Business car insurance can be a slightly different animal than standard policies. Which is why it is always a good idea to think ahead. For anyone who uses their vehicle in connection with their work, it is necessary to look over the specifics. For example, you may be in danger of being under-insured.
Those who use their car for work may not have the cover they need.
Before you panic though, consider the following.
Since car insurance is a legal requirement, you will at the very least be covered under the law. However, without extra policies you may not receive the compensation you expect.
For this reason, business car insurance is necessary. Generally speaking, standard policies provide cover only for commuting and “social use”.
The Uses of Business Car Insurance
Business car insurance encompasses a huge range of uses. Remember, though: it does not include commuting to and from work. This is usually what a lot of insurance companies consider “personal use”. When it comes to the business variety, “business use” counts if you travel between different work locations.
In addition, visiting customers/clients is also considered “business use”. The same can be said if you provide transport to other employees and/or clients/customers. One example would be picking someone up from the airport.
On the surface, sticking with a standard policy may seem cheaper. You will still be at risk of invalidating your insurance, however. If something were to happen while on a business run, your provider may refuse to compensate you.
Be prepared and know what you need
When you sign up for business car insurance, you’ll have to answer a number of questions. It generally helps to have the answers already prepared. In all cases, your insurer will want to know the exact nature of your work. In addition, you’ll have to provide information on how much time you expect to spend behind the wheel during work hours.
Other information will also be necessary. You may have to estimate the number of work-related miles you expect to clock up.
Naturally, all of this can be difficult to figure out. But at the very least it is good to give them some kind of estimation.
Business car insurance and different levels of cover
This is where things can get even trickier. There isn’t one, single type of business car insurance. In fact, there are plenty of different options. So, it does mean taking the time to look through them and see which one best fits your needs.
Of course, to make things easier we’ve researched the most common categories your insurance will likely fall into.
- There is a “business use by you” policy which covers both main drivers and their spouses (optional). Driving is done in connection with the person’s business, as well as driving from their place of work. Many people who take this type of cover tend to be salespeople.
- “All drivers” isn’t very different from the above. The main difference is that you can add as many people as you need to the policy.
- Those who have driving as a permanent part of their jobs may want to consider commercial travelling policies. These policies cover those who will spend a considerable amount of time on the road.
You shouldn’t decide on business car insurance straight away. In fact, it makes sense to take your time. Don’t just consider comparison portals, either. In fact, many insurance brokers (particularly those who specialise in this type of cover) can offer better deals. So, if in doubt, make sure to talk to one of them!