BUSINESS CAR INSURANCE

What does business car insurance cover?

Business car insurance covers you using your own car when you need to use it for business purposes. It could be time to consider adding business use to your car insurance policy if you do any of the following:

• Drive to meet clients outside your place of work
• Drive between multiple work sites
• Drive other members of staff in your car
• Drive to a training course or company away day

It’s important that you are open about how you’re planning to use your vehicle when you request a quote, as if you don’t have the right level of cover and you are involved in an accident, your claim may be invalid.

Who needs business car insurance?

If you are using your own car to do your job, other than commuting to and from a single place of work, you will need business car insurance. If you are driving a car that belongs to your employer, you will be covered by company car insurance instead.

When you drive your car for business, you won’t be covered by a standard car insurance policy unless you have chosen to add business use.

You can add business car insurance cover when you are looking for a new policy, or it can be added on to your current policy when your circumstances change.

Who pays for business car insurance?

Business insurance cost is dependent on multiple factors, such as:

• What type of work you use the car for
• How many miles and where you’ll be driving
• Any goods or equipment that you’ll be carrying

If you’re self-employed, you can claim for car insurance as an allowable business expense in your self-assessment tax return.

If you drive your own car for work purposes and you’re employed, companies typically reimburse their staff for business miles, an allowance that should include costs of wear and tear and extra costs of insurance. However, it is your responsibility as the driver to make sure you have the right car insurance cover in place.

Employers are legally responsible to ensure all vehicles used for work purposes are correctly insured.

Whoever pays for your business car insurance, it’s important that you have the right cover in place before you start to use your car at work.