What class of use do I choose for car insurance?
Key takeaways
Classes of use are categories of how you use your vehicle that insurers use to assess risk
You need to select the correct class of use to avoid invalidating your insurance
Make sure you update your insurer if your usage changes so your cover remains valid
What does class of use mean in car insurance?
The term ‘class of use’ helps insurance companies categorise drivers into different brackets, based on how they use their vehicle. For example, social drivers, commuters, or commercial travellers. It's a way for insurers to assess risk and tailor your premium accordingly.
What are the different classes of use?
Social, domestic, and pleasure (SDP)
This class is for those who use their car for everyday life – think shopping trips, the school run, visiting friends and family or going on holiday.
Social, domestic, pleasure, and commuting (SDP+C)
SDP+C covers all the above, plus your journey to a single place of work.
If you drive to the train station and then get the train to work this journey is usually classed as commuting by insurers but it’s best to double check your policy or ask your insurer.
Personal business (SDPC+business)
If you travel to multiple locations for work then personal business class is a must. Personal business use is split into:
Class 1 business car insurance: Covers your car if you use it to drive between multiple work locations, or to visit clients or customers, such as a hairdresser or financial adviser
Class 2 business car insurance: Grants the same cover as Class 1 but allows you to add a named driver. If you work with another person and they use the car for work, they would also be covered
Class 3 business car insurance: Covers long-distance driving as part of your business use such as a door-to-door salesperson
Commercial car insurance
If you depend on your vehicle to do your job - for example, you’re a taxi driver, delivery driver or a driving instructor - then you should take out commercial car insurance.
This category is sometimes referred to as ‘carriage of goods for hire and reward’.
Is commuting the same as business use?
No, commuting is not the same as business use for car insurance.
Commuting covers you travelling to a single place of work whereas business use covers other journeys for business purposes such as travelling to other offices, attending a work event or visiting customers or suppliers.
How does class of use affect my car insurance premium?
Insurance providers calculate your premium based on a number of factors, including how you use your car.
If you’re a commercial driver, for example, you may face higher premiums because your car is on the road more often, potentially at peak times. More time on the road equals more risk, which usually equals a higher premium.
What happens if I have the wrong class of use?
If you select a lower class of use to keep your premiums down, you risk invalidating your insurance so it’s best to be honest with your car insurer about how you intend to use your vehicle.
Can I change the class of use on my car insurance policy?
Yes, if your circumstances change then you might need to change the way you use your car. For example, if you retire and you no longer need commuting or business use insurance or if you get a new job which is remote rather than office-based.
You should inform your insurer about any changes and they will reassess your premium.
How do I choose the right class of use for my car insurance?
Think about all of the different types of journeys you make and whether they would be considered social use, commuting, business or commercial.
Even if you only make one or two business trips a year you won’t be covered unless you have business use insurance. You can take out temporary business car insurance if you only need short-term cover.
How do I reduce the cost of my car insurance?
Class of use is only one factor which determines the price of your car insurance. Your age, your job title, the type of car you drive, and where you live all have an impact too.
If you’re worried about the cost of car insurance, here are some ways to lower your insurance costs:
Choose a car from a lower insurance group car: Cars are placed into one of 50 car insurance groups. Aim for a lower group to get lower premiums
Skip the extras: Consider whether you really need all the add-ons offered
Embrace technology: Black box insurance can help new drivers facing steep premiums
Shop around: Don't settle for the first car insurance quote you get. Use MoneySuperMarket to compare policies from our panel of leading lenders and find the best deal for you.
Author
Sarah Tooze
Car & Van Insurance Expert
Sarah Tooze has been a motoring journalist for more than 15 years, specialising in company cars and vans, and has won a number of awards during her career, including the Newspress ‘Automotive...
Reviewer
Beth Leslie
Senior Insurance Content Editor
Beth is an experienced writer and editor who specialises in financial and economic content. She is currently the Senior Insurance Content Editor for MoneySuperMarket. Beth is passionate about making...
