This depends completely on how you use your car and who uses it for work. There are 4 classes of use in total:
Here is a summary of the average costs associated with each class of use for business car insurance:
| Vehicle class of use | Average premium* |
|---|---|
|
Business use by you
|
£478.04
|
|
Business use by you and your spouse
|
£375.49
|
|
Business use for all drivers
|
£564.74
|
|
Business use commercial
|
£1,117.19
|
*Based on Confused.com data, average annual premium for business class of use. December 2022 to May 2023
A business car insurance policy offers the same level of cover as a standard car insurance policy does. The only difference is that you'll be covered for using your car for business purposes.
The average price of a business car insurance policy is £3851 but your own policy price depends on several factors including:
While it's easy to be swayed by price, your cheapest option may not be the right policy for you. That doesn't mean there aren't ways to save yourself money on your car insurance.
The cheapest policy isn’t always best, but there’s no point in paying for cover you don’t need. And different business car insurance policies have different levels of cover. So it’s important to check how much cover the policy you’re considering offers and whether it's at the right level for you.
To keep the cost of business car insurance down, consider:
1 Based on average business use car insurance policies from February 2023 to April 2023
2 Based on Confused.com data, December 2022 to April 2023.
**Single annual policy. Shell Go+ account required. Only one £10 fuel reward can be used per transaction and each can only be used on fuel purchases of £10 or over. HelloFresh 18+ subscription service. Geographical exclusions apply. T&Cs apply
"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."
"Great site. Gave me a large selection of quotes to choose from."
Chris - Confused.com customer (March 2023)
"Quick and simple process and best quotes easily accessible."
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"Lots of prices and easy to compare the different companies."
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lets you prove you’re a safe driver, and save money on your policy, even if you’re inexperienced or seen as high risk.
offers cover for owners of classic cars. For insurance purposes, a classic car can be any car that’s older than 15 years.
Yes. To add an additional driver, select "yes" when asked if you want to add an additional driver to your policy. When doing this, it's likely you'll need to know:
If you're looking to add a driver to an existing policy you'll need to contact your insurer who can guide you through the process.
Adding a driver to your policy could bring your costs up or down, so it's worth checking before you commit to adding them.
If you've added business use to your existing car insurance policy, you only use your standard no-claims bonus. So, if you had an accident while on a business trip, your no-claims bonus is likely to be affected.
If you're using a company car, your policy might have its own no-claims bonus. Claiming on your company car insurance policy shouldn't impact any no-claims you've built elsewhere.
Usually, your employer pays for the additional cost of your business car insurance, so it’s worth talking to them.
If your employer doesn’t fully pay for your business car insurance costs, they might contribute towards mileage during working hours.
If you’re self-employed, your business is the one to pay the bill.
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Page last reviewed: 13 June 2023
Reviewed by: Louise Thomas
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