Business Car Insurance
If you or your employees use a car for business then you need business car insurance. A private car insurance policy will usually cover driving to and from one place of work only, so if you use a private car to travel to meetings elsewhere for example, you won't be insured.
In the event of a claim, especially where someone is hurt, if the car was being used for business purposes on a private policy, there could be severe repercussions not just for the employee, but the company too. Employers have a responsibility to their employees and in certain circumstances, they may also be liable for an employee's actions.
Business car insurance policies usually come in 3 different variations, although policies do vary from insurer to insurer:
Class 1 business use car insurance
This class of business car insurance is mainly for owner drivers who use their own cars for business purposes. It will normally include social, domestic and pleasure purposes, and cover is available for your spouse too.
Class 2 business use car insurance
This class of business car insurance covers a policyholder's car for named drivers using the vehicle for business. It is generally used for company owned vehicles.
Class 3 business use car insurance
This class of business car insurance covers “commercial travelling”, where travelling is part of your job. For example, if you are a sales rep who regularly drives to and from a client’s premises, this is classified as commercial travelling.
How can I cut my business car insurance costs??
There are several things you can do, some of them are obvious, some of them not, such as adding your spouse, as insurance companies generally see women as a lower risk, and will reduce your premium accordingly.
- Specify an annual mileage limit
- Limit the age of drivers using the car
- Increase your excess
- Check for hidden add-ons and remove them
Most people would also suggest shopping around although this has it's pitfalls and should be done with your eyes open. For instance, many comparison sites can quote really low prices, because the excess is really high, and some of the less transparent ones fail to mention this. A similar thing happens with call centres, you're happy with the price, until you receive a proposal form that bears no resemblance to the information you gave them and means your policy is worthless. In cases like these, it's best to ask for a written quotation you can check beforehand.
Often it pays to talk to an expert such as a professional insurance intermediary who will have experience of the industry.
- They will already know who is most likely to give you the best rates for your circumstances
- You save a lot of time while they do the legwork and search their markets
- Some of the larger ones have access to competitive schemes not available direct to the public
- A broker will know how to obtain introductory discounts for you
- A broker can obtain a price match or even beat a competitor's quote for you.
And lastly, they can give you professionally qualified advice on your needs, so if you need a question answering reliably or you require something slightly different to the norm, using a broker can pay dividends in getting the right business car policy for you.
When selecting a broker, it's a good idea to talk to a large independent company, preferably one that isn't tied to an insurance company, and has good customer services standards, such as Coversure