If you use your car in conjunction with your job, standard policies may not provide the security you think you need.
Anyone whose job requires them to drive their own car for the purpose of their work will have to pay for business car insurance. This is different from the standard policy, which only covers social use and commuting.
Business car insurance can cover a wide range of uses, such as traveling between different workplaces, visiting customers or driving around other employees. It’s all, in fact, on behalf of the company.
Although you’re likely to pay higher premiums for business car insurance, don’t be tempted to run the risk of sticking to standard insurance coverage. This could contribute to the invalidation of your scheme.
Know what you want to do insurance car
If you apply for business car insurance, will insurer will want answers to a variety of key questions, so you need to have your answers ready.
For example, they’re going to want to know the nature of your work, the amount of time you’re going to be behind the wheel, and how many working-related miles you’re likely to be clocking up during the average year.
This may be difficult to gage, of course, but the estimate will give them an idea of how much time you’re going to spend on the road.
Understand the different levels of coverage
Unfortunately, there is no standard insurance scheme for a business car. There are a number of options and it is up to you to decide which type is best suited to your specific needs.
Most policies fall into one of the following three categories: business usage by you-these policies may cover the main driver-often with the option of adding a spouse-to drive in connection with their business, including away from their normal place of work. For example, this could be a salesperson.
Business use for all drivers – such offer the same level of coverage as the above option, but with the additional benefit that more than one driver can be included in the policy.
Commercial travel policies – these can be applied to people who drive as a permanent part of their work. Such individuals can spend a lot of time on the road, and this is likely to be reflected in the policy price.
Because these policy types are complicated and are made up of a lot of different factors. It is therefore best to check the terms and conditions and confirm directly with the insurer that you are fully covered by the policy before you purchase.
Get a good deal In order to get a competitive price, you need to compare a selection of quotes to find the most cost-effective option for you.
Also, talk to others who use their cars in their day-to-day work to find out which insurers you should consider.
And don’t be afraid to negotiate with the insurer to get the best deal-they all have some flexibility in the premium. Remember, this is an increasingly competitive area, and there is no shortage of providers.
Cutting the cost As well as the business itself, the cost of the cover would depend on the car being driven, so it’s worth considering a low-cost car with a small engine. Not only will the running costs be lower, but they will also tend to benefit from lower premiums.
Other ways to reduce your premium include installing security devices such as immobilisers, steering locks and tracking systems. Take a look at our guide for more tips on saving your car insurance money.
Car insurance levels of use listed above
When you get a car insurance quote, you’re going to be asked about the class of use you need – that’s what you’re going to use the car for. The use class tends to have an impact on the risk perceived by the insurers and could have an impact on the premium you pay.
For example, a business user can be seen as a higher risk than a purely social and domestic user. This is because business users are likely to spend more time on the road, including heavy traffic and unfamiliar routes, which will increase the likelihood of third-party claims.
So, if you have the wrong class of use on your policy, you may find that your insurance company refuses to make a claim.