Can an employer require proof of auto insurance?

An employer can require proof of auto insurance for a variety of reasons. If you're going to drive your vehicle for work, you will need to carry the minimum requirements for auto insurance recommended by your employer, which may be higher than state requirements. If you use your car regularly for work, you may need to purchase business use auto insurance.

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Sara Routhier, Managing Editor of Features and Outreach, has professional experience as an educator, SEO specialist, and content marketer. She has over five years of experience in the insurance industry. As a researcher, data nerd, writer, and editor she strives to curate educational, enlightening articles that provide you with the must-know facts and best-kept secrets within the overwhelming worl...

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Cynthia Lanctot is an insurance professional with ten years of industry experience. Cynthia is licensed in several states, and holds an associate in claims law, as well as a bachelor’s degree in English. Cynthia’s experience includes the New England and Northeast states. She currently works as a liability claims professional and an occasional online contributor.

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Reviewed by Cynthia Lanctot
Licensed Agent

UPDATED: Jan 22, 2021

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A Concise Overview

  • You may have to show proof of auto insurance to your employer if you drive for a company car.
  • Employers may require higher coverage limits.
  • Companies with more than three vehicles should carry commercial auto insurance.

You just got a new job, and your employer asked for proof of car insurance. Can an employer require proof of auto insurance? Jobs that require you to drive a company car or your vehicle for business will ask for proof of auto insurance.

Most employers that require you to drive have commercial auto insurance. However, some companies may not carry an elaborate car insurance policy.

If you need to buy auto insurance, you can use our free online quote tool to compare rates now. Enter your ZIP code above to compare auto insurance quotes and obtain proof of car insurance to show to your employer.

Can employers require proof of auto insurance?

The answer is yes. Jobs with a company car are known for asking for proof of auto insurance. This reassures the employer that you’re financially responsible if you get into an accident in your vehicle while on the clock.

When do employers ask for proof of auto insurance?

If you’re going to use your vehicle for business use, employers could ask you for proof of car insurance before you begin work. Some employers may give you a few weeks if you’re transitioning from one company to the next.

What is proof of auto insurance?

Proof of auto insurance can be an insurance card, a certificate that shows you’re insured, or a copy of your auto insurance statement.

In most U.S. states, you must carry proof of car insurance when applying for vehicle registration. Some states allow electronic proof of insurance, according to Claims Journal, but your employer may require a paper copy.

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Why do employers ask for proof of auto insurance?

Proof of car insurance established trust and shows your employer that you have the minimum car insurance requirements. If you’re going to drive your vehicle for business use, they’ll need to know you are financially responsible.

Some companies may ask you to carry higher coverage limits than the state minimum. Higher coverage limits mean you’ll have to pay more money for auto insurance.

What is the business use of personal vehicle insurance?

When you’re using a personal vehicle for work, that’s considered business use of personal auto insurance. Employers should have standards and practice guides on auto insurance for employees to follow.

If you have insufficient coverage limits, your employer will alert you. Most employers have a set minimum requirement for employees, so you shouldn’t be left to wonder what you need. Therefore, you may have to verify your auto insurance status every six months.

Why Companies Should Consider Commercial Auto Insurance

Employers with three or more company vehicles need commercial car insurance. Commercial auto insurance is also known as fleet insurance and provides auto insurance for all company vehicles.

Companies can pay an annual rate of $1,000 per vehicle. Of course, higher coverage limits and perks will cost more.

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Can an employer require proof of auto insurance? The Bottom Line

Your employer can ask for proof of auto insurance to ensure that you’re financially responsible when driving for business purposes. Also, proof of car insurance may be required to see if you’re qualified to drive an employer’s vehicle.

It could get complicated if your employer requires higher coverage limits. You can offset costs by shopping around for cheap auto insurance coverages.

If you don’t have a policy and your employer requires proof of auto insurance, compare multiple auto insurance companies using our free online quote tool by entering your ZIP code below. You can buy car insurance in less than 15 minutes.

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