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Business car insurance

When you need to insure your private car for work, use business car insurance cover
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Get 3-year fixed price* business car insurance for extra protection when you’re working

*If nothing changes, T&C apply

If you use your car for more than commuting to your place of work, you need to consider the safety of yourself and any passengers when it comes to business use. We explore the things to consider when you’re looking for business car insurance cover.

What is business car insurance?

Business car insurance provides cover for you and your car if you use it for work. A standard car insurance policy may cover you for commuting to and from your workplace – but not for times when you use your vehicle for business purposes.

For anything more than travelling to and from a permanent place of work, you need to consider additional 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.

What types of use are there for car insurance?

Social, Domestic and Pleasure (SDP) is the base class of use, and then Saga offer three further choices. Details of all four classes of use are listed below:

  • Social, Domestic & Pleasure (SDP) – covers day-to-day use by yourself or any named drivers. This does not include any commuting to or from any place of employment, or any business use.
  • SDP + Commuting – covers you and, if named on the policy, your spouse or domestic partner for social use and commuting to and from one place of employment each.
  • SDP + Personal Business Use – covers you, and if named, your spouse or domestic partner, for social use, commuting to one or more places of employment, and in connection with each of your businesses or professions (but not for soliciting orders).
  • SDP + Business Use – covers you and named drivers for social use, commuting to one or more places of employment, and in connection with each of your businesses or professions.

When you’re looking for business car insurance quotes, you’ll need to choose either SDP + Personal Business Use or SDP + Business Use.

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.

Our policies are underwritten by several different insurers. We handpick these companies very carefully, and make sure they have the same high standards of quality and service as we do. If you buy a policy from us you’ll see the name of the underwriter in your policy documents.

Find out more when you get a quote

What isn’t covered by business car insurance?

Business car insurance will include cover for all the usual activities that a standard car policy covers. It will also share the same exclusions – for example, you won’t be covered for wear and tear or if your belongings, such as your laptop or briefcase, are stolen when you leave the car unlocked.

In addition, business car insurance may not cover goods, samples or tools carried in connection with any trade or business.

If you’re driving people around to make money you will need to consider taxi insurance, and if you use a van to commute to work or as part of your job you will need commercial or business van insurance.

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.

Find out more and get business car insurance quotes