A simples guide

Do I need special insurance for my business car or van?

Do you use your car or van for work? You might not be covered!

Standard car insurance might not even cover your commute to and from work. Make sure you know what is and isn’t included in your vehicle insurance, and whether you need additional cover.


Some of us have never given any thought to getting business car insurance. We think: I’m insured, and it’s my van, so I’m covered.

Unfortunately your motor insurance may not provide cover if you use your vehicle for work purposes, and thousands of motorists have discovered that they weren’t protected at all.

 

What Does Business Car Insurance Cover?

A standard motor insurance policy provides cover for social domestic and pleasure use for your car or van. Some policies will include cover for your commute to and from a single place of work, but not all do and you may have to select cover for commuting. So it's always best to check this when you start a new insurance policy or your circumstances change.

But if you drive to different locations, such as different offices, or visit different customers, or even something as simple as driving to the post office or bank as part of your job you will need business cover.

For business car insurance you can select different levels of business use as part of your private policy. For example this could cover any driving you do as part of your job – even if you’re self-employed.

Let’s break car insurance down into its different types, and see what each actually covers.

Some Different Levels of Car Insurance Cover 

Social, Domestic and Pleasure Cover

It covers only day-to-day activities like pleasure driving, visiting friends and family, taking the kids to and from school or events, doing the shopping and running errands.

Commuting Cover

Social, domestic, pleasure plus commuting cover is one of the most popular levels of insurance cover. Commuting cover is another level of cover which insures you for social, domestic and pleasure plus any driving you do to a single, permanent place of work. However, if you work in several different locations or have to travel to different worksites or to meet with clients you may not  be covered, even with commuting added on.

Class 1 Business Use Cover (‘only you’ on our website)

Class 1 cover includes driving between different worksites or occasionally travelling to meet clients. Class 1 does not cover making deliveries or door-to-door sales, though.  Your spouse may also be covered, depending on your policy.

Class 2 Business Use Cover (‘you and your spouse’ on our website)

Class 2 usually covers the policy holder and another named driver, even if they are not a spouse, this can include anyone who works for you. It typically covers the same types of activities as Class 1.

Also, if you have a joint policy with your partner and you need business use but they don't, you can usually have this noted.

Class 3 Business Use Cover (‘any named driver’ on our website)

Class 3 is great for salesmen doing a lot of travel or those with similar job duties. It covers delivering samples, but not actual commercial merchandise. 

Why is business car insurance so expensive?

If you're driving about all day you’re deemed to be at a higher risk of having an accident and making a claim. You may be driving in unknown territory or at busy times. More hours on the road could mean more risk, so it's inevitable that if your risk of a claim rises, so will your premium.

So Do I Need It?

If you drive to work even just a few times a week, you probably do need at least commuting cover. 

If you’re doing anything more business-oriented than that, you definitely need business use car insurance. It will probably cost you more every year, but not having it means that you are driving without valid insurance.

It’s not just a bad idea, it’s illegal, so start a quote, telling us a bit about you, your car and what level of cover you’ll need. Our online comparison service will do all the leg work for you and provide you with a range of competitive quotes that suit your needs.

Don't worry, there are lots of things you can do to keep your premiums down and keep yourself insured properly. Don't wait until your renewal is on top of you, do it a couple of weeks before – that way you're not rushing and have time to consider the best options for you.

Once you've got your quote you can have a look at where you can make savings. The great thing about our comparison service is that it’s easy to try different options to see how they affect the various premium. See if increasing your voluntary excess reduces your premium - although never increase it to an amount that you won’t be able to afford in case you do need to make a claim. You might also want to look at what security features can be added, or if it's worth keeping your car in your garage overnight to reduce the price. If you take your time and let us help, you’re sure to find yourself good value or even cheap business car insurance – but make sure it covers everything you need it to.

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