Compare cheap business and commercial car insurance

Quotes take around 5 mins

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

Thanks to our Cheapest Price Guarantee*, we promise to beat any other online quote so you can be confident about getting the best deal around.

Jump to section

  • Do I need business cover?
  • What does a business policy cover?
  • Choosing business or commercial cover
  • Temporary business cover
  • Company cars
  • What’s commercial car insurance?
  • FAQs
  • Useful links
  • Customer reviews

Jump to section

  • Do I need business cover?
  • What does a business policy cover?
  • Choosing business or commercial cover
  • Temporary business cover
  • Company cars
  • What’s commercial car insurance?
  • FAQs
  • Useful links
  • Customer reviews

Why compare business car insurance?

At mustard.co.uk, you can search and compare business car insurance and commercial car insurance quotes, from 70 leading UK providers, giving you access to some of the most competitive deals around. 

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 market overall – helping you identify what represents value for money.

What is business car insurance?

Business car insurance is aimed at anyone who uses their car for work. This includes travelling to regional offices, driving colleagues to meetings or visiting clients at different locations. 

If you do use your car for business reasons but only have standard car insurance, you might not be covered in the event of an accident. That’s because standard policies only insure you to drive for social and domestic reasons including to a single place of work.

Is commercial car insurance the same as business car cover?

Technically, they’re not the same. Car insurance for business use covers you to drive your car to and from different work locations — in other words, it’s a means of transport.

On the other hand, commercial car insurance covers your car if it’s essential to your job — for example, if you’re a taxi driver or courier. In this sense, your car is integral to what you do and you couldn’t work without it (rather than it just getting you from A to B). 

What can be confusing is that both terms are often used interchangeably. Some insurers will treat commercial car cover as a type of business car insurance whereas others will consider it a totally different type of insurance product.

It’s crucial to make sure that the type of policy you buy covers the way you use your car (known as the ‘class of use’). If you don’t have appropriate cover, your policy could be invalid which means your insurer can refuse to pay out.

How much is business car insurance?

Like other types of car cover, the cost of car insurance for business use 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 1,2,3 or commercial cover)

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.

How can I get cheap business car insurance?

Your policy should always reflect your needs, but there are several ways to keep premiums as low as possible, including:

  • Paying for your policy annually — installments might help you spread the cost but they’ll also include interest and bump up the overall price.
  • Choosing the right car — cars in lower insurance groups generally cost less to insure.
  • Keeping your car safe — minimising the risk of theft or vandalism can shave a few pounds off your premium. If you don’t have a garage, you could invest in an alarm or immobiliser
  • Increasing your voluntary excess — this can lower your overall premium but whatever the amount is, it needs to be affordable because a claim can’t go ahead until you’ve paid it. 

Complete our simple online form today and start comparing with mustard.co.uk

Business car insurance FAQs

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.
  • Commercial — covers your car if it’s essential to your job (for example, taxi services). Remember that some insurers class this as a type of business use while others will offer this as a separate type of insurance product.

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.

Do I need business car insurance or commercial car cover?

If you regularly drive to different locations for work but your car is simply a means of transport, then business car insurance may be the most suitable type of policy.

If you need your car in order to do your job (for example if delivering takeaways) then commercial car insurance is likely to be the best policy for you. 

Confusingly, business and commercial car insurance are often used as one and the same, but they sometimes cover quite different things. For some insurers, commercial car insurance is simply another type of business car cover but for others the definition is distinct and it’s a different type of insurance product. 

If you’re in any doubt about what insurance you need, always speak to your insurer who’ll be able to give you specific advice based on your unique circumstances. 

 

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. 

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 appropriate business car insurance while you use it. 

To search for car cover and find a policy that suits you, simply fill in our online form. Alternatively, you can speak to a friendly, expert advisor on 0330 022 8814.

What is commercial car insurance?

Although both are suited for business use, commercial car insurance is designed for drivers whose cars are a vital part of their job — for example, couriers and taxi drivers.

It’s crucial to make sure that the type of policy you buy covers the way you use your car (known as the ‘class of use’). If you don’t have appropriate cover, your policy could be invalid which means your insurer can refuse to pay out. 

Compare cheap business car insurance