Do Realtors need special auto insurance? The answer is yes and no. Realtors are typically self employed and use their personal auto insurance to either drive around customers or meet customers at show homes are buildings for sale.
Realtors should either have a commercial auto insurance policy or a personal auto policy with a business endorsement. Every situation is different and no one solution fits all.
There are several items to consider when deciding which avenue may be best:
• Is the Realtor a Sole Proprietor, LLC or Incorporated?
• Are the vehicles being used for business under the individual realtor name or the business name?
• Is the realtor a one-person operation, a full office or somewhere in between?
• Does office staff or employee Realtors show properties or run errands
Once you decide on what kind of auto insurance policy best suites your needs its time to review the minimum liability coverage you should select. Its highly recommended to have at least $500,000 liability limits. Remember this is your coverage in case you’re fault and someone else gets hurt or property is damaged including another car. Liability is the one the least expensive coverages you can increase. Typically, it only cost $10-$20 per month to increase your liability to better limits.
In addition to $500,000 minimum limits its highly recommended to have at least a $1,000,000 umbrella. Most personal umbrella’s cost around $200 per year. In addition to extending an additional $1,000,000 in liability a non-forming umbrella policy can also cover gaps in coverage from your auto and homeowner policy.
A personal auto insurance policy with a business use endorsement will work for several scenarios. However, you should discuss your specific situation with an Insurance Agent who has a strong commercial insurance background to ensure you select the right policy and coverage.
Joseph Gutierrez, CIC