1. Home
  2. Car insurance
  3. Business car insurance

Business car insurance

Compare cheap business car insurance quotes

Retrieve a quote

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 174 trusted insurers1

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

**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. One regular hot drink per month for a year, only available via the Confused.com app. T&Cs apply
1Correct as of February, 2024

What is business car insurance?

Business car insurance covers you to use your car for any driving related to your work, with the exception of commuting.

As it allows you to use your car for work, it's different to standard car insurance, which usually only includes cover for social use.

The car insurance classes of use are:

  • Business car insurance gives you the cover you need to drive your car for work
  • Social only is also known as social, domestic and pleasure and covers you for all non-work related driving. This includes things like shopping, day trips and holidays, plus visits to friends and family
  • Social and commuting includes everything that social only does as well as cover to commute to a single place of work

Do I need business car insurance?

If you or a named driver on your policy use your car for work-related purposes, you'll need business car insurance.

Commuting to more than one place of work counts work-related driving too. So if you travel between multiple offices, you'll need business car insurance.

If you drive multiple vehicles as part of your job, your employer may have to have any driver insurance in place. This insures a vehicle for use by multiple drivers.

Getting the right cover is crucial. Fail to get it right and you may not be able to make a claim if you're involved in an accident. You could also be charged for driving without insurance.

What type of business car insurance do I need?

This depends completely on how you use your car and who uses it for work. There are 4 classes of use in total:

  • Business car insurance - use by you (class 1) is usually the cheapest type of business car insurance. It covers you as the policyholder if you’re driving to visit customers or between different sites or offices. You can also set it so that your partner has business use but you don't.
  • Business car insurance - use by you and spouse (class 2) extends this cover so both you and your partner can drive the car for business purposes. Your partner should be a named driver on your policy.
  • Business car insurance - use for all drivers (class 3) lets all named drivers on the policy drive the car for business purposes.
  • Business car insurance - commercial use is usually the most expensive class of business car insurance. These policies cover you if driving is a permanent part of your job and you're selling goods and services.

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
£679
Business use by you and your spouse
£511
Business use for all drivers
£858
Business use commercial
£1,874

*Based on Confused.com data, average annual premium for business class of use. October - December 2023.

What does business car insurance cover?

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.

Tick

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
Cross

What’s not covered

How much is business car insurance?

The average price of a business car insurance policy is £6791 but your own policy price depends on several factors including:

  • Your Class of use
  • The level of insurance cover you need (comprehensive, third-party fire & theft, third-party only)
  • Your occupation
  • Your estimated mileage

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:

  • Using a black box or telematics policy that rewards careful drivers with lower costs. Although it's worth bearing in mind that some black box policies do come with driving restrictions, which may not be suitable for business use.
  • People do an average of 6,500 miles per year1. However, if you're taking out business car insurance, you're probably doing a lot of miles. By being more accurate with your annual mileage, you can help make sure you're only paying for the miles that you do.
  • Installing security devices in your car
  • Parking your car with security in mind - a locked garage is better than street parking, for example
  • Paying annually rather than monthly for insurance. Paying monthly can cost up to 20% more because of interest.
  • Increasing your voluntary excess - if you’re willing to pay more towards a claim, you should see your costs fall

1 Based on Confused.com data, October - December 2023.

Year round hot drinks plus your choice of reward every time you buy car insurance**

How to claim

A cup of Greggs hot drink with a plus sign and a selection of Confused.com rewards

**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. One regular hot drink per month for a year, only available via the Confused.com app. T&Cs apply

Can I get temporary business car insurance?

Yes, you can get temporary business car insurance. Short-term business car insurance is flexible, lasting from 1 hour to 28 days.

This could work out cheaper if you only need to use your car for work-related driving every now and again, including things like driving to a corporate weekend away or training course. 

Several insurers offer temporary business car insurance. Many offer instant cover, so you can drive away within a few minutes of finding a policy.

You should also be covered for everything you need, as all temporary business policies provider comprehensive cover which includes legal liability cover and damage to your car. If you're likely to use your car regularly for work, you may be better off getting standard business car insurance rather than a temporary policy.

What details do I need to get a business car insurance quote?

Having the following information to hand will speed up getting a business car quote:

Personal details

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

Car details

  • Registration number or make and model of your car
  • Any modifications made to the car
  • Estimated annual mileage

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
Motor Insurance Expert Confused.com logo

Compare cheap car insurance quotes

We compare up to 174 trusted insurance companies to get you our cheapest deal in minutes

AA car insurance logo
Admiral car insurance logo
Churchill car insurance logo
Brightside logo

Why choose Confused.com?

  • We're FCA regulated, meaning that we have to work to strict regulations set by the Financial Conduct Authority. The same applies to our car insurance providers as well, who all have to be FCA regulated in order to join our panel.
  • Whenever you use the Confused.com website, it's always free. We only get paid a fee by an insurance company once you have finished buying your policy.
  • Confused.com is 100% independent, and not owned by an insurance company. This means we only show you the best available prices that aren't influenced by any other factors.
  • Established in 2002, we're the longest running car insurance price comparison site, and have helped millions of customers find a better deal on their car insurance.
Reviews logo white

Types of car insurance

Need more help?

Can I add a named driver to my business car insurance?

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:

  • The additional driver's occupation
  • The type of licence they currently have and how long they've held it for
  • Their relation to you
  • Any details of past car insurance claims
  • Any motoring convictions from the past 5 years

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.

Will my existing no-claims bonus be affected if I claim on business car insurance?

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.

Who pays for car insurance for business use?

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.

Show more

Car insurance guides

Page last reviewed: 30 January 2024

Reviewed by: Louise Thomas

After buying car insurance, 96% of Confused.com customers would recommend us (based on 157737 Reviews.co.uk respondents - as of 13/10/23). Read our reviews