What is a business car insurance policy?
Standard policies cover you for domestic use and commuting back and forth to work but if you use your car for more than that, you'll need to take out some form of business policy.
Getting your car covered for business use isn't as straight forward as taking out a standard social and domestic use policy, in actual fact, there are lots of different types and classes available depending on the work you do and what you're using your car for.
- Business use (class 1) - Cover for the main driver in connection with their work for driving to different sites that aren't their normal place of work. A spouse may also be covered for business use but other named drivers may not be
- Business use (class 2) - Usually covers the policyholder and a named driver for business use, although some insurers may stipulate that the two must work in the same occupation
- Business use (class 3) - Provides cover for the transportation of light goods and some selling purposes such as door-to-door sales
Because many of these policy types can be complicated and consist of lots of different factors, it's always worth checking the terms and conditions of the policy and confirming directly with the insurer that the policy fully covers you for your business needs.
Why might I need one?
If you use your car for work including but not limited to:
- Regularly commuting to different locations
- Driving lots of miles a week
- Driving colleagues around
- Using your car for tasks related to your work
What else should I know?
As business car insurance policies offer a different type of cover to standard social and domestic use policies, they can come with increased premiums.
Insurers use lots of different factors to calculate the insurance price including:
- When and where the car will be used
- Who will be using the car
- How many business miles the car will do
- What the car will be used for
It might seem like a good idea to save yourself some money by not declaring you use your car for work use and just rely on a social/domestic policy, but failing to fully disclose to an insurer if you use your car for work purposes can invalidate your insurance and following an accident, make you unable to make a claim.
If you'd like more information on business car insurance, take a look at our guide.