Business car insurance

Business car insurance can be complicated because it’s not always clear when you need it and when you don’t.

For example, driving to and from work is known as commuting and is often covered in standard Comprehensive and Third Party policies but that depends on your insurer.

Some have separate policies, sometimes referred to as ‘Social including commuting’ and this covers you to drive to work, whereas other insurers include commuting in standard policies.

As a general rule, you do not need business car insurance if you just commute but if you use your car for work to visit clients or different offices on the same day, then you will.

Because you’re making multiple journeys and getting in and out of your car more than those who just commute, you’re deemed more of a risk, which means business car insurance premiums are usually more expensive than normal ones.

How is business car insurance different?

There are lots of different types of business car insurance policies and they each cover different things.

For example, a door-to-door salesman will need a slightly different policy to the regional manager of a national company who travels to different offices throughout the day.

Because of this it is important you pick the right insurance policy to suit your business needs.

Can I get business car insurance?

Business car insurance is just another form of car insurance that keeps you covered if you drive for work.

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Is business cover more expensive than standard insurance?

Business car insurance basically covers you to drive more, so you will pay more for your insurance because you need more cover.

While that’s not ideal, your employer will usually cover any additional costs through a mileage allowance or by simply paying the difference.

It’s always worth paying that little bit more for business car insurance if you use your car for work.

If you are unfortunate to be involved in an incident while driving for work and you only have standard insurance cover, your insurer will not pay out and that will cost you.

Business car insurance options

Picking business car insurance isn’t easy because there are lots of different options available.

There are essentially three main options:

Class 1 – This covers the use of a car for business purposes but excludes commercial use (including door-to-door sales or delivering goods). It only applies to the policy owner and their spouse on some occasions.

Class 2 – This usually covers two drivers, the policyholder and a named driver for business use. Again, commercial use is usually still excluded.

Class 3 – This covers commercial use and door-to-door sales.

There are different classes and types of business car cover options on top of these basic classes, but they change from insurance broker to insurance broker.

As ever with insurance, you need to check with your insurer that your needs are covered by the policy.

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What is used to calculate business car insurance?

On top of the usual factors that influence the cost of your car insurance premium, business car policies also look at:

  • How many miles you will drive for business purposes
  • What business the car will be used for
  • When and where it will be used

I drive a company car; do I need business car insurance?

If you’re lucky enough to have a company car then lucky you, you get the use of a brand new car.

And lucky you again because when it comes to insurance your company should have covered your company car for business and personal use at no extra cost to you.

That means company car drivers do not need business car insurance.

Why for business car insurance?

If you aren’t quite sure what kind of business car insurance policy you need or whether you need one at all, then the information on can help you decide.

We explain the different types of business insurance to help you decide which policy suits your needs.

And if you still need answers you can also give us a call and explain things a little further over the phone.

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