As business car insurance policies offer a different type of cover to standard social and domestic use policies, they can come with increased premiums. This is usually because of the increased mileage and use, unfamiliar roads and increased risk from travelling to and from different locations.
Insurers use lots of different factors to calculate insurance prices, 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, leaving you unable to make a claim.
If you'd like more information on business car insurance, take a look at our guide.