{"id":323,"date":"2025-02-17T13:17:12","date_gmt":"2025-02-17T14:17:12","guid":{"rendered":"http:\/\/portraitsbylorie.com\/?p=323"},"modified":"2025-02-26T16:45:00","modified_gmt":"2025-02-26T16:45:00","slug":"do-i-need-business-car-insurance","status":"publish","type":"post","link":"http:\/\/portraitsbylorie.com\/index.php\/2025\/02\/17\/do-i-need-business-car-insurance\/","title":{"rendered":"Do I Need Business Car Insurance?"},"content":{"rendered":"
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Nearly everyone with a personal car uses it to travel to work, and a fraction of those people use it during work hours for business-related reasons. Did you know that these same people, in the event of an accident, may not be able to file a valid claim? Using your personal car for business purposes means that you require business insurance to protect yourself in case of an accident.<\/strong><\/p>\n

But what constitutes business-related driving? This article will explore this question, as well as the different classes of business car insurance, how to choose the right policy, and more.<\/p>\n

What constitutes business-related driving?<\/strong><\/h2>\n

Business driving is defined as using a vehicle for work-related purposes other than simply commuting to and from one fixed workplace. In the event of an accident, if you use your personal car insurance to make a claim, your insurance provider will investigate and look for evidence that details the particulars of the event. If they find that you filed this claim during business use, they will likely reject your claim.<\/p>\n

The reason there is a distinction between personal car insurance and business car insurance is simple – business driving happens consistently, whereas personal car usage is a lot less frequent.<\/p>\n

If you use your vehicle in any of the following common examples of business driving, you will need business insurance to ensure coverage:<\/p>\n

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  • Travelling between multiple locations for work\u2014<\/strong>If you travel from your place of work to a client, supplier, contractor, or any other place related to and in the service of your business, you are using your vehicle for work-related purposes.<\/li>\n
  • Transporting goods or equipment – <\/strong>We highly recommend business car insurance if you’re delivering goods to customers as a courier or delivery driver, or simply moving tools or other tradesman items between work locations.<\/li>\n
  • Carrying passengers for work – <\/strong>Work-related driving extends to the simple transportation of clients, co-workers or passengers for work purposes.<\/li>\n
  • Door-to-door sales – <\/strong>If you use a vehicle to travel when conducting door-to-door sales visits, or any other type of field agent work.<\/li>\n
  • Self-employed and freelance work –<\/strong> For self-employed individuals who are carrying out freelance work, it may be worthwhile to consider business car insurance.<\/li>\n
  • Taxi drivers or other private hire services – <\/strong>Your business car insurance covers passenger transport for work purposes, but you may need more specialised policies that cater to roles like taxi drivers, ride-hailing operators or chauffeurs.<\/li>\n<\/ul>\n

    Whilst it’s fair to reject the idea of purchasing business car insurance for your own car if your work-related driving is infrequent, keep it in mind if your job role changes for any reason.<\/p>\n

    \"Cost<\/p>\n

    What kinds of business car insurance are there?<\/strong><\/h2>\n

    Several types of business car insurance cover different needs:<\/p>\n

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    • Temporary business car insurance – <\/strong>This kind of car insurance covers occasional work use and one-off business trips, used for employees and freelancers who don’t regularly use their car for work purposes. These policies can last anywhere from a single day to a few weeks and are usually purchased for seasonal or temporary changes to business functions.<\/li>\n
    • Commercial car insurance – <\/strong>This type of car insurance applies protection for vehicles that are primarily, or exclusively, used as business vehicles. Common examples include taxis and delivery vans. People who often purchase those types of insurance typically rely on the vehicle’s use for income. Check to see if your chosen package includes public liability coverage.<\/li>\n
    • Standard business car insurance – <\/strong>Day-to-day driving that includes occasional business use. This is best used for employees, or sole traders, who are in roles or industries that commonly feature travel.<\/li>\n
    • Comprehensive business cover – <\/strong>Comprehensive cover includes full protection, such as accidental damage, theft, and liability. This is a favourite for businesses that use high-value vehicles or travel in large part during their role.<\/li>\n<\/ul>\n

      Standard business car insurance – business class<\/strong><\/h3>\n

      Any type of business car insurance will be subject to a classification of use, which details the purposes for which vehicles will be insured.<\/p>\n

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      • Class 1 business car insurance – <\/strong>This covers occasional business use.<\/li>\n
      • Class 2 business car insurance – <\/strong>This covers class 1 business car insurance and allows named drivers (employees, for example) to use the vehicle for business purposes.<\/li>\n
      • Class 3 business car insurance – <\/strong>This covers class 2 business car insurance and is designed for high-mileage drivers, such as salespeople. That being said, it excludes activities covered under commercial car insurance.<\/li>\n<\/ul>\n

        How does business car insurance work?<\/strong><\/h2>\n

        We’ve gone over why, and who, needs business car insurance. But what specific incidents does it cover?<\/p>\n

        Liability for accidents during business driving<\/strong><\/h3>\n

        Liability coverage is a foundational aspect of all car insurance. In the event of accidents, business car insurance covers:<\/p>\n

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        • Third-party injury – <\/strong>In the event of a pedestrian or road user being injured as a result of your actions during business driving, business car insurance will cover the medical expenses, rehabilitation or compensation claims on your behalf.<\/li>\n
        • Third-party property damage – <\/strong>Damage caused to a property by your vehicle during work use, such as other vehicles, fences etc.<\/li>\n
        • Legal fees – <\/strong>If a claim is made against you following an accident, business car insurance will cover your legal defence.<\/li>\n<\/ul>\n

          Coverage for transporting work-related goods or passengers<\/strong><\/h3>\n

          Business car insurance covers protection for not only your vehicle, but its contents, provided they are:<\/p>\n

            \n
          • Work-related goods – <\/strong>All work-related goods on board your vehicle are covered for damage and theft, such as the tools, materials and goods that are transported for business purposes.<\/li>\n
          • Passenger for business purposes – <\/strong>All passengers transported for business reasons are covered by your business car insurance policy in terms of medical expenses, rehabilitation or compensation claims.<\/li>\n
          • Protection for the vehicle – <\/strong>If the business car is damaged or stolen whilst carrying goods or passengers related to work, your business car insurance policy will provide repairs or replacements.<\/li>\n<\/ul>\n

            What is the average business car insurance cost?<\/strong><\/h2>\n

            The cost of business car insurance in the UK will scale with coverage type. The averages are as follows:<\/p>\n\n\n\n\n\n\n\n\n\n\n
            Type of Business Car Insurance<\/strong><\/td>\nAverage Annual Cost<\/strong><\/td>\n<\/tr>\n
            Class 1 Business Use<\/strong><\/td>\n\u00a3627<\/td>\n<\/tr>\n
            Class 2 Business Use<\/strong><\/td>\n\u00a3750\u2013\u00a3850<\/td>\n<\/tr>\n
            Class 3 Business Use<\/strong><\/td>\n\u00a31,886<\/td>\n<\/tr>\n
            Commercial Car Insurance<\/strong><\/td>\n\u00a32,000\u2013\u00a33,000<\/td>\n<\/tr>\n
            Temporary Business Car Insurance<\/strong><\/td>\n\u00a315\u2013\u00a330 (per day)<\/td>\n<\/tr>\n
            Adding Business Use to Standard Policy<\/strong><\/td>\n\u00a350\u2013\u00a3100<\/td>\n<\/tr>\n
            Comprehensive Business Cover (Estimated)<\/strong><\/td>\n\u00a31,200\u2013\u00a31,500<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

            How do you save money on business car insurance?<\/strong><\/h3>\n

            If you are unsure that the expense of a business car insurance policy is worth it, consider the following.<\/p>\n