What is company car insurance?
Some companies will lease staff or drivers a car, whilst other companies may provide them. Whilst the employer ultimately keeps ownership of the car, it is often left up to the individual to arrange their own insurance and this is where company car insurance can help.
Instead of most standard policies where the car is registered to an individual, with company car insurance, the car often remains registered to a company but defined on the insurance as leased.
During our quote process, you will be presented with the questions;
- Whose name is on the registration document?
- Who owns the car?
If your company is on the registration document, it's at this point you should select 'company (leased)', 'company' or 'limited company' depending on your circumstances.
Insurance for your line of work
Depending on the type of work you do, as well as listing the car as leased on the insurance, you may want to take out a commercial travelling policy that covers driving lots of miles in the car for work.
This sort of policy is aimed at salesmen or reps who may also carry samples. What it doesn't cover are jobs such as delivery drivers or taxi drivers who will instead need a specialist policy we don't currently offer.
Find a full explanation of business policy types including commercial travelling, over on our business car insurance page.
What else should I know?
As company car policies offer a different type of cover to standard use policies, they may come with an increased premium.
When calculating a premium, insurers will take into account factors such as:
- The car may cover more miles/the car may have a higher mileage
- The car may be on the road at busier times of the day
- The driver may be driving in unfamiliar locations
To make sure you're getting the correct type of insurance, insurers may ask you for specific information to do with type of business, the amount of miles you expect to cover and when and where the car will be driven.
If you intend to use the car for commercial travelling, you may think that you can save yourself some money by not declaring you use your car for commercial travelling use and instead rely on a domestic policy. However, if you fail to disclose that you use your car for work purposes, you may have your insurance policy voided.
If you'd like a little more information, take a look at our guide to business car insurance.