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Buyer's guide: Business Car Insurance

Where a standard car policy will cover you for the generic social, domestic and personal use, a business owner needs a policy that specifically covers their business activities rather than tasks such as visiting friends, the shops or a day out.

If you are using your personal car for business purposes be warned, your insurance company may refuse to pay out if you have an accident.

The price of business car insurance premiums

As a general rule business insurance policies are more expensive than individual policy. This is primarily because they have slightly higher claim rates. This is for many reasons but primarily because many of them are delivery vans racing around city centres or sales man doing lots of mileage. In general people are taking less care when it is not their personal vehicle.

The different classes of business car insurance

There are various classes of business car insurance cover, however these can differ from insurer to insurer so you need to check the details of the policies on offer carefully. For example, you are most likely to need what's known as class 1 business use if you are required to drive your car to multiple sites or offices (in addition to commuting to work).

The level up from this (and the policy that provides additional coverage) covers not only the policyholder but also a named driver; both of which would be covered for driving between business sites and offices.

Lastly, for those that travel many business miles, they will need a class 3 insurance policy.

You should ensure that all of your details are 100% correct when using these sites as insurance companies can and will refuse any claims that are based on even slightly incorrect information.

The bulk buyer is the king!

Although the internet is great for an individual if getting car insurance, for a company it can often be better to call an insurance company directly or use a specialist company car insurance broker. In both cases, if you are lucky enough to have a large company with a number of company cars or vans then you have the power to negotiate. We have known insurance premiums be cut as much as 30% through hard negotiation.

Additionally you may find that your business requires a bespoke insurance solution, perhaps for your logistics fleet, or for the numerous workmen vans. In this instance you should most definitely ring directly as you could get a bulk buy discount.

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