Business Use Car Insurance – 10 Top TipsLast modified:
Many drivers are driving without adequate insurance because they don’t realise what ‘business use’ entails
Here are 10 useful facts about business use insurance to help you decide if it applies to you.
Many UK drivers are driving with the wrong type of cover, simply because they don’t understand what constitutes ‘business use’.
If you have an accident whilst driving for business purposes, standard vehicle insurance will not cover you.
If you are found to have the wrong type of vehicle insurance your insurer may invalidate your policy and you could even be prosecuted for driving without insurance.
Business use for car insurance is not just for company cars. It applies to any vehicle used for business mileage, so if you are able to claim mileage or receive a car allowance from your company, chances are you will need to insure your car for business use.
Vehicles owned and insured by employees and used for work are known as ‘Grey Fleet’ vehicles. It’s estimated that around 20% of Grey Fleet vehicles are not correctly insured.
Under health and safety law, employers have the same duty of care to staff who drive their own vehicles for work as they have for employees who drive company vehicles.
Drivers who use their cars for business mileage are statistically more likely to be involved in an accident, since the more time spent behind the wheel results in greater risk.
You will need insurance for business use if you use your car for any of the following:
- Visiting customers
- Driving between business locations
- Driving to meetings
- Running errands
- Driving colleagues or clients,
- Delivering or collecting goods
There are 3 main classes of business insurance:
Covers you for any work related mileage.
The same cover as Class 1, with the option to add additional drivers.
Designed to cover people who do a lot of driving in relation to their job and so spend a lot of time on the road, for example sales people.