What is business car insurance?
This is insurance cover for people who drive their own car for the purposes of their work. It is different to a standard car insurance policy as it covers any travel that is on behalf of the company.
Why you need business car insurance:
If you use your car for your job for anything other than driving to a single place of work, you may need business car insurance.
Company cars and work cars should be insured by your employer, but it’s always worth checking.
You need to be honest and accurate about your level of business use, as this will help you compare appropriate policies.
What business car insurance may cover:
- Going to the bank
- Driving to the post office
- Driving to another office
- Attending company events using your own car
What type of factors affect business car insurance?
The nature of your work. Driving to some places may be considered to be high-risk by some insurance companies, so the premium that is charged is dependent on one such factor.
The amount of time you’ll be behind the wheel.
How many work-related kilometres you are likely to clock up during an average year.
Keep in mind that there isn’t one standard business car insurance policy, as each individual has unique needs.
Don’t be afraid to bargain with an insurer to get the best deal. You are able to negotiate with a car insurance provider to be able to get a better deal.
The cost of the cover will also depend on the car being driven. If you are driving an expensive, high performance car, chances are that your business car insurance premiums will be quite high.
It’s important to install security devices like immobilisers and tracking systems. By doing this, you could be charged lower insurance premiums.
Typical categories include:
- Private and occasional business use
- Private and business use
- Commercial travelling policies