Do realtors need commercial auto insurance? Driving clients in Washington
You put clients in your car several times a week. That makes the car part of the business — and the question is whether your policy knows it.
The short answer
Most Washington real estate agents who drive clients in their own car do not need a commercial auto policy. They need a personal policy that is rated for business use, because showing homes is business use, and the carrier prices and covers the car according to how it is used.
A commercial auto policy becomes necessary when the vehicle is owned by an LLC or corporation, when employees or assistants drive it, or when the use goes beyond what a personal policy will rate. Team leads and brokerages should also look at hired and non-owned auto coverage for agents who drive their own cars.
The bigger gap is usually the limit, not the policy type. Washington's minimum is 25/50/10: $25,000 per injured person, $50,000 per accident and $10,000 for property. With three clients in the car, that minimum can be exhausted by a single accident.
Washington Legislature — RCW 46.29.090
Washington Legislature — RCW 46.29.090
IRS — 2026 standard mileage rate
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Is driving clients to showings considered business use?
For insurance purposes, yes. Carriers classify each vehicle by how it is used, and driving clients to showings, meeting sellers and running to inspections is business use. The classification affects the price and how the carrier views the vehicle, so it should match what the car actually does.
How carriers classify a car's use
| Use class | Typical meaning | Fits a realtor? |
|---|---|---|
| Pleasure | Personal errands, no regular commute | No |
| Commute | Driving to and from a fixed workplace | Not on its own |
| Business | Driving as part of the work itself | Yes |
What happens if the policy says commute
Use is information the carrier relied on to price the policy. If it is wrong, the conversation after a claim becomes harder than it needs to be. The fix is a phone call now, and the difference in premium is usually smaller than agents expect.
When does a realtor need a commercial auto policy?
When the vehicle stops looking personal. The common triggers are ownership by a company, employees or assistants driving it, and use that a personal policy will not rate. For a solo agent in a personal car, a business-use personal policy is the normal answer.
- The car is titled to your LLC, corporation or team.
- An assistant, showing agent or employee drives it regularly.
- The vehicle carries equipment or signage as its main purpose.
- Your carrier will not rate business use on a personal policy.
What liability limits make sense when clients ride with you?
Higher than the minimum, by a wide margin. Washington's 25/50/10 was designed as a floor for ordinary drivers. An agent with passengers several times a week faces accidents with more people involved, and medical costs that exceed those numbers quickly.
| Limit | Per person | Per accident | Property |
|---|---|---|---|
| Washington minimum | $25,000 | $50,000 | $10,000 |
| A common choice for agents | $100,000 | $300,000 | $100,000 |
| With an umbrella policy | Adds $1 million or more on top |
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Coverage that matters when you carry passengers
Two coverages protect the people in your car regardless of who caused the accident. Personal injury protection pays medical bills and some lost wages for you and your passengers. Uninsured and underinsured motorist coverage pays when the other driver has no insurance or too little.
Why uninsured motorist coverage matters for agents
If the other driver has no insurance, your passengers' injuries still need to be paid by someone. Uninsured motorist coverage on your own policy is often the only source, and it is inexpensive relative to what it protects.
Teams, assistants and brokerage-owned cars
Team leads and brokerages have an exposure solo agents do not: people driving for the business in cars the business does not own. Hired and non-owned auto coverage protects the business in that case. It does not replace each driver's own policy; it sits on top of it.
A note on mileage
For 2026, the IRS business standard mileage rate is 72.5 cents per mile, and many agents track miles driven for work. That is a tax matter for your accountant, not an insurance one, but the same mileage log is useful evidence of how the car is used when you set up the policy.
What we need to quote it
Your current declarations page, the vehicles and drivers, and a sentence on how you use the car for work. We quote it with business use across six carriers. More on car insurance in Washington and on our page for realtors and loan officers; for the rest of your business, see general liability for agents and benefits for independent agents.
Frequently asked questions
Does my personal auto policy cover me while showing houses?
Often yes, if the carrier knows how you use the car and rated it for business use. The risk is a policy rated for pleasure or commuting while the car is used daily for work. Tell your carrier what you do and check how the policy lists the vehicle's use.
Do I need to tell my insurer I'm a real estate agent?
Yes. Use is a rating factor, and answering it incorrectly can cause problems when a claim is filed. Business use may cost somewhat more, but it is the accurate classification for an agent who drives to showings.
What is hired and non-owned auto coverage?
Liability coverage for a business when employees or contractors use their own cars, or rented ones, for business errands. It protects the brokerage or team, not the driver's own car, and it sits on top of the driver's personal policy.
What liability limits should a realtor carry?
Well above Washington's minimum of 25/50/10. An agent who drives clients regularly is exposed to injuries to several people at once. Many agents choose 100/300/100 or higher, often with an umbrella policy on top.
When does a realtor need a commercial auto policy?
When the vehicle is owned by a company or LLC, when employees drive it, or when the use goes beyond what a personal policy will rate. A sole agent driving a personal car to showings is usually handled with business use on a personal policy.
Keep reading
Sources
- Washington State Legislature — RCW 46.29.090, Motor vehicle liability policy — the 25/50/10 minimum.
- Internal Revenue Service — IRS sets 2026 business standard mileage rate at 72.5 cents per mile.
- U.S. Small Business Administration — Get business insurance.
This article is general information about insurance in the state of Washington. It is not legal advice and it is not an offer of coverage. Whether a policy covers a given loss depends on its own wording, its endorsements and its exclusions; read yours, or send it to us and we will read it with you. Anel Galicia is a licensed insurance producer in the state of Washington.