Understanding Insurance

Your guide to car insurance for business use

What classes of car insurance are there?

There are three main classes of car insurance. The first class is “social only”: whether that’s visiting friends, going to the cinema – basically your everyday jaunts. The second class, “social and commuting” insures you for the things listed in “social only” but also covers you for your commutes to and from work. If you are using your car as part of your job, though you will need business use” cover, otherwise your policy might not be valid if you did need to make a claim.  

Even if you think you don’t need business use, be sure to check exactly what journeys are covered in your standard policy as if you’re commuting large distances to and from work then some insurers might not cover this. 

How do I know if I need it? 

There are many different reasons you might need business use but basically: if you are using your car for the purposes of the company you work for, you need business use insurance. Some of the common reasons for doing so include visiting customers, driving to different offices for meetings and carrying out site visits. 

If you have a company car though, you might not need insurance as this will often be provided by your employer. However, make sure you check the details with your employer so that you are fully covered for the journeys you need to make. 

What types of cover are there?

There isn’t just one standard policy to cover all uses that apply to business use and the levels of cover offered will vary between different insurers so make sure you check the individual details. 

Type One

The first type of business use applies to an individual driver who needs to commute to various places of work, such as visiting different offices or clients and associates. Often, insurers will also offer the chance to add a spouse who can be covered when driving this car.

Type two

This second option offers similar cover to the above but you are also able to add a named driver to the policy, who can use the vehicle if in connection with the business of the main driver. 

Type Three

The final type, known as commercial car insurance, is required by an individual whose job revolves around the use of their car. Examples of this type of individual involve taxi drivers or couriers. 

How much does it cost? 

As these different types of insurance offer different levels of cover, the cost of each policy will vary depending on the level you require. 

It is important to note that the cost of your insurance will also depend upon each individual insurer, as well as other factors such as your driving history, age and the type of car you drive. 

Make sure you give exact details of what type of cover you require and why to ensure that you are fully covered for the journeys you will be making. If not, you run the risk that your policy might not be valid if you did need to make a claim.   

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