies like serious illness or injury.

Does travel insurance cover business equipment?

Not all travel insurance policies cover business equipment. Check with your provider to ensure you have coverage for specific business items or devices. Many companies offer upgrades and add-ons for extra coverage of valuables, along with plans specifically designed for business travelers.

What is Business Travel Insurance? | Money

U nexpected events can disrupt even the most meticulously planned business trip . From medical emergencies to trip cancellations , these hiccups can be stressful and costly.

This is where business travel insurance comes in. It acts as a safety net, safeguarding you against a variety of unforeseen expenses:

• Medical emergencies : This includes coverage for unexpected medical bills and treatment costs incurred during your trip.
• Trip cancellations and delays: This coverage provides reimbursement for non-refundable trip expenses if your journey is canceled or delayed due to covered reasons like illness or bad weather.
• Lost or delayed luggage: This covers the cost of replacing essential items if your luggage goes missing or arrives late.
• Medical evacuation and repatriation : Coverage for transport back home in case of a medical emergency .

Many business travel insurance plans go beyond the essentials, offering additional benefits:

• 24/7 Assistance: Access to customer service representatives who can help with travel arrangements, finding medical care , or language translation.
• Business Equipment Coverage: Upgrade your policy to include coverage for laptops, tablets, and other business essentials in case of loss, theft, or damage.
• Rental Vehicle Coverage: Add coverage for rental cars used during your business trip .

How does business travel insurance work?

Business travel insurance affords many of the same protections as personal travel insurance .

Most travel insurance policies reimburse travelers — up to the plan’s limits — if their insured trip is canceled, postponed or delayed due to a covered reason or if they incur emergency medical expenses. They also generally cover lost or delayed luggage and medical evacuation and repatriation.

Additionally, most insurers provide 24/7 customer service and assistance with things like making travel arrangements, finding medical care facilities and obtaining language support.

While coverage options and details vary by insurer, some of the best travel insurance companies let you customize their standard policies by adding coverage for business property and rental vehicles — for an additional cost.

Research the specific types of coverage offered by each company you’re considering before purchasing a plan. It may also be helpful to review our guide on what travel insurance covers .

What does business travel accident insurance cover?

Business travel accident (BTA) insurance can cover different things, depending on the company and policy you select. There is no standard definition for terms like business travel insurance and business travel accident insurance. Companies market various policies under names like these, but policy names don’t guarantee specific types of coverage.

That said, BTA policies may cover:

• Medical expenses stemming from an accident
• Medical evacuation and repatriation
• Emergency travel assistance
• Accidental death and dismemberment
• 24/7 travel assistance

Depending on the insurer, coverage may also extend to personal trips tied to business ones.

Types of coverages in a business travel insurance policy

Again, while coverage options vary by insurer, you can generally find travel insurance plans that bundle the following types of coverage.

Trip cancellation and interruption

When you take a trip, you typically pay for things like your flight, accommodations and activities before you leave. Trip cancellation and interruption insurance reimburses you for those pre-paid, non-refundable trip costs if you cannot travel due to a covered reason.

Your policy will list covered reasons for canceling or interrupting your trip in the description of coverage. However, some common covered reasons include:

• Illness or injury: You, your travel companion or a family member not traveling with you becoming ill or getting injured
• Death: The death of a family member or traveling companion
• Inclement weather: A natural disaster or severe weather at your destination
• Job loss: You or your traveling companion losing their job or getting laid off

To cancel your trip for reasons other than those listed as covered under your policy, you must purchase cancel for any reason (CFAR) coverage. As the name suggests, CFAR travel insurance will reimburse you a percentage of your total trip cost (typically 50% to 75%) if you cancel for any reason at all.

CFAR is generally sold as an upgrade, so it costs extra. And to qualify you must insure the entire cost of your trip and purchase coverage within a certain timeframe, among other potential requirements.

Medical expenses and emergency medical evacuation

Most travel insurance policies cover unforeseen medical emergencies and illnesses. So, if you sprain an ankle or get food poisoning during your business trip, your policy should reimburse you for a portion of the medical expenses you incur. This generally extends to dental emergencies and even emergency medical evacuation to the nearest medical facility and/or your home after you’re discharged.

However, it’s important to note that most plans don’t cover pre-existing conditions . Some insurance companies offer a waiver of their pre-existing conditions exclusion, provided you meet certain requirements. These generally include purchasing coverage soon after booking, insuring the full cost of your trip and being medically fit to travel.

Similarly, doctor visits for routine checkups or prescription refills aren’t covered under travel insurance. But if you’re a U.S. citizen traveling domestically, these and other expenses are likely covered under your health insurance policy.

Travel delays and missed connections

Your business travels could be interrupted by a missed connecting flight or unforeseen arrival or departure delays. In either scenario, you may be faced with unexpected costs such as last-minute hotel bookings or additional transportation expenses to reach your destination.

Most travel policies reimburse you (up to a maximum) for expenses stemming from delays in your travel plans. However, policies generally require a certain number of hours to have passed — three hours or more, for example — before this coverage takes effect.

Baggage loss and delay

If you’re traveling with luggage, there’s always a chance the airline could lose it or send it to the wrong location. If that happens, you may need to purchase new clothes and supplies.

Baggage loss and delay coverage can reimburse you for some of these expenses. However, just as with travel delay coverage, most plans require a certain number of hours to have passed before coverage takes effect.

Business equipment coverage

Companies selling business travel insurance offer optional coverage for business equipment such as laptops, tablets and cameras. If the equipment is lost or damaged by your airline carrier or is stolen during your trip, the policy can cover the cost of repairing or replacing the item — up to your policy limits.

Some insurers also cover part of the cost of repairing or replacing rental equipment that your airline carrier loses, damages or fails to deliver on time.

Conditions may apply with either of these options, so the insurer may require you to report the loss within a certain timeframe or take necessary precautions to avoid a loss. Additionally, the company may exclude certain items from coverage, including passports and other documents.

Rental car damage

Rental car damage coverage is an optional add-on you can purchase along with many base travel insurance policies. This coverage option can reimburse you up to the policy’s coverage limit if your rental car is damaged or stolen during the scheduled rental period.

As with other business travel insurance options, exclusions and conditions may apply. For example, for damages to be covered, the driver at the time of the accident must generally be the same person listed in the rental car agreement.

Note, however, that not all rental car companies accept rental car damage as a suitable form of coverage. Always check with the car rental agency before purchasing this rider.

Who needs business travel insurance?

If you frequently travel for work, business travel insurance can help you cover a portion of the expenses you may incur in the event of a medical emergency, travel delay, cancellation or other covered loss.

This type of policy can benefit those who don’t have business travel coverage through their employer or are self-employed and often travel overseas carrying valuable business equipment. Even if your employer provides travel insurance, you may still want to purchase individual policy to supplement any gaps in their coverage.

How to get business travel insurance

If you think business travel insurance may be right for you, following these steps can help you get the right travel insurance policy and coverage amount.

1. Determine the type and level of coverage you need

Your first step should be to determine the amount of coverage you need for your upcoming trip. To do that, consider whether you already have coverage through a credit card or other form of insurance.

For instance, some of the best business credit cards provide travel insurance and protection if you use the card to book your plane ticket, hotel room or rental vehicle. Depending on your needs and whether your credit card provides primary or secondary coverage, you may not need additional insurance.

Similarly, if you’re traveling domestically, your health insurance policy likely covers medical emergencies that happen across state lines. And your homeowners or renters insurance should cover personal property stored in your vehicle.

If you’re traveling internationally and don’t have other forms of coverage, consider the risks you’re likely to face during your business trip. For example, if you’re traveling with valuable gear, opting for a policy with a high coverage limit for business equipment can protect your pocket and give you peace of mind.

Lastly, if you’re a frequent business traveler, an annual travel insurance plan may be more cost-effective than purchasing separate single-trip plans. Annual plans generally cover all eligible trips you take within the coverage period, as long as each one doesn’t exceed the maximum trip duration outlined by the plan.

2. Compare travel insurance plans from reputable providers

Once you have a good idea of the type and level of coverage you need, start comparing plans from multiple companies. Remember that while some insurers sell dedicated business travel policies, others provide comparable coverage through their standard travel insurance plans.

Regardless of marketing terms, compare policies based on the following:

• Coverage exclusions
• Coverage limits and maximum benefit amounts
• Deductibles you may need to pay before your coverage activates

You may also want to check out travel insurance reviews to get a better sense of a company’s overall offer.

4. Get quotes from multiple travel insurers

To find the coverage you need at the best price, compare travel insurance quotes from multiple companies. Most travel insurers feature quote tools on their websites that can provide accurate price estimates in minutes. All you need to do is input basic personal information and travel details such as:

• Your age and location
• Your travel destination
• The total cost of your trip
• The coverage tier and optional add-ons you want

5. Purchase the policy that best suits your needs and budget

The last step in the process is to compare the insurance offers you’ve gathered and choose the one that best aligns with your requirements. While it may be clear which company offers the most extensive coverage for a reasonable price, you should also be mindful of deductibles and exclusions that could increase your out-of-pocket costs should you need to file a claim.

Is business travel insurance worth it?

The cost of travel insurance can range from 4% to 12% of your total trip cost. That may or may not be a figure you believe is worth paying. The decision comes down to the risks you’re likely to face during your travels and the level of financial responsibility you’re willing to assume in the event of a medical emergency, loss, delay or cancellation.

Summary of Money’s what is business travel insurance

Business travel insurance can provide financial protection for your next business trip by reimbursing you for a portion of the expenses you might incur if you had a medical emergency, travel delay or other covered loss.

While some companies market business insurance as a separate product, these policies generally offer many of the same coverage options as other travel insurance policies. However, some insurers also extend coverage to business equipment and business equipment rentals.

As with any other form of insurance, read your policy details carefully to understand exactly what your plan covers and to what extent.

© Copyright 2024 Money Group, LLC . All Rights Reserved.

This article originally appeared on Money.com and may contain affiliate links for which Money receives compensation. Opinions expressed in this article are the author's alone, not those of a third-party entity, and have not been reviewed, approved, or otherwise endorsed. Offers may be subject to change without notice. For more information, read Money’s full disclaimer .

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Travel Insurance

Cheapest travel insurance of April 2024

Mandy Sleight

Heidi Gollub

“Verified by an expert” means that this article has been thoroughly reviewed and evaluated for accuracy.

Updated 9:52 a.m. UTC April 11, 2024

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WorldTrips is the best cheap travel insurance company of 2024 based on our in-depth analysis of the cheapest travel insurance plans. Its Atlas Journey Preferred and Atlas Journey Premier plans offer affordable travel insurance with high limits for emergency medical and evacuation benefits bundled with good coverage for trip delays, travel inconvenience and missed connections.

Cheapest travel insurance of 2024

Why trust our travel insurance experts

Our team of travel insurance experts analyzes hundreds of insurance products and thousands of data points to help you find the best travel insurance for your next trip. We use a data-driven methodology to determine each rating. Advertisers do not influence our editorial content . You can read more about our methodology below.

• 1,855 coverage details evaluated.
• 567 rates reviewed.
• 5 levels of fact-checking.

Best cheap travel insurance

Top-scoring plans

Average cost, medical limit per person, medical evacuation limit per person, why it’s the best.

WorldTrips tops our rating of the cheapest travel insurance with two plans:

• Atlas Journey Preferred is the cheaper travel insurance plan of the two, with $100,000 per person in emergency medical benefits as secondary coverage and an optional upgrade to primary coverage. It’s also our pick for the best travel insurance for cruises .
• Atlas Journey Premier costs a little more but gives you $150,000 in travel medical insurance with primary coverage . This is a good option if health insurance for international travel is a priority.

Pros and cons

• Atlas Journey Preferred is the cheapest of our 5-star travel insurance plans.
• Atlas Journey Premier offers $150,000 in primary medical coverage.
• Both plans have top-notch $1 million per person in medical evacuation coverage.
• Each plan offers travel inconvenience coverage of $750 per person.
• 12 optional upgrades, including destination wedding and rental car damage and theft.
• No non-medical evacuation coverage.

Cheap travel insurance for cruises

Travel insured.

Top-scoring plan

Travel Insured offers cheap travel insurance for cruises and its Worldwide Trip Protector plan gets 4 stars in our rating of the best cruise travel insurance .

• Worldwide Trip Protector offers $1 million in emergency evacuation coverage per person and a rare $150,000 in non-medical evacuation per person. It also has primary coverage for travel medical insurance benefits, which means you won’t have to file medical claims with your health insurance first.
• Cheap trip insurance for cruises.
• Offers a rare $150,000 for non-medical evacuation.
• $500 per person baggage delay benefit only requires a 3-hour delay.
• Optional rental car damage benefit up to $50,000.
• Missed connection benefit of $500 per person only available for cruises and tours.

Best cheap travel insurance for families

Travelex has the best cheap travel insurance for families because kids age 17 are covered by your policy for free when they’re traveling with you.

• Free coverage for children 17 and under on the same policy.
• $2,000 travel delay coverage per person ($250 per day) after 5 hours.
• Hurricane and weather coverage after a common carrier delay of any amount of time.
• Only $50,000 per person emergency medical coverage.
• Baggage delay coverage is only $200 and requires a 12-hour delay.

Best cheap travel insurance for seniors

Evacuation limit per person

Nationwide has the best cheap travel insurance for seniors — its Prime plan gets 4 stars in our best senior travel insurance rating. However, Nationwide’s Cruise Choice plan ranks higher in our best cheap travel insurance rating.

• Cruise Choice has a $500 per person benefit if a cruise itinerary change causes you to miss a prepaid excursion. It also has a missed connections benefit of $1,500 per person after only a 3-hour delay, for cruises or tours. But note that this coverage is secondary coverage to any compensation provided by a common carrier.
• Coverage for cruise itinerary changes, ship-based mechanical breakdowns and covered shipboard service disruptions.
• Non-medical evacuation benefit of $25,000 per person.
• Baggage loss benefits of $2,500 per person.
• Travel medical coverage is secondary.
• Trip cancellation benefit for losing your job requires three years of continuous employment.
• No “cancel for any reason” (CFAR) upgrade available.
• Missed connection coverage of $1,500 per person is only for tours and cruises, after a 3-hour delay.

Best cheap travel insurance for add-on options

AIG offers the best cheap travel insurance for add-on options because the Travel Guard Preferred plan allows you to customize your policy with a host of optional upgrades.

• Travel Guard Preferred upgrades include “cancel for any reason” (CFAR) coverage , rental vehicle damage coverage and bundles that offer additional benefits for adventure sports, travel inconvenience, quarantine, pets, security and weddings. There’s also a medical bundle that increases the travel medical benefit to $100,000 and emergency evacuation to $1 million.
• Bundle upgrades allow you to customize your affordable travel insurance policy.
• Emergency medical and evacuation limits can be doubled with optional upgrade.
• Base travel insurance policy has relatively low medical limits.
• $300 baggage delay benefit requires a 12-hour delay.
• Optional CFAR upgrade only reimburses up to 50% of trip cost.

Best cheap travel insurance for missed connections

TravelSafe has the best cheap travel insurance for missed connections because coverage is not limited to cruises and tours, as it is with many policies.

• Best-in-class $2,500 per person in missed connection coverage.
• $1 million per person in medical evacuation and $25,000 in non-medical evacuation coverage.
• Generous $2,500 per person baggage and personal items loss benefit.
• Most expensive of the best cheap travel insurance plans.
• No “interruption for any reason” coverage available.
• Weak baggage delay coverage of $250 per person after 12 hours.

Cheapest travel insurance comparison

How much does the cheapest travel insurance cost?

The cheapest travel insurance in our rating is $334. This is for a WorldTrips Atlas Journey Preferred travel insurance plan, based on the average of seven quotes for travelers of various ages to international destinations with a range of trip values.  

Factors that determine travel insurance cost

There are several factors that determine the cost of travel insurance, including:

• Age and number of travelers being insured.
• Trip length.
• Total trip cost.
• The travel insurance plan you choose.
• The travel insurance company.
• Any add-ons, features or upgraded benefits you include in the travel insurance plan.

Expert tip: “In general, travelers can expect to pay anywhere from 4% to 10% of their total prepaid, non-refundable trip costs,” said Suzanne Morrow, CEO of InsureMyTrip.

Is buying the cheapest travel insurance a good idea?

Choosing cheaper travel insurance without paying attention to what a plan covers and excludes could leave you underinsured for your trip. Comparing travel insurance plans side-by-side can help ensure you get enough coverage to protect yourself financially in an emergency for the best price. 

For example, compare these two Travelex travel insurance plans:

• Travel Basic is cheaper but it only provides up to $15,000 for emergency medical expense coverage. You’ll also have to pay extra for coverage for children.
• Travel Select will cost you a bit more but it covers up to $50,000 in medical expenses and includes coverage for kids aged 17 and younger traveling with you. It also offers upgrades such additional medical coverage, “cancel for any reason” (CFAR) coverage and an adventure sports rider that may be a good fit for your trip.

Reasons to consider paying more for travel insurance 

Make sure you understand what you’re giving up if you buy the cheapest travel insurance. Here are a few reasons you may consider paying a little extra for better coverage. 

• Emergency medical. The best travel medical insurance offers primary coverage for emergency medical benefits. Travel insurance with primary coverage can cost more than secondary coverage but will save you from having to file a claim with your health insurance company before filing a travel insurance claim.
• Emergency evacuation. If you’re traveling to a remote location or planning a boat excursion on your trip, look at travel insurance with a high medical evacuation insurance limit. If you are injured while traveling, transportation to the nearest adequate medical facility could cost in the tens to hundreds of thousands. It may make sense to pay more for travel insurance with robust emergency evacuation coverage. 
• Flexibility. To maximize your trip flexibility, you might consider upgrading your travel insurance to “ cancel for any reason” (CFAR) coverage . This will increase the cost of your travel insurance but allow you to cancel your trip for any reason — not just those listed in your policy. The catch is that you’ll need to cancel at least 48 hours before your trip and will only be reimbursed 50% or 75% of your trip expenses, depending on the plan. 
• Upgrades. Many travel insurance plans have optional extras like car rental collision and adventure sports (which may otherwise be excluded from coverage). These will cost you extra but may give you the coverage you need. 

How to find the cheapest travel insurance

The best way to find the cheapest travel insurance is to determine what you’re looking for in a travel insurance policy and compare plans that meet your needs.

 “Travel insurance isn’t one-size-fits-all. Every trip is different, and every traveler has different needs, wants and concerns. This is why comparison is key,” said Morrow.

Consider the following factors when comparing cheap travel insurance plans.

• How often you’re traveling. A single-trip policy may be the most cost-effective if you’re only going on a single trip this year. But a multi-trip travel insurance plan may be cheaper if you’re going on multiple international trips throughout the year. Annual travel insurance policies cover you for a whole year as long as each trip doesn’t exceed a certain number of days, usually 30 to 90 days. 
• Credit card has travel insurance benefits. The best credit cards offer perks and benefits, and many offer travel insurance-specific benefits. The coverage types and benefit limits can vary, and you must put the entire trip cost on the credit card to use the coverage. If your trip costs more than the coverage limit on your card, you can supplement the rest with a cheaper travel insurance plan.
• The coverage you need. When looking for the best travel insurance option at the most affordable price, only buy extras and upgrades you really need. A basic plan may only provide up to $500 in baggage insurance, but if you only plan to take $300 worth of clothes and accessories, you don’t need to pay more for higher coverage limits.

Is cheap travel insurance worth it?

Cheap travel insurance can be worth it, as long as you understand the plan limitations and exclusions. Taking the time to read your policy, especially the fine print, well before your trip can ensure there won’t be any surprises about what’s covered once your journey begins.

“If a traveler is looking for coverage for travel delays, cancellations, interruptions, medical and baggage — a comprehensive travel insurance policy will provide the most bang for their buck,” said Morrow. But if you’re on a tight budget and are only worried about emergency medical care and evacuation coverage while traveling abroad, stand-alone options are cheaper.

Before buying travel insurance, you should also consider what your health insurance will cover. 

“Most domestic health insurance plans, including Medicare, will not cover medical bills abroad,” said Morrow. Even if you’re staying stateside, you may find value in an affordable travel insurance plan with medical coverage if you have a high-deductible health plan (HDHP). 

A cheap travel insurance plan is better than none at all if you end up in a situation that would have covered some or all of your prepaid, nonrefundable trip expenses.

Methodology

Our insurance experts reviewed 1,855 coverage details and 567 rates to determine the best travel insurance . From those top-scoring travel insurance plans, we chose the most affordable for our rating of the cheapest travel insurance.

Insurers could score up to 100 points based on the following factors:

• Cost: 40 points. We scored the average cost of each travel insurance policy for a variety of trips and traveler profiles.
• Medical expenses: 10 points. We scored travel medical insurance by the coverage amount available. Travel insurance policies with emergency medical expense benefits of $250,000 or more per person were given the highest score of 10 points.
• Medical evacuation: 10 points. We scored each plan’s emergency medical evacuation coverage by coverage amount. Travel insurance policies with medical evacuation expense benefits of $500,000 or more per person were given the highest score of 10 points.
• Pre-existing medical condition exclusion waiver: 10 points. We gave full points to travel insurance policies that cover pre-existing medical conditions if certain conditions are met.
• Missed connection: 10 points. Travel insurance plans with missed connection benefits of $1,000 per person or more received full points.
• “Cancel for any reason” upgrade: 5 points. We gave points to travel insurance plans with optional “cancel for any reason” coverage that reimburses up to 75%.
• Travel delay required waiting time: 5 points. We gave 5 points to travel insurance policies with travel delay benefits that kick in after a delay of 6 hours or less.
• Cancel for work reasons: 5 points. If a travel insurance plan allows you to cancel your trip for work reasons, such as your boss requiring you to stay and work, we gave it 5 points.
• Hurricane and severe weather: 5 points. Travel insurance plans that have a required waiting period for hurricane and weather coverage of 12 hours or less received 5 points.

Some travel insurance companies may offer plans with additional benefits or lower prices than the plans that scored the highest, so make sure to compare travel insurance quotes to see your full range of options.

Cheapest travel insurance FAQs

When buying travel insurance, cheapest is not always the best. The most affordable travel insurance plans typically offer fewer coverages with lower policy limits and few or no optional upgrades. Add up your total nonrefundable trip costs and compare travel insurance plans and available features that cover your travel expenses. This strategy can help you find the cheapest travel insurance policy that best protects you from financial loss if an unforeseen circumstance arises.

Get the coverage you need: Best travel insurance of 2024

According to our analysis, WorldTrips , Travel Insured International and Travelex offer the best cheap travel insurance. Policy coverage types and limits can vary by each travel insurance provider, so the best way to get the cheapest travel insurance plan is to compare several policies and companies to find the right fit for your budget.

A good rate for travel insurance depends on your budget and coverage needs. The most comprehensive travel insurance plan is usually not the cheapest. But cheap trip insurance may not have enough coverage or the types of coverage you want. Comparing different levels of coverage and how much they cost can help you find the best cheap insurance for travel. 

The average cost of travel insurance is between 5% to 6% of your total travel expenses for one trip, according to our analysis of rates. However, you may find cheaper travel insurance if you opt for a plan with fewer benefits or lower coverage limits. How much you pay for travel insurance will also depend on the number of travelers covered, their ages, the length of the trip and any upgrades you add to your plan.

Travel insurance covers nonrefundable, prepaid trip costs — up to the policy coverage limits — when your trip is interrupted or canceled for a covered reason outlined in your plan documents. Even the cheapest travel insurance policies usually provide coverage for:

• Medical emergencies.
• Trip delays.
• Trip interruption.
• Trip cancellation.
• Lost, stolen or damaged luggage.

However, if you’re looking to save on travel insurance, you can shop for a policy that only has travel medical insurance and does not include benefits for trip cancellation .

Even when you buy cheap travel insurance, you can often use upgrade options to customize your policy to meet your specific needs. 

Some common travel insurance add-ons you may want to consider include:

• Rental car damage coverage. 
• Medical bundle.
• Security bundle.
• Accidental death and dismemberment coverage.
• Adventure sports bundle.
• Pet bundle.
• Wedding bundle.
• “Cancel for work reasons” coverage.
• “Interruption for any reason” (IFAR) coverage.
• “Cancel for any reason” (CFAR) coverage .

Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.

Blueprint has an advertiser disclosure policy . The opinions, analyses, reviews or recommendations expressed in this article are those of the Blueprint editorial staff alone. Blueprint adheres to strict editorial integrity standards. The information is accurate as of the publish date, but always check the provider’s website for the most current information.

Mandy is an insurance writer who has been creating online content since 2018. Before becoming a full-time freelance writer, Mandy spent 15 years working as an insurance agent. Her work has been published in Bankrate, MoneyGeek, The Insurance Bulletin, U.S. News and more.

Heidi Gollub is the USA TODAY Blueprint managing editor of insurance. She was previously lead editor of insurance at Forbes Advisor and led the insurance team at U.S. News & World Report as assistant managing editor of 360 Reviews. Heidi has an MBA from Emporia State University and is a licensed property and casualty insurance expert.

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