A standard car insurance policy covers your car for so-called social, domestic and personal use, which includes everyday driving such as visiting friends, the shops or a day out.
Many policies also automatically cover your car if you commute to and from a regular place of work. So, if you drive the car to the same office every day, or park in the same station car park, you would be insured. But it’s always advisable to check this with your insurer to make sure you’re not under-insured.
What is business car insurance?
If you drive to several different offices or work sites, if a colleague regularly takes your car to visit clients, or if you drive hundreds of miles a week for business purposes you will need business vehicle insurance.
Car insurance for business use is different from commercial car insurance, which is what you would need if you drove a taxi or a delivery van.
If you have a company vehicle, insurance may not be required as the car should be insured by the company who leases or owns the vehicle. You should check this with your employer.
Business car insurance is typically more expensive than standard cover because a motorist who drives a vehicle for business as well as pleasure is deemed more risky. They will usually cover more miles, sometimes in heavy traffic and on unfamiliar roads. The chances of a claim therefore increase.
It’s important not to lie in order to bring down the cost of insurance. If fail to disclose the fact that you drive your car for work, you are committing an offence and could invalidate your policy – meaning your insurance would not pay out in the event of a claim.
When getting a business car insurance quote, you will need to answer the usual questions about your age, postcode and the make and model of your car, as well as details about your business, and when and why your drive for work.
Different classes of business car insurance
Business use car insurance comes in several different classes, depending on what level of cover you need. The different classes also vary from insurer to insurer, so always double check the terms and conditions of each policy carefully.
You will probably need class 1 business use if you drive your car to multiple sites or offices, as well as your usual place of work
You will probably need class 1 business use if you drive your car to multiple sites or offices, as well as your usual place of work. Most insurers also include a spouse on this type of policy, but would not insure the car for business use for any other named driver.
The next level of business car insurance generally covers the policy holder, plus a named driver who uses the car to travel between different sites. Someone who travels extensively in the car for work will almost certainly need class 3 business use.
Commercial car insurance
Business car insurance policies are not the same as commercial insurance policies. Commercial car insurance is primarily aimed at motorists who use their car for their job, such as a taxi driver or a delivery driver. The price of a commercial car insurance quote will depend on exactly how and why you use your car professionally. Again, it is important to remember that the definitions of the different classes differ between insurers.
Business car insurance also differs from company car insurance. If you drive a company car, the company car policy should be taken out by the company that owns or leases the vehicle.
Find cheap business car insurance quotes
As this type of insurance is usually more expensive, there’s even more incentive to find cheap business car insurance. The best way to save money is to compare car insurance quotes from a number of different insurers.
It’s easy to do this with MoneySuperMarket: you’ll be asked to declare how you use your car when you’re providing details about yourself and your vehicle. Once you’ve filled in all your details, you can compare quotes from a range of insurers.
Save money on your business car insurance
There are a number of factors that will affect your insurance premium. Your choice of vehicle has a big impact: insurers place cars in one of 50 car insurance groups, and cars in group one tend to be the cheapest to insure.
The security of your vehicle will also have an influence on price, as a secure car is less likely to be stolen. You might be able to reduce your premium if you fit an approved alarm and immobiliser, and keep your car in a locked garage overnight.
Insurers reward careful drivers with lower premiums, so try not to claim for minor issues. By not claiming, you can then build up a no claims discount and potentially cut the cost of cover by as much as 75%.
No one wants to pay over the odds for business car insurance but it is also important to remember that the cheapest policy is not always the best. You might, for example, want to pay a little bit extra for more extensive cover.
You can also increase the voluntary excess to reduce the premium price – but make sure the excess is affordable, in case you need to claim.
Finally, when you review your quotes, you should consider the quality score associated with each policy. We rate each policy on a number of factors that our customers find most important, to highlight how extensive the cover is.