Are you wondering what type of insurance policy is best for driving school? If YES, here are 6 best insurance policies for driving school in 2023. If you are thinking of starting a driving school, then part of what you must not fail to budget for is insurance policy cover. Insurance provides you with protection from any unexpected incidents that your driving instructors or your students could be liable for, which could result in financial difficulties for you and your company.
No one wants to be at a disadvantage in business because of not having the right insurance policy cover or at worst not having any insurance policy cover at all. Having said that, there are key insurance policy covers that you must have for your driving school, and here are some of them.
What is the Best Insurance for Driving School in 2023?
Table of Content
- General Liability Insurance
- Business Auto Insurance
- Medical Payments Insurance
- Physical Damage Insurance
- Uninsured or Underinsured Motorist
- Workers Compensation
- How Much Does It Cost To Get Insurance Policies for Driving School?
General Liability Insurance
General liability insurance is required by law in most states for all businesses. This insurance protects other drivers from suffering financial losses when the driver of your vehicle causes an accident. Please also note that this insurance helps pay for injuries and damages to other people when your driving school vehicle is at fault for an auto accident. This business coverage comes in two specific pieces: Bodily injuries and property damages.
Bodily Injury: note that when your driving school vehicle causes an auto accident, the bodily injury portion of your liability insurance caters to the cost of medical care for the victims involved. This coverage pays the medical bills and other expenses that are created for the other drivers and passengers, not in your vehicle.
This insurance will also cover the cost of emergency and ongoing medical care. It also pays for the expenses incurred for rehabilitation, physical therapy, and recuperation. It goes further to cater to the victims for pain and suffering, and if applicable it pays for lost wages due to time off work. When accidents cause fatalities, this coverage also pays for the victim’s funeral expenses.
Property Damage: If your driving school vehicle is at fault for an auto accident, the property damages portion of your liability insurance will cater to the cost of repairs that the other vehicles need.
Business Auto Insurance
Business or commercial auto insurance covers the general requirements that are germane to running a driving school business, including those mentioned above such as general liability. Auto insurance protects your company against any medical, hospital, or emergency transportation expenses that should arise out of injuries sustained during an accident or other mishap for which your company is liable.
Medical Payments Insurance
It is important to note that this insurance protects your driving instructors and all the students who are in the vehicle at the time of an auto accident. If anyone is injured, irrespective of who is at fault for the accident, medical payments coverage will cater for the associated medical bills. It is advisable you call and speak with a licensed insurance agent to determine if it is a viable option for your driving school insurance needs.
Physical Damage Insurance
This is the insurance coverage that protects your vehicle directly. If your driving school vehicle is damaged or destroyed due to unexpected events and perils, this coverage will ultimately cater to the repairs and replacement of your vehicle. This is quite crucial for driving school vehicles that are not fully paid for, and those that are leased, because it provides the highest level of loss protection your company can get.
Comprehensive Physical Damage: This damage protects your driving school vehicle against a wide variety of potential day-to-day risks. It also protects you against theft of your vehicle; break in, vandalism, damages caused by natural events such as a hail storm, and more. This damage protection covers most damages that are not caused by overturning or by collision.
Collision Damage: Collision damages also provide you with insurance for those times when your driving school vehicle does get damaged in a roll-over or collision. If, for instance, your vehicle backs into a mailbox while picking up customers, your collision damages protection will pay for the cost of repairs.
Specified Peril (CAC): This specified peril insurance provides you with protection against only those events and risks that are specifically listed on your driving school vehicle insurance policy. It is also known as CAC, which is short for Fire and Theft with Combined Additional Coverage.
Uninsured or Underinsured Motorist
According to experts, this insurance is ideal for your driving school vehicle transit service, because it protects you from suffering financial hardships that can be caused by other people. If another driver causes an accident with your driving school vehicle and they do not have insurance – or they don’t have enough insurance – this coverage caters to the cost of repairs to your vehicle and pays for the bodily injuries of your driver and passengers.
Even though general liability insurance protects your business from accidents, it usually doesn’t cover damages that you had the power to avoid. It simply means that a lot of workplace injuries are not covered. In a worst-case scenario, an employee could litigate for the injuries they incurred in the workplace, and that is where workers comp insurance is the most useful.
Note that if an employee ends up with medical expenses from a workplace accident, workers’ comp insurance can pay them for the time they were out of work, as well as their medical costs. In return, the employee forgoes the right to sue the employer.
Have it in mind that this is a mutually beneficial solution, and it is usually the easiest and quickest one as well. Without workers comp in place, you might end up with a month-long legal battle that will drain the wallets of both business and defendant.
Other Commercial Auto Coverage You May Want To Consider Include:
Rental: Rental insurance pays for the cost of renting a temporary replacement vehicle when yours is down for repairs due to an auto accident.
Towing: If your driving school vehicle is damaged extensively in an auto accident it will need to be towed to a repair place of your choosing. Towing insurance will pay for that expense.
Accessories: Driving school insurance should include accessories coverage so that you do not have to pay for repairing or replacing expensive equipment you have installed. Accessories coverage can be added to your business auto insurance to protect you from losses of devices such as GPS navigation units, communications radios, and mileage meters.
How Much Does It Cost To Get Insurance Policies for Driving School?
Your driving school insurance cost is the sum of all your yearly premiums. However, businesses with similar insurance needs can end up paying different rates because insurers look at a variety of factors to determine premiums.
General Liability Insurance
- Coverage Amount: $2 million
- Annual Premiums: $350 to $800
Physical Damage Insurance
- Coverage Amount: $10,000 to $100,000
- Annual Premiums: $380 to $1,000
Commercial Auto Insurance
- Coverage Amount: $1 million
- Annual Premiums: $1,500 to $4,200
Workers’ Compensation Insurance
- Coverage Amount: $500,000
- Annual Premiums: $2,000 to $4,200
- Coverage Amount: $1 million
- Annual Premiums: $400 to $1,500
How to Get the Best Insurance Policies for a Driving School
There are various aspects to driving school insurance, which makes sense, as there are a lot of factors that put the driving school at risk. Like other related businesses, driving school providers have to consider vehicle damage, bodily injuries to driving instructors and students in the event of a collision, and third party damage to properties or persons.
Driving school insurance also includes general liability coverage, another standard type of coverage for transportation companies. Below are things to consider when buying insurance for your driving school:
Know Your Risks
Have it in mind that insurance for your driving school always needs to include liability coverage for the harm you cause others. However, only getting this third – party coverage means damage to your business or injuries to you and your customers are not included, so you may want to add coverage for your first – party risks. A good insurance agent can help identify your greatest risk exposures.
Go for Value but Never Underinsure
You don’t want to be underinsured, but you also want to avoid buying unnecessary coverage. If a basic insurance policy is not enough to cover your risks, don’t hesitate to add endorsements or look for broader coverage. As long as you can afford it, the highest amount of insurance coverage available is the best option when dealing with sensitive businesses. Some of the most common mistakes driving school owners make when getting commercial auto insurance include:
- Not fully insuring their driving school vehicle
- Not purchasing an auto liability policy
- Not buying enough insurance
- Not opting into uninsured and underinsured motorist coverage
- Not electing to purchase comprehensive coverage
Get an Agent Who Knows the Industry
Agreeably, general liability insurance is not industry – specific, but driving school owners still need to consider their industry and sector when shopping for coverage. An agent who has experience in the business can anticipate your risks and their impacts. That way, they can help you buy the right coverage with the appropriate limits for your particular exposures.
Add All Necessary Information on the Application
Remember that the information provided on your insurance application tells your agent, broker, or underwriter how to best cover your specific risks, so you want to be as accurate and honest as possible. It does not only help protect your business, but it may also prevent you from being denied coverage if you file a claim.
When shopping for driving school insurance, always ensure to look for an insurance company with a track record. Some insurance companies require that your driving school has been in business for a certain number of years before they will provide coverage.
Howbeit, ensure to consult an insurance agent or broker whom you trust to provide the best advice about the coverage you need. Legal requirements vary from state to state, and a local insurance advisor is sure to understand local regulations.