60-second summary
Just want the basics? Here’s your quick guide to car insurance classes of use:
Car insurance classes of use determine how you use your car and can impact your insurance premium. Using your car for commuting or business generally increases risk, which may raise your premium.
The main classes are social, domestic and pleasure (SDP), social, domestic, pleasure and commuting (SDPC) and business use (SDPC + Business). There’s also commercial vehicle insurance for jobs directly involving driving, such as taxi driving, delivery services, or chauffeur work.
Class of use matters because insurers assess risk based on how you drive. More time on the road, particularly in peak traffic, increases accident risk, which can raise premiums.
Using the wrong classification (e.g. saying you only drive socially when you commute) could invalidate your policy, leaving you uninsured.
Want to add business use to your insurance? Talk to your provider about upgrading, or shop around for a new policy that includes business use.
What are car insurance classes of use?
Car insurance ‘classes of use’ are a way for providers to classify how you intend to use your car. When you get a quote for car insurance, you’ll be asked which class of use you want to insure your car for.
How you use your car may not seem that important, but the difference between using it to do the shopping and school run, or using it to travel for work, can have an impact on the price of your premium.
Why? Because the more miles you clock up, especially at certain times of the day such as rush hour, the higher the risk of you being involved in an accident.
What are the different car insurance classes of use?
There are three classes of car insurance in the UK for personal use, while there are other classes that fall into commercial use. Here are the different types of car insurance:
1. Social, Domestic and Pleasure (SDP)
SDP is when you use your car for everyday social driving, such as visiting friends, doing the school run and shopping.
2. Social, Domestic, Pleasure and Commuting (SDPC)
This class covers the same as SDP insurance but also includes journeys to and from work. It also includes driving to and from the train station and leaving your car there to take the train to work, and even driving someone else to work. You do not need business insurance to drive to work.
Just be aware that, typically, only one place of work is covered. If you travel to a number of places for work, it’s likely you’ll need the next level of cover. Check your policy wording to find out more.
3. Personal business use (SDPC + business use)
This includes everything in the first two categories plus business-related driving, which is split into the following:
Class 1 business insurance – if you need to travel to more than one place for business purposes – for example, on-site visits or driving to various business meetings.
Class 2 business insurance – same as above but also includes another named driver, such as your spouse, partner or a colleague if they also use your car for business purposes.
Class 3 business insurance – sometimes called ‘commercial travelling’, this can potentially cover unlimited miles and an unlimited number of destinations: if you’re a sales rep, for example. Just be aware that while this class may cover delivering samples, it doesn’t cover business goods or merchandise – you’ll need commercial insurance for that. Some insurance providers will ask for extra details for this class, so they can assess how much driving you’ll be doing, before calculating your business car insurance premium.
4. Commercial use
You’ll need commercial car insurance if you drive for your job: for example, if you’re a minicab or taxi driver, chauffeur, delivery driver or driving instructor. Within commercial car insurance, there are some additional cover types also worth considering:
Hire and reward cover: Essential if you’re using your vehicle to carry goods or passengers in exchange for payment, for example delivering parcels or food as a courier. Your employer may provide this for you, so it’s best to check before buying your own policy.
Goods-in-transit cover: This protects the goods you’re transporting. It's particularly important for businesses that deliver products, as it ensures that the value of the goods is protected against unforeseen events such as theft or accidents.
Why does class of use matter?
When an insurance provider calculates your car insurance premium, it'll assess your risk of being involved in an accident. The way you use your car affects that level of risk.
Commuting to work, for example, could involve being on the roads at the busiest times, so you’d be exposed to more risk than if you were driving for purely social reasons.
For an insurance provider, the greater the risk, the higher the premium it'll charge.
How to add business use to your car insurance
If you currently have an SDP or SDPC policy but need to use your car for business purposes, you’ll need to upgrade your insurance policy. To do that, you have two options:
Upgrade your existing policy: Contact your insurance provider and discuss your needs. It can advise you on the best type of business cover and provide a quote for the additional premium.
Shop around: We can help you compare business car insurance policies to find the cover you need. You can compare cover options and potentially find a cheaper quote than the one your current provider will offer.
If you decide to compare business car insurance quotes, you’ll need to decide whether any early exit or cancellation fees are worth paying to switch policies.
Which class of use is cheaper for car insurance?
According to our data, business use car insurance is the cheapest class of use, costing the majority of customers less than £531.03. This is cheaper than both SDP (£717.71) and SDPC (£695.90) [1], which might be surprising to some drivers.
While business use typically involves higher mileage, insurers may assess these drivers as lower risk in certain cases. This is because professional drivers could be more experienced, may take extra care on the road and tend to drive well-maintained vehicles.
Additionally, some insurance providers offer discounts for specific professions or structured business use, where risk factors are deemed more predictable. However, the cost of your policy will still depend on factors such as your age, job, location, driving history, and vehicle type.
[1]51% of business use, SDP and SDPC drivers could achieve these quotes for their car insurance. Based on Compare the Market data in January 2025.
How much does it cost to add business use to car insurance?
If you already have an SDP or SDPC policy and need to add business use, your insurance provider will recalculate your premium based on several factors, including:
Your mileage and travel patterns: More miles, particularly in high-traffic areas, could increase costs.
Your occupation: Some professions, such as sales representatives, require extensive travel and may be seen as higher risk.
Your vehicle type: Certain cars, especially more expensive models or those with modifications, may require additional cover when used for work.
Adding business use mid-policy may result in an increased premium. Providers may also charge an admin or policy amendment fee, typically between £10-£25.
If your revised quote is too expensive or the admin fees are high, it may be worth shopping around for a new policy instead. Be sure to check for cancellation fees before switching, as some providers charge penalties for early policy termination.
To find out how much business use car insurance could cost for you, it’s always best to compare quotes and find the right cover.
What happens if I choose the wrong class of use?
Don’t be tempted to select the wrong class of use just to keep the cost of your car insurance down. The consequences, if you’re involved in an accident and need to make a claim, are simply not worth the risk.
If you’re in the Social, Domestic and Pleasure class but you actually use your car to commute to work and back, for example, you’d be driving uninsured in the eyes of the law. If you’re caught driving to work without commuting insurance, not only could this invalidate your policy, it might also lead to a criminal conviction.
How can I reduce the cost of my car insurance premium?
There are ways you can reduce the cost of your car insurance while staying on the right side of the law:
Choose a car in a lower car insurance group
Only buy add-ons that you need – extras such as a courtesy car, motor legal protection and windscreen cover could hike up the price of your premium
If you’ve only just passed your test, consider a black box policy – you could be rewarded with a discount for good driving.
Check out more of our top tips for cheaper car insurance.
Shopping around could also help you save money on your car insurance. Get a car insurance quote with us today to see if you can save.
FAQs
Will I be asked my class of use when getting a quote?
Yes. When you get a car insurance quote with us, we’ll ask you a number of questions including what you use your car for. This is so we can provide you with quotes to suit your needs.
Does my car insurance cover deliveries?
If you intend to make deliveries, you’ll need a special type of commercial car or van insurance that includes ‘hire and reward’ cover.
Your current insurance provider might be able to expand your SDP cover to include hire and reward. If not, you may have to take out a commercial policy with them or find a new provider that covers you for personal driving and making deliveries.
What does commuting mean on car insurance policies?
Most insurance providers define ‘commuting’ as travelling to and from the same place of work each day or taking the same route – for example, driving to the train station and parking there each day. If your daily commute varies and you travel to more than one location for work, check with your insurance provider as you may need extra cover.
Does Social, Domestic and Pleasure include commuting?
No. If you use your car to drive to work, you’ll need Social, Domestic, Pleasure and Commuting (SDPC), which covers commuting.
What is commercial travelling?
Insurance for commercial travelling falls under business use and is intended for professionals, such as sales representatives, who frequently visit multiple locations. This class of use may cover an unlimited number of miles and destinations. However, it does not include transporting goods or passengers for payment – those activities are classed as hire and reward and require a commercial insurance policy.
How do I change the class of use on my car insurance policy?
If your class of use changes in any way, you should contact your insurance provider immediately. It'll reassess your cover and make any necessary changes to your premium. You should always be honest when it comes to car insurance. It’s better to pay slightly more for your premium than run the risk of not being properly insured.
Julie is passionate about delivering a great customer experience and rewarding people for saving on their insurance through our loyalty and rewards programme. She’s spoken to the media, including outlets like Sky News, about car and home insurance, as well as our Meerkat rewards scheme.
Rebecca Goodman is a freelance financial journalist who specialises in insurance, personal finance and consumer affairs.
Our content is written by a Compare the Market expert, backed by data and enhanced by AI. Find out how we ensure accuracy and quality in our Editorial Guidelines.
