Business Car Insurance Guide
Whether you have a company car or you drive your own personal vehicle, if you are driving for business purposes, you must have business use covered on your policy.
Your personal car insurance policy will not cover you in the event of an accident if you are using your car for business without your insurer’s knowledge. They could also cancel your policy entirely, causing deeper risks and problems that can be easily prevented.
If your business has two or more vehicles, you could qualify for a mini fleet policy, so get in touch with us today for a free quote.
What is business car insurance?
Business car insurance is another type of car insurance aimed specifically at companies who operate company cars.
A business car insurance policy will allow you to insure a car in the company name rather than in a personal name. In this instance, the company is the policy holder and therefore any claims history will attach to the company and also the company, as the policy holder, will earn any no claims bonus due, rather than the individual.
A business car insurance policy will more likely allow greater flexibility of drivers than a personal car insurance and you will usually be able to open the insurance up to cover any authorised and licence driver, rather than just naming drivers.
If you do not own any company vehicles but your employees use their own vehicles for work purposes, or if you are an employee and are expected to use your car for work, then you must ensure that the insurance policy covering the vehicle includes the extension of business use.
As an employer, you are exposed to claims if your employees do not have the correct business use noted on their insurance. If, for example, an employee didn’t have business use and they had an accident, their own insurance would refuse to cover the claim and you would likely find that the claim was directed to you, the business owner.
Therefore, it is important that the insurance documents of employees are regularly checked to ensure that they have adequate cover in place. This would include checking their driving licences too.
Although, if you use a vehicle such as cars, vans, or HGV’s as part of your work then you’ll likely need a specific commercial insurance policy such as HGV Fleet Insurance or Van Fleet Insurance. This is relevant for taxi drivers, couriers, HGV drivers, as examples.
Tasks relevant to business car insurance may include:
- Visiting customers or clients at a different location than your business premises;
- Travelling to different business locations – even if they are your businesses’;
- Driving to the bank or shop for work purposes;
- Transporting other employees to complete business duties.
Can you privately insure a company car?
It is unlikely that any insurer would allow you to privately insure a company car as there needs to be an insurable interest in place and, because you do not own the vehicle, it would be hard to show that an insurable interest exists.
If the vehicle is leased, you’re much more likely to be able to privately insure it, as long as the lease is for a minimum of 12 months. The lease will be in your own name and therefore there is an insurable interest as you will be financially responsible for the vehicle.
It’s best to have a business fleet policy put in place to ensure you have the maximum coverage for all your business vehicle needs.
When do you need business car insurance?
If you drive or have drivers that use cars or other vehicles for work purposes, you will need business car insurance. A personal car insurance policy is unlikely to provide the cover you need for your business.
Business purposes can include:
- Taxiing other employees or business partners
- Making deliveries or collections
- Running daily business errands
- Travelling to business meetings or business sites
What does business car insurance cover?
Business car insurance covers a wide variety of uses beyond a standard vehicle insurance policy. With a business policy, you’re protected for a range of typical day to day business uses beyond social domestic and pleasure use and commuting.
This could include attending meetings, visiting a new client or collecting samples or even delivery of goods.
What are the types of business car insurance?
Typically, the classes of use to consider may fall into the following:
Social, Domestic and Pleasure use – This would allow a policyholder to commute to and from one permanent place of work.
A business car insurance policy would not be recommended in this instance, it’s likely you’d need to insure your fleet vehicles individually to obtain the best premiums.
Class 1 Business Use – This would allow the policyholder to travel to more than one permanent place of work, or visit a customer/client. An area manager, for example, may require this use.
Class 2 Business Use – This would allow the same use as Class 1 but for additional drivers named on the policy too.
Class 3 Business Use – This would provide the widest cover available allowing long-distance travelling for those that need to travel across the country, racking up high mileage.
You may also want to consider fleet breakdown cover too, which we can arrange to run alongside your fleet business car insurance.
Find out more information about commercial car insurance and get a quote.
Depending on the size of your company, the minimum number of vehicles needed for a fleet is two.
Feel free to get in touch with our expert team today to see how business insurance could help your fleet.
How much does business car insurance cost?
Business car insurance can be more expensive than your typical cover, however, it’s invaluable protection if you are using your vehicle for work purposes. The cost can depend on the type of insurance you require.
Other factors, which will be discussed in order to receive a quote, include; occupation, amount of travelling and distance required, mileage and type of car/s.
Does business car insurance cost more?
Generally, business car insurance does cost more solely because of the greater risks and higher liability limits on the policy. Drivers of business vehicles also tend to drive more miles than the average driver, and at busier periods of the day too.
The cost of your policy will all depend on the class of the vehicles being insured and the nature of your business use.
If you’re unsure about the class of your vehicles there’s no need to worry. At FleetCover, we’ll talk you through all your options and find out which class of insurance is right for you.
Speak to expert today about business fleet insurance
0345 224 5329How can I get cheaper business car insurance?
One of the most efficient ways to get business car insurance is by having a fleet insurance policy – this includes two or more vehicles. As the experts in all varieties and vehicles of fleet insurance, you’ve come to the right place!
To discuss your requirements please get in touch with one of our expert, friendly team members today.
Business Fleet Insurance with FleetCover
At FleetCover, we are aware that every business has their own specific needs when it comes to fleet insurance, which is why we take the time to fully understand your situation.
If you’re interested in business fleet insurance for your company, contact us today to see how we can help you.
