If your car is used for business purposes then it will need to have business car insurance (as opposed to standard car insurance) or you may not be covered in the event of an accident. A standard car insurance policy is likely to cover you if you use your car to commute to your regular place of work (although it’s still worth checking) but if you regularly visit different offices, sites or clients (for example as a salesperson) then you will need business car insurance.
Business car insurance is typically more expensive than the normal vehicle insurance because insurance companies will deem a car used for business more at risk – the mileage driven is likely to be higher and the routes taken may be unfamiliar. Insurers usually offer three levels of cover for business car insurance depending on how the car is used and by who. You must truthfully tell your insurance company about how your car will be used so that you don’t risk invalidating your insurance.
Business car insurance differs from commercial insurance policies and company car insurance. Commercial car insurance is for drivers who use their car as their job, for example, a delivery driver or a taxi driver. Company car insurance is for cars that are owned or leased by a business for their employee and the organisation will normally take out and pay for a company car insurance policy on behalf of the employee.
Further reading:
- What types of insurance do I need?
- Operating a business vehicle
- Should I lease or buy my business vehicles?
