Standard car insurance cover is for social, domestic and personal use, which basically means that the cover is for general everyday use i.e. for driving to the shops etc. In most cases, the standard car insurance also covers the commute from and to the regular location of work.
But if perhaps you drive between multiple office or have to travel hundreds of miles a week to tend to clients, then you should get a business car insurance. Business car insurance is typically more expensive but it’s important to have the appropriate level of cover.
Motorists who use their vehicle for both business and personal use are deemed to be a higher risk and hence the premium is higher too. The risk is higher because it is likely they will cover more miles, will be on unfamiliar roads and often in traffic.
Whilst this may tempt you to withhold information to your insurance company about the business aspect of the vehicle use, it important to remain true and accurate, else your policy may be considered void/invalid.
Different groups of business car insurance
The level of cover you get from each insurer can be varied so it’s very important to look at the terms and conditions, such as if you drive to work then make sure the social domestic and pleasure definition covers you with the insurer.
If you drive your car between multiple sites then you will need class 1 business car insurance. This policy also includes your spouse, but this would not include business activities for any other named drivers.
The next level of business car insurance covers the policyholder and a named driver who uses the vehicle to travel between work/office locations. Motorists who travel extensively in the car for work related activities will need class 3 business insurance.
Business car insurance vs. commercial car insurance
Contrary to belief, there is a difference between business and commercial car insurance, which is more aimed at motorists such as taxi drivers and delivery personnel. Also, a car used for business is not the same as a company car. A company car is insured by the company that owns or leases the vehicle. Once again, it is important to note that the definition varies from one insurer to the next.
Cheap business car insurance
Given the high costs of business car insurance, it is important to compare to make sure you are getting the best possible deal. To add, you can even select your vehicle depending on the insurance category it is place in- for example a category 1 car is cheaper to insure than a category 50 car.
Moreover, you can update or improve the security features of your vehicle by perhaps adding an immobiliser or a car alarm; if possible you should even park the car in a garage which reduces the risk of theft and damage. The reduction in the risk will also reduce the cost of the insurance premium.
In nearly all instances, insurers offer motorists no claims discounts too. So if you haven’t claimed from your current or previous insurers for at least a year, than the new policy quote will take that into account and hence an appropriate level of discount will be applied. The no claims discount is transferable between insurers but the level of discount is not constant between insurers.
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