Compare cheap business car insurance

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Cheap business car insurance that also gives you the protection you need can be tough to find.

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  • What is business car insurance?
  • FAQs
  • Useful links
  • Customer reviews

Jump to section

  • What is business car insurance?
  • FAQs
  • Useful links
  • Customer reviews

Why compare business car insurance?

Comparing policies lets you see what different insurers are offering and at what price. Being able to compare multiple quotes all in one place can also give you a better idea of the business car insurance market overall – helping you identify what represents value for money.

At mustard.co.uk, you can search and compare business car insurance quotes from more than 50 leading insurers giving you access to some of the most competitive deals around. 

Business car insurance FAQs

What is business car insurance?

Business car insurance covers you to drive for work purposes – whether that’s driving to different offices or visiting clients. 

When you search for business car insurance, bear in mind that policies can be more expensive than standard car cover. That’s because using your car for work often means you’re out and about a lot more which can increase the risk of an accident occurring.

Do I need business car insurance?

If you drive to lots of different places as part of your job, then you’re likely to need business car insurance. Standard policies typically only cover you to drive your car for social and domestic purposes and to a single place of work (these are known as classes of use). 

Crucially, standard car cover policies don’t allow you to drive to multiple places of work so if you regularly travel between regional offices, drive colleagues to meetings or visit clients, you’ll need business car insurance

What does business car insurance cover?

Like other types of car insurance, you can choose from one of three levels of cover:

  • Third-party only – compensates other people for injury and damage you cause.
  • Third-party, fire and theft – includes third-party only cover and will also compensate you if your car is stolen or damaged by fire
  • Comprehensive – includes third-party, fire and theft and will also cover the cost of damage to your own car if you’re involved in an accident. 

You’ll also need to specify the business class of use:

  • Class 1 – covers you to drive to multiple places of work or to visit clients, for example if you were an area manager and travelled to different sites and branches. 
  • Class 2 – includes class 1 cover and lets you add a named driver which usually has to be a colleague at the same firm as you. 
  • Class 3 – aimed at heavy business users who cover vast numbers of miles, for example if you’re a salesperson. Be aware that if you are in sales, class 3 cover only lets you carry product samples (not actual merchandise). If you’re transporting goods in exchange for money you’ll need a different type of policy altogether.

Business classes of use should also allow you to drive your car for social and domestic purposes too but always read your insurer’s terms and conditions to be on the safe side.

Is business car insurance the same as commercial car cover?

Confusingly, the terms business car insurance and commercial car insurance are often used as one and the same, but they cover quite different things:

  • Business car insurance covers you to drive to work – visiting different sites or clients.
  • Commercial car insurance covers you to use your car for work – delivering goods or services to customers, for example couriers.

It’s a subtle difference but an important one. Driving for reasons not covered under your policies class of use can invalidate your policy and means your insurer can refuse to pay out. 

Can I get temporary business car insurance?

Yes, if you only drive to multiple work locations at certain times of the year or every now and again, temporary or short-term car insurance is another option. 

Temporary business car insurance can be more cost-effective and with policies offering cover for as little as a day up to a few weeks, they’re flexible too. 

How much is business car insurance in the UK?

Like other types of car cover, the cost of business car insurance really depends on your own circumstances and insurers will consider numerous factors, including:

  • Your job
  • The number of miles you cover
  • The driving history of any named drivers
  • The class of use you need (class 1,2 or 3).

Using this information insurers will calculate a premium based on the risk of a claim being made. For example, if you work in sales, cover thousands of miles a year and opt for class 3, your policy is likely to cost more compared to an accountant who travels between two offices and only needs class 1.

Do I need business car insurance if I have a company car?

If your employer has organised a company car for you, they’ll usually arrange cover on your behalf. Always check that this is the case though, just to be sure. 

Remember that if your company car isn’t available for whatever reason and you need to use your own for work purposes, you’ll need to arrange business car insurance while you use it. 

If you’re looking for a business car insurance quote, it’s easy when you compare with us at mustard.co.uk. You can search online or if you’d prefer to speak to a friendly, expert advisor, call 0330 022 8814. 

Compare cheap business car insurance