Real Estate Agent Car Insurance Requirement

4 Replies

Hi BP!

I have recently gotten my real estate license in DC and I am about to sign an independent contractor agreement with a commercial broker. One of the covenants on the agreement states that, for car insurance, I must have: $100,000 of liability for each person, $300,000 for each accident, $50,000 of property damage limits, and add the company "as an additional insured." 

Is there any way around this here in DC? It would cost me more than my car is worth with this kind of coverage because of my age and an incident on my driving record a few years ago. Any advice?

(Also, can a DC agent work for 2 brokers? ex. 1 residential and 1 commercial?) Thanks in advance and sorry for so many questions in one post.

1 broker only. Plenty of the larger residential brokerages will also allow you to do commercial. I do both.

There are brokerages that don't have a requirement for car insurance...however if you get into an accident, and the insurance company does a quick Google search and sees you are an agent and do not have your car insured for business use, they will not pay any claims against you.

Originally posted by @Russell Brazil :

1 broker only. Plenty of the larger residential brokerages will also allow you to do commercial. I do both.

There are brokerages that don't have a requirement for car insurance...however if you get into an accident, and the insurance company does a quick Google search and sees you are an agent and do not have your car insured for business use, they will not pay any claims against you.

 Thanks for your response! It seems there may be a slight chance it will not work out with this broker. What does the process of switching brokers look like?

@Kevin Feyjoo

Have you spoken to the broker about the situation? They might have some advise on what can done or other suggestions. As an agent TBH it would be pretty reckless not to carry this type of coverage. As a licensed P&C agent I can have the knowledge to probably guess that you are probably carrying state mins? This is just an assumption of course, so if you are not then my apologies. 

You really do not want to run the risk of getting something happening and you either A) get by under the radar of not driving for business purposes, but not having enough coverage to cover other's injuries or B) Not having commercial insurance on your vehicle and found out that you are driving for business purpose, thus no pay out. 

I guarantee that both situations would cost you more out of pocket than just paying the premiums. Granted I do not know your financial situation and it could be just not possible to pay it right now, but insurance is always a waste till you actually need it; after that it's priceless. 

This would just come with the territory of your profession.

This might not have been helpful for dealing with the situation, but as someone who hears too many horror stories about inadequate auto insurance, I just want to hopefully have you rethink about the pros and cons.

Good luck!

Nick

Originally posted by @Nicholas Covington :

@Kevin Feyjoo

Have you spoken to the broker about the situation? They might have some advise on what can done or other suggestions. As an agent TBH it would be pretty reckless not to carry this type of coverage. As a licensed P&C agent I can have the knowledge to probably guess that you are probably carrying state mins? This is just an assumption of course, so if you are not then my apologies. 

You really do not want to run the risk of getting something happening and you either A) get by under the radar of not driving for business purposes, but not having enough coverage to cover other's injuries or B) Not having commercial insurance on your vehicle and found out that you are driving for business purpose, thus no pay out. 

I guarantee that both situations would cost you more out of pocket than just paying the premiums. Granted I do not know your financial situation and it could be just not possible to pay it right now, but insurance is always a waste till you actually need it; after that it's priceless. 

This would just come with the territory of your profession.

This might not have been helpful for dealing with the situation, but as someone who hears too many horror stories about inadequate auto insurance, I just want to hopefully have you rethink about the pros and cons.

Good luck!

Nick

 The vehicle is actually primarily insured under my father because of the high premiums for drivers under 25. It does not have the bare minimum (even though it was an option because the car was paid for in cash) but adding those options to the policy would make it too expensive for me at the moment. I appreciate any advice and yours was helpful. 

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