A standard car insurance policy covers your car for domestic and personal use. Most policies also automatically cover your car if you commute to and from a regular place of work, including for example parking daily in the same station car park.
- you drive to several different offices or work sites
- a colleague regularly takes your car to visit clients.
- you drive hundreds of miles a week for business purposes.
...you will almost certainly need business car insurance. It is often more expensive than standard motor insurance, but it is important to get the right cover for your needs.
A motorist who drives a vehicle for business as well as pleasure is deemed to be more risky. They will usually cover more miles sometimes in heavy traffic and on unfamiliar roads. The chances of a claim therefore increase. Don’t be tempted to lie in an attempt to bring down the cost of insurance. When you apply for business car insurance quotes, the insurer will ask the usual questions about your age, postcode, and the make and model of the car. But you will also have to give details about your business and when and why you drive the vehicle for work. If you are dishonest, you are committing an offence and it could invalidate your policy. Your insurance would not then pay out in the event of a claim.
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
The next level of business car insurance generally covers the policyholder and 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 cover.
Commercial car insurance
Business car insurance is not the same as commercial car insurance, which is aimed primarily at motorists who use their car for commercial purposes such as a taxi or to make deliveries. It is important to remember that definitions of the different classes differ between insurers.
If you drive a company car it should be insured by the company that owns or leases the vehicle.