Business Car Insurance Explained

Mercedes carsIt’s said that ‘the first rule of business is to protect your investments’ and that means making sure you’ve got the right insurance. If you use your car for business, you’ll know that cover can be costly, but with help from the right broker; it needn’t break the bank.

Standard car insurance is generally limited to ‘social, domestic and personal use’ with some policies extending cover to ‘commuting’ provided you’re travelling to the same place of work every day. If you use your car in any other way that’s connected with work; you’re likely to need specialist insurance.

Understanding exactly what constitutes ‘business use’ can be tricky and evidence suggests there are plenty of motorists who have unwittingly opted for the wrong type of cover. Business car insurance isn’t just for salesman who spend hours crisscrossing the country, but includes: travelling to meet clients, giving colleagues lifts, running work errands and commuting to different sites. If you are in any doubt; get in touch with your insurance broker, as fudging the facts could invalidate cover.

Calculating insurance premiums is all about calculating risk, and because business drivers represent a greater risk; they can expect higher premiums. Business use tends to mean more miles on the clock, travelling at peak traffic times and often on unfamiliar roads. In fact, Department for Transport statistics suggest that ‘more than a quarter of all road traffic incidents may involve somebody who is driving as part of their work at the time’.

Business car insurance policies vary from provider to provider, but they generally fall into three categories: Class One covers the named policyholder (and a spouse) for occasional driving to multiple locations. However, it won’t provide cover for extensive use such as door-to-door sales or work-related deliveries. Class Two provides the same level of cover with the addition of multiple drivers. Class Three covers extensive car use to multiple locations. It’s worth noting that business car insurance is not aimed at professional drivers who will need a commercial policy.

Getting a business car insurance quote is much like getting a standard quote, although your broker may want to know a little more about your driving habits including: the nature of your work, time spent driving and annual work miles. Similarly, you can drive down the cost of business car insurance in much the same way you can cut standard car cover, by carefully considering: car model and engine size, vehicle security, claims excess and No Claims Discount. If you have more than one car to insure it’s worth considering a ‘multi vehicle policy’ but you may be surprised to read that a good broker could make substantial savings by carefully sourcing individual policies.

To find out more about visit our business car insurance pages or Tel: 0161 874 4182 to speak with a member of the Quoteline Direct team.

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