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Business car insurance

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Buy car insurance and get year round hot drinks plus your choice of reward**

  • Covers use of your car for work-related purposes

  • Compare quotes from up to 169 trusted insurers1

  • Just add business use to your policy when getting a quote

**Single annual policy. New and former Paramount+ subscribers only who sign up at ParamountPlus.com. Subscription required. Auto-renews unless cancelled. 18+. Just Eat website account required, geographical exclusions apply. The year-round reward is provided by Greggs, and consists of one regular hot drink per month for a year, only available via the Confused.com app. T&Cs apply.
1Correct as of July 2024

What is business car insurance?

Business car insurance works like standard car insurance, but adds in cover for any driving you do as part of your job.

This means that if you're in an accident or your car is stolen or damaged while you're using it for work, you'll be able to make a claim.

Standard car insurance only covers you for social driving, commuting to a single place of work, or a combination of these, depending on your policy. Any driving you do for work isn't covered.

Do I need business car insurance?

You need it if:

  • You commute to more than 1 place of work, e.g. if your business has multiple sites that you drive between
  • You or a named driver use your car for work-related driving like travelling to meet clients or running work errands

You don't need it if:

  • You only use your car to commute to 1 place of work, e.g. an office, shop, restaurant or any other single workplace
  • You don't do any driving as part of your job, and only use your car for social driving outside work, or for commuting

What does business car insurance cover?


What’s covered:

  • Driving to meetings: This includes appointments, sales visits, training courses and away days 
  • Driving to multiple work sites: This includes commuting to more than one place of work
  • Running Errands: This includes things like driving to the bank, but not making deliveries to clients.
  • Transporting colleagues or clients: This includes driving colleagues or customers between sites

What’s not covered:

What our car insurance expert says

"If you use your car for work, such as driving to different sites, you should add business use to your car insurance policy. This ensures your policy stays valid while you use your car for work. When you get a quote, be sure to select ‘business use’ to only show policies that include this level of cover cover."

Louise Thomas, Motor Insurance Expert at Confused.com
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What type of business car insurance do I need?

When you get a quote with us, you'll have the choice of 2 types of business cover: business use and commercial travelling.

Number 1 icon

Business use

Otherwise known as class 1 business car insurance, or class 2 if you add a named driver.

This type of policy covers you for light business driving.

You'll need it if:

  • You only drive between a few business sites
  • You sometimes drive to work exhibitions and conferences
  • You run work errands, like taking things to the post office
Number 2 icon

Commercial travelling

Otherwise known as class 3 business car insurance, whether or not you add a named driver.

This type of policy covers you for extensive business driving.

You'll need it if:

  • You drive a lot for work, e.g. if you're a mobile hairdresser
  • You make regular trips between multiple clients
  • You often drive your car for long periods as part of your job

What if my named drivers use the car for work too?

If you have named drivers on your policy who use your car for work too, simply select 'business use for all drivers' when getting a quote.

Otherwise known as 'class 2 business car insurance', these policies will cover both you and your named drivers for business driving.

Learn more about how named driver car insurance works with our guide.

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How much is business car insurance?

Average business car insurance prices*:

Business use (class 1)


Commercial travelling (class 3)


*Confused.com data Q1 2024.

Business use

These policies cost £650* on average. Bear in mind that these are just averages, though. As fewer people take out business insurance, the average price paid for it may be different than what you'll be charged.

Commercial travelling

These policies tend to be more expensive, and cost £1,857* on average. This is due to the fact they're taken out by people who do a lot of work-related driving. As these drivers spend more time on the road, their risk of being involved in an accident while working is higher. This leads insurers to view them as higher risk, and they pay more for their insurance as a result.

Choose a reward & enjoy year-round hot drinks every time you buy car, home or van insurance**

How to claim

Rewards from Sainsburys, Paramount+, Just Eat, Halfords and Greggs when you get a quote and buy through Confused.com

**Single annual policy. New and former Paramount+ subscribers only who sign up at ParamountPlus.com. Subscription required. Auto-renews unless cancelled. 18+. Just Eat website account required, geographical exclusions apply. The year-round reward is provided by Greggs, and consists of one regular hot drink per month for a year, only available via the Confused.com app. T&Cs apply.

How can I make my business car insurance cheaper?

Choosing fully comprehensive cover

Despite it offering you the highest level of protection, fully comprehensive insurance tends to be cheaper than third party cover. This is due to the high number of claims made on third party policies in the past, when they used to be the cheapest option.

Giving an accurate mileage figure

When you compare quotes, we'll ask you how many miles you drive each year. Giving us an accurate figure ensures you're not paying for more cover than you need, as the more miles you cover, the higher your insurance costs will be.

Paying annually

While it can be more convenient, you're usually charged more for your cover if you pay monthly. So if you can afford it, paying annually can help reduce the cost.

Increasing your voluntary excess

This is the amount you pay towards a claim. Typically, the higher your excess, the cheaper your policy. Just make sure you pick an amount you can afford to pay if you need to make a claim.

Parking securely

If you can, park in a locked garage or driveway. Thieves are less likely to target your car if it's parked securely, and it's less likely to be damaged accidentally. Reducing the risk of either can help bring down your insurance costs.

Protecting your no claims bonus

Every year you go without claiming you build up your no claims bonus (NCB), which means you could get cheaper insurance. You can also protect your NCB with an add-on to your policy. With this, you can claim a few times without affecting your no claims bonus.

Installing security devices in your car

If you use your car to visit several clients or work sites each day, and park it in multiple locations, it's risk of being stolen goes up. Immobilisers and steering wheel locks can help cut that risk.

Comparing quotes with us

Shopping around for a deal is a quick and easy way to save money on your business car insurance.

For more advice, read our tips on how to get cheap car insurance.

Compare cheap business car insurance quotes

What if I only use my car for work now and again?

If you only use your car for work occasionally, you could take out a temporary business car insurance policy for however long you need cover for.

These policies can cover you for anything from 1 hour to 28 days.

If you already have a non-business car insurance policy in place on your car, you can take a temporary business policy out alongside it. This would cover you for business driving, and would allow you to claim for any incidents that happened while you were using your car for work.

As it's a separate policy, you'd also be able to claim without affecting your main insurance policy, as well as any no claims bonus you'd built up.

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How do I compare business car insurance?

Pick your cover type

When you get a car insurance quote, we'll ask you 'what will the car be used for?'.

Select 'business use'.

You'll then be given 3 options:

Business use by you: Pick this if you only need cover for light business use.

Business use by all drivers: Pick this if you and a named driver both need cover for light business use.

Commercial travelling: Pick this if you do extensive driving as part of your job.

Enter your personal details

We'll need a few details from you to find you our best deals. These include:

Details about you:

  • Your occupation, address and age
  • Any points on your licence as well as the conviction code
  • Details of your no-claims bonus (NCB) in years
  • Previous claims or accidents from the last 5 years

Details about your car:

  • Registration number
  • If you don't have this, then its make and model
  • Any modifications made to your car

We compare up to 169 trusted insurance companies1 to get you our cheapest deal in minutes

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Why use Confused.com?

  • Save up to £539* on your car insurance

    You could save £100s by comparing quotes with us, so why not join the millions of drivers who've saved money with us over the last 20 years?

  • Get a free reward when you compare

    Choose a reward from Sainsbury's, Halfords, Just Eat or Paramount+ when you buy your insurance through Confused.com. Plus, get a free hot drink every month for a year through our app.

  • Get access to exclusive deals

    We speak to our insurance partners to get the best deals and exclusive discounts for you. When you get a quote, look out for your 'special offers' which are highlighted on the prices page.

  • We promise to beat your renewal price

    And if we can't beat it, we'll give you the difference plus £20(2).

*Based on data provided by Consumer Intelligence Ltd, www.consumerintelligence.com (April '24). 51% of Confused.com car insurance customers could save £539.54

(2)Single annual policy only. T&Cs apply. Must be a like-for-like policy.

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based on 176424 reviews as of 06/06/2024

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Types of car insurance

Need more help?

Do I need business car insurance if I have a company car?

If you have a company car, it's usually covered by your company. They usually insure drivers with an any driver car insurance policy.

Make sure you check this with your employer though. It's not worth risking driving uninsured.

If you do need to buy car insurance for your company car, you can compare policies with us.

Can I upgrade my car insurance policy to a business car insurance one?

You might be able to add business car insurance cover to an existing policy. But you need to contact your insurer to see if you can change your car insurance. They might charge you more for this and there might be an administrative charge too.

Car insurance guides

Page last reviewed: 06 June 2024

Reviewed by: Louise Thomas