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Business car insurance

The weekly drive to the supermarket. The school run. As you’d probably expect, these are the kinds of journey covered on a standard car insurance policy.

But what if you get a job that requires you to use your own car to drive between different offices, perhaps several times a day? Maybe you need to transport clients around, or let another colleague use your car to visit clients? If that sounds like you, it’s time you got yourself a business car insurance policy.

True, these types of premiums can be more expensive than a standard motor insurance policy. But without it, you may not be covered should you have an accident in the course of your working day.

So how does business car insurance work?

Why is business car insurance more expensive?

If you have to drive every day for work you’ll probably spend more time at the wheel, at popular times on unfamiliar routes, all of which could increase your chance of having an accident resulting in you making a claim.

I commute to work. Do I need business car insurance?

Policies vary so always read the small print, but you’ll need to inform your insurer if you start commuting to work in the car if you haven’t done so previously. That’s because you may just have a social, domestic and pleasure policy, which only covers you for trips such as going out shopping or to visit family and friends and does not cover commuting.

I use my car as part of my work. How much business car cover do I need?

There are different classes of business car insurance based on what the vehicle will be used for.

If you or your spouse drive your car to multiple sites or offices in addition to where you normally work, you’ll probably need class 1 business use.

Class 2 is the next level of business car insurance and generally covers the policyholder and a named driver who uses the car to travel between different sites.

For things like making light deliveries or door to door sales, you’ll probably need class 3 business cover.

How do I keep my business car insurance premiums down?

Premiums are normally higher for business use, so you’ll want to try to keep costs down. Don’t ever be tempted to lie about how much you use your car though. Failure to disclose information is an offence and could make any claim you make invalid.

Taking measures to secure your car, by keeping it in a locked garage or fitting an approved alarm and immobiliser, could keep costs down as your insurer will see that it is less likely to be stolen.

It could also be worth trying to sort out minor scrapes and dents yourself without making a claim through your insurance company unless the damage is serious – though remember, you should always notify your insurer of any accident. Building up a no claims discount can tidily reduce the cost of your cover.

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