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Business car insurance

Compare cheap business car insurance quotes

  • Save up to £235 on your car insurance1
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Compare cheap car insurance from over 110 providers

We do the hard work for you, comparing deals from the biggest providers in the UK so you can get the right cover - and save up to £2351 on your premiums.

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Get up to £150 off at the garage

Get £150 towards MOTs, tyres and servicing when you buy car insurance with MoneySuperMarket, to keep you on the road all year round

 

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You can use your vouchers to get money off at hundreds of participating garages around England, Scotland and Wales, including:

 

What is business car insurance?


Business car insurance covers your car if you use it for work. This is different to a standard policy, which only provides cover for social use and commuting. It’s important to make sure your car is insured at all times, whichever class of use.
  • Business car insurance: Covers you if you use your car for work-related purposes
  • Social only: Covers you for everyday driving like going to the shops or visiting friends
  • Social and commuting: Covers you for everyday driving but also covers your commute to your permanent place of work


 

Car illustration

Do I need business car insurance?

If you use your car while working, you need business car insurance. If you’re involved in an accident while using your car for work and you haven’t bought business car insurance, you will be unable to make a claim – and you may be committing an offence.

 

Business use car insurance comes in several different classes, depending on what level of cover you need:

  • 1 icon

    Business car insurance class 1

    Covers your car if you use it to drive between multiple work locations, or to visit clients or customers. It’s usually the cheapest class of business car insurance

  • 2 icon

    Business car insurance class 2

    Grants the same coverage as class 1 but allows you to add a named driver – a co-worker who will also be insured to drive the same car

  • 3 icon

    Business car insurance class 3

    Covers long-distance driving as part of your business use. Class 3 insurance is the most expensive, but it might be necessary if you’re a door-to-door salesman, for example

It's important to remember that commercial car insurance is different from business car insurance. Commercial car insurance covers people who use their car as an integral part of their job – such as taxi drivers, delivery drivers or driving instructors. 

If you have a company car, it’s likely you won’t need business car insurance as it should be insured by the company. However, it’s a good idea to check with your employer to make sure you’re fully insured.

What does business car insurance cover me against?

It varies between insurers, but you can find car insurance that covers you for business use at every level of cover including:

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Fully comprehensive

A fully comprehensive car insurance policy will cover you for damage, repairs, medical expenses, fire damage and theft, as well as damage done to someone else, their car or their property

£576 on average2

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Third-party, fire and theft

Third-party, fire and theft policies offer cover for other people, their vehicles and their property, as well as protection for your own vehicle if it’s stolen or damaged by fire

£990 on average2

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Third-party only

Third-party only car insurance is the least comprehensive cover available, and it’s the minimum legal requirement you must meet to drive on UK roads. It’s also usually the most expensive

£1,411 on average2

2Based on all business policies sold, according to MoneySuperMarket data accurate as of March 2021

How much is business car insurance?

The exact cost of business car insurance will depend on the class of vehicle being insured and the nature of your business use. If you have to cover many miles, the insurer will see you as having a greater risk of an accident and so charge you a higher premium, for example.

The most popular business car to insure is also one of the cheapest. The Ford Fiesta on average costs £524to insure, the most expensive in the top 10 list is the Audi A3, which costs £689* on average.

3Based on all business policies sold, according to MoneySuperMarket data accurate as of February 2021

 

 

Car model Average premium3
Ford Fiesta £524
Ford Focus £520
Vauxhall Corsa £633
Vokswagen Golf £633
Vauxhall Astra £616

What’s considered business use for car insurance?

You need business car insurance if you’re using your car during work hours. Business use doesn’t include commuting to and from your usual place of work, but does include:

  • Commuting to different locations for work, to meet clients for example
  • High mileage for work purposes
  • Driving colleagues or clients around
  • Using your car for work related tasks, like driving to training days or dropping a parcel at the post office
  • Making deliveries or collections
Man in suit driving

What factors can increase my premium price?

  • Tick icon

    When and where the car will be driven

  • Tick icon

    Who will be driving the car

  • Tick icon

    How many business and social miles the car will do

  • Tick icon

    What the car will be used for

We're 100% independent, working only for our customers

Unlike some of our competitors, MoneySuperMarket is not owned by an insurance company. So we can offer the best value, with savings delivered straight to you.

We combine independence, so we can negotiate the best prices, with excellent technology, to find the best value products and services.

That makes us, in our customers' opinions, the best price comparison website.

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How to get the cheapest business car insurance?

Here are a few ways you could reduce the cost of your business car insurance:

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Car choice

Pick a car in a lower insurance group, as they’re safer on the road and cheaper to cover. Check what group your car is in with our car checker tool

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Drive fewer miles

Driving less miles means less time on the road, and the less likely you are to be involved in a road accident

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Pay annually

Insurers generally charge less if you pay annually rather than in monthly instalments

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Increase excess

Pay a higher voluntary excess - as long as you can still afford it – as this shows insurers you won’t bother with frivolous claims

 

 

Andy G Teasdale

Our expert says

"If you drive for work, it’s likely that you spend a lot of time on the road, meaning there is more risk of you being involved in an accident. Although it can be more expensive, business car insurance can give you the cover you need should anything happen, plus peace of mind "

- Andy G Teasdale, product manager of car insurance

If you have a company car, it’s likely you won’t need business car insurance as it should be insured by the company. However, it’s a good idea to check with your employer to make sure you’re fully insured.

 

Yes, if you use your car for work. Car insurance is counted as a ‘running cost’ of your vehicle, along with petrol, parking fees, servicing and repair costs, so you can claim it as an allowable business expense. You can’t, however, claim the cost of buying a vehicle.

Class 2 business car insurance allows you to add a named driver to your policy.

 

When you take out business car insurance, be careful about the additional features you choose – they do bolster your cover, but you’ll generally need to pay more for the extra protection. Depending on your provider, you’ll usually have the choice of:

·      Breakdown cover, which gives you access to roadside assistance if your car breaks down

·      Windscreen cover, which lets you claim for the cost of replacing a cracked or shattered windscreen

·      Legal cover, which will pay out for certain legal costs related to a claim by you or another party

·      Driving abroad cover, which insures you for taking your car overseas and driving in the EU

·      Courtesy car cover, which provides a replacement vehicle for you to use while yours is in repair

·      Multi-car cover, which lets you drive more than one car under a single policy

·      Personal accident cover, which pays out in the event that you’re injured or killed in a road accident

·      Replacement keys, which covers the cost of replacing a set of keys if they’re lost, damaged or stolen

·      Wrong fuel, which pays for repair costs if you accidentally top up the tank with the wrong fuel

 

You would have to disclose the claim, but it wouldn’t affect your no claims discount. It could however affect your premium.

 

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