Compare Business Car Insurance |

A simples guide

Compare business car insurance

If you use your car for work, standard car insurance might not provide sufficient cover. Read our guide to find out whether you need business car insurance.


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There are three classes of car insurance

Car insurance can be separated into three classes of use:

Social, domestic and pleasure. The most common class, this covers day-to-day activities, such as visiting friends and family, taking the kids to and from school or events, and driving to the shops.

Social, domestic, pleasure and commuting. As above, but also offers cover for your commute to and from a single, permanent place of work. If you drive to a train station and park your car there, as part of your usual journey to work, this is typically considered to be commuting and will be covered by your insurance.

Business use. If you use your car for work beyond just commuting, for example you travel between different offices, visit customers, or even drive to the post office or bank as part of your job, you’ll need business car insurance.

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Why is business car insurance so expensive?

Business car insurance is often more expensive than standard insurance because providers consider you to have a higher risk of having an accident and making a claim. You may be driving on unfamiliar roads and at busy times, and you’re probably spending more hours on the road than the average driver.

While business car insurance will typically cost you more, if you don’t have the correct class of use on your policy you’re driving without valid insurance and your provider could refuse to pay out should you make a claim.

The different classes of business car insurance

There are different classes of business car insurance, all of which also cover social, domestic and pleasure use.

Class 1
Includes cover for driving between multiple places of work or occasional travel to meet clients. Occupations covered by Class 1 insurance typically include a care worker who drives to visit various patients. Class 1 doesn’t provide cover for making deliveries or door-to-door sales. Your spouse may also be covered, depending on your policy – check your certificate of insurance if you’re unsure.

Class 2
Class 2 offers the same level of cover as Class 1, but will also include a named driver on the policy. Typically, most insurance providers will stipulate that the policy holder and the named driver must use the car for the same business. As in Class 1, deliveries or door-to-door selling are not covered.

Class 3
Class 3 is appropriate if you drive a significant number of miles as part of your job – if you’re a salesmen, for example. It covers delivering samples, but not commercial merchandise. This tends to be the most expensive level of business car insurance as providers consider high-mileage drivers to be at more risk of having an accident and making a claim. Be aware, though, that Class 3 won’t cover you if you use your car for commercial purposes, such as a taxi or to make deliveries.

How can I find affordable business car insurance?

Finding business car insurance couldn’t be easier. Simply start a quote, telling us a bit about you and your car, and what level of cover you need. Our online comparison service will do all the hard work for you and provide you with a range of competitive quotes that suit your needs.

Once you have your quote, you can look at where you can make savings on your car insurance. The great thing about our comparison service is that it’s easy to try different options to see how they affect the quotes you’ve been given. See if increasing your voluntary excess reduces your premium – although never increase it to an amount that you won’t be able to afford if you do 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 a locked garage overnight to reduce the price. If you take your time and let us help, you’re sure to find yourself good-value business car insurance – but make sure it offers the cover that you need.

do I need business car insurance

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