Business Car Insurance
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Why Compare Cheap Business Car Insurance Quotes With SimplyQuote
When choosing the perfect business car insurance, the options can seem endless and confusing. Add to that the different variables that affect the price and suitability of these policies and the decision seems even more difficult.
That’s where SimplyQuote steps in.
The online comparison tool streamlines this entire process, allowing you to secure your perfect business car insurance policy within minutes! Not to mention, you’ll also receive invaluable peace of mind knowing that you’re protected while out on the road.
What Do You Need To Get A Business Car Insurance Quote?
To get a business car insurance quote, we just need a few details:
- Your details: Name, age, home address, driving history, driver’s licence
- Vehicle details: Make, model, year, mileage, registration number
- Business details: Business name, business address, average distance you will be driving, how often you will be driving, where you will be driving, the nature of your business
- Insurance requirements and add-ons: Class 1, 2 or 3
- Claims history
Why Do You Need Business Car Insurance?
You need business car insurance if you drive your own vehicle for business purposes, apart from commuting to and from work. This does not apply if you drive a company car.
If you drive a company vehicle your company will usually sort out this insurance for you – usually part of a commercial fleet insurance policy.
It is a legal requirement in the UK for all drivers to have motor insurance. If you don’t have the right cover for business-related driving in your car insurance policy, you will invalidate your insurance and can’t make a claim.
It’s worth mentioning that standard car insurance doesn’t cover business-related driving.
This is because business driving is considered “higher risk” than everyday driving as you’ll usually be on the roads at peak hours when there’s a lot of traffic. More time on the road stacks the odds against you, potentially having a higher chance of being in an accident.
Note:
- If you’re unsure whether or not your business has arranged company car insurance for you, then you should ask them before you start driving the company car.
- It’s always best to check with your insurance company if you’re uncertain about business car insurance. Using your car for work purposes without the right cover in place means you’ll be liable for the costs of any damages.
Looking for cheap Business Car Insurance? Get your quote today!
Get QuotesWhat Does Business Car Insurance Cover?
What’s covered by business car insurance is determined by the level of cover you opt for and varies between insurance providers. A business car policy includes the same cover as a standard car insurance policy, including:
- Accidental damage
- Public liability
- Third-party cover
- Day-to-day driving (i.e. social, domestic and pleasure journeys)
- Commuting to and from work
But includes protection for certain work-related driving, such as:
- Transporting goods or business equipment
- Drive colleagues or business contacts around
- Run work-related errands, such as driving to the bank or post office
- Driving to business conferences, courses, exhibitions or company away days
- Drive between different workplaces, premises or job sites
- Drive to business meetings or to visit clients
What is not covered?
Certain work-related activities will not be covered by a business car insurance policy, such as:
- Driving a taxi – taxi drivers need taxi insurance
- Professionally instructing people on how to drive
- Regularly using your car or van to deliver goods (if you’re a delivery driver)
- Costs incurred due to negligence (e.g. leaving the keys in the ignition and the vehicle is stolen)
- Driving under the influence of drugs/alcohol
- Uninsured driver/unnamed driver using your car
What vehicles does business car insurance cover?
Generally speaking, any personal car used in a business setting will be insured under business car insurance.
If you want to be covered as a driving instructor or a delivery driver, you’ll need to take out commercial car insurance, which will provide you with the necessary cover. If you operate taxis for a living, you’ll need taxi driver insurance.
Note: It’s important to remember that commercial car insurance is different to business car insurance as people often think they’re the same.
What Are The Benefits Of Business Cover For Your Own Vehicle?
Here are a few benefits of business car insurance:
- Peace of mind knowing your private car is protected while used for business errands
- Save money on premiums as you ‘bundle’ car insurance – for both private and business use – under one policy
- Convenience of having all motor car-related insurance under one policy with one renewal date
What Are The Types Of Business Car Insurance?
Three classes of business insurance policies are available.
Class 1
This type of business car insurance covers your car when visiting clients and driving to different work locations. For instance, you’re a care worker visiting various patients at different nursing home locations.
It tends to be the cheapest type of business insurance.
It won’t cover deliveries or door-to-door sales.
Class 2
This type of business car insurance is slightly more expensive than Class 1 cover but allows you to add a named driver to your policy – typically a co-worker.
Class 2 also does not cover deliveries or door-to-door sales.
Class 3
Class 3 is the most expensive type of business car insurance, also known as “commercial travelling insurance”. It’s the best option for salespeople who travel around the country.
As the name suggests, it includes cover for commercial travelling and travelling long distances.
It won’t cover commercial merchandise like wholesale deliveries but will pay out if sample stock is damaged.
Note: All classes include social, domestic and pleasure (SD&P) use.
What Levels Of Business Car Insurance Are Available?
Like standard car insurance, business car insurance has three levels of cover available for UK drivers. All vehicle owners driving on UK roads – whether for business or pleasure – need third-party cover (TPO) at least.
1. Third-party only (TPO)
Third-party only is the most basic type of car insurance and only covers you for damages that you cause to a third party, including injuries and property/vehicle damage.
2. Third-party, fire and theft (TPFT)
Third-party, fire and theft policies will cover you for damages caused to a third party as well as theft and fire damage to your own car. However, you will not be covered for damage to your car in the event of an accident.
3. Comprehensive
Comprehensive cover means that your business car insurance policy will cover you for any damages caused to a third party or your own car in an accident. It includes basic TPO and TPFT cover.
What Add-Ons Can You Get For Business Car Insurance?
There are many extras you can add to your business vehicle insurance policy, from courtesy car cover and breakdown assistance to EU cover – and beyond.
Let’s take a closer look:
Courtesy car cover
This will cover the costs of a replacement vehicle whilst your own vehicle is being repaired or replaced. It means you can continue to perform work-related activities until your car is ready.
Breakdown cover
Having breakdown cover in place means you’ll be covered for roadside assistance if your car breaks down.
No claims discount protection
Your no-claims bonus is protected even when making a claim.
Replacement keys cover
This covers the cost of replacing car keys if they’re stolen, damaged or lost. Some insurers won’t pay out on these policies if you lose the keys yourself, so it’s best to check with them before you take out replacement keys cover.
Motor legal protection
This policy helps cover the costs of legal fees related to third-party claims or disputes.
Multi-car cover
This policy allows you to drive more than one vehicle under a single business car insurance policy.
Personal accident cover
Having this type of cover means your insurer will pay out if you’re injured or killed in an accident.
Windscreen cover
This optional extra means you’re covered if your windscreen is cracked or broken. You’ll be covered for the costs of repairing the windscreen or replacing it if necessary. Please note, that this cover may be included in fully comprehensive plans and is best to check with your insurer beforehand.
International driver insurance (EU cover)
This means you’re fully covered to drive abroad in EU countries. It’s a particularly good idea if you regularly drive across the UK border for work.
Temporary business insurance
Some insurers may offer temporary business car insurance if you use your car intermittently for business purposes. Let’s say you occasionally need to travel between different locations or pop to the post office or bank to cover a co-worker who is on leave.
Temporary business car insurance is a flexible, short-term cover ranging from one hour to 30 days.
How Much Does Business Car Insurance Cost?
The price of basic business insurance for private vehicles ranges between £475 and £680 per year. Class 3 comprehensive plans can reach up to £1,857.
However, the final price tag is based on several factors such as the type of vehicle you drive, where you’re driving your car and your claims history.
In comparison, standard social and commuting car insurance is around £466 annually.
How are business vehicle insurance premiums calculated?
- Type of vehicle – make, model, emission levels, age
- Drivers age – drivers over 25 tend to have cheaper premiums
- The security of your car – is it equipped with immobilisers and/or parked in a secure location overnight?
- Your UK location – insurance tend to be more expensive in areas with a high crime rate or lots of traffic
- Your annual mileage – the more you drive, the higher the premium
- Your claims history
How Can You Get Cheaper Business Car Insurance?
Try some of these handy tips to make your business car insurance cheaper:
Temporary business car insurance
As mentioned, if you only need to use a car for work-related purposes occasionally, it will work out cheaper to take out temporary cover for the period you’ll be driving. Many insurers offer this, usually ranging from one hour to 28 – 30 days.
Black box policies
This type of policy is where your insurer installs a telematics device into your car to monitor your driving habits. If the data shows you’re a responsible driver, your insurance premium will be reduced over time.
Pay yearly
Many insurance companies will charge you less for your policy if you pay annually instead of monthly. Annual payments also eliminate monthly interest rates.
Higher voluntary excess
Most insurers will give you the option of paying higher excess to reduce your insurance premium. However, this does mean that you will have to pay more in the event of an accident.
Choosing a car in a low insurance group
Cars that are in a lower insurance group are considered to be safer, and this means that they’re cheaper to insure. The lowest is Group 1, and cars within this group are usually cheaper to insure.
Reduce your mileage
If you drive fewer miles, you will be less likely to be involved in an accident, and your insurer will usually lower your insurance premium.
Compare quotes
Make sure to get several different quotes from a few insurers so you can compare and see which is the most affordable option for you.
Secure vehicles
Keep vehicle(s) in a safe and secure location when not in use. This includes a locked garage, private driveway, installing alarms/immobilisers and CCTV camera surveillance.
Don’t over insure
Only choose the class cover needed for your business-related activities and keep policy extras to a minimum. Essentially, only pay for the cover you actually need.
How To Compare Business Car Insurance Quotes With SimplyQuote
Comparing business vehicle insurance quotes with SimplyQuote is easy and hassle-free:
- Fill in the quick questionnaire with personal, vehicle and business-related driving details.
- Choose the policy extras you want to include.
- Compare quotes with our easy filter options, narrowing your search to the insurance premiums that meet your specific business cover needs.
- Save money (almost) instantly and get the best deal today!
Frequently Asked Questions
Business car insurance is a type of motor vehicle insurance that covers your car if you’re using it for work-related purposes. These business activities may include, visiting clients, going to the bank or driving between different sites as part of your job. It does not cover taxi or delivery drivers.
No, normal car insurance will not cover you for business use. You will need specialised motor vehicle insurance to use your private car for business purposes.
There are three types of standard car insurance, namely:
- Social, domestic and pleasure (SDP) – covers you for personal driving (e.g. visiting friends)
- SDP and commuting (SDP & C) – covers you for commuting to and from work.
- SDP & C and business use – covers you for driving for domestic, leisure and social reasons, commuting and using your car at work.
The short answer is: it depends.
If you drive business vehicles, your employer usually covers these cars (and insurance) within their commercial car insurance policy, typically as fleet cover. If not, either your employer will reimburse you for your business car insurance in full or contribute towards it.
If you’re self-employed, you’ll need to cover the costs yourself.
While both are a type of vehicle insurance used for business purposes, there are slight differences.
- Commercial car insurance is needed if your vehicle is an integral part of day-to-day business operations (i.e. you can’t perform your job without your car). This typically applies to salespersons who spend most of their time on the road. You’ll also need commercial car insurance if you’re a taxi driver, driving instructor, delivery driver or operate a fleet of commercial vans/trucks.
- Business car insurance is when you use your car for business activities from time to time (i.e. you can perform your job with or without a vehicle). This is generally needed if you occasionally drop off samples, drive between different sites or pop out to the bank for your employer.
Yes. HMRC considers business car insurance an allowable expense alongside breakdown cover, parking fees, fuel costs, servicing and repairs, licence fees and hire charges. So, if you’re self-employed and use your car for work, you can apply for tax relief.