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Business Car Insurance Versus Personal


Did you know every type of use of a vehicle must be covered with a specific use insurance policy? For example, if you use your car for commercial use, the insurance policy must be for that activity and again if you’re using your vehicle to visit clients, i.e. business use you need a plan for that is for use too.

Essentially you need to be transparent and declare exactly how you intend to use the vehicle, so if you do need to make a claim, your provider can not decline it due to the general use of the car.

All business-related driving, including commuting back and forth between locations, driving your employees or going to meet customers and any use on behalf of an organization can be a company-wide policy for all business use vehicles.

Self-employed and micro-business owners are renown for avoiding business car insurance because the premiums are higher than personal, even though they may know the risks are higher due to the car being in use more often. Just like with other insurances, e.g. health, and home, paying a little more in premiums is a better move than paying for a policy, you can never make a successful claim.

Prepare yourself

All providers ask a lot of questions when you apply for a car insurance policy, and more so if the policy is for business vehicles. First of all, you will be asked about your business, how you work, how much time you or someone else will be driving the car and how many kilometers or miles your car will average per year for business travel.

It may be difficult to deliver an accurate estimate, so work out how many hours per day, the vehicle will be used and whether it will be constant in use.

Which level of cover to choose?

There are multiple types of business car insurance policies and providers. An insurance broker may be able to help choose the right one. Here are some of the policy categories:

Business use by a single person

This option covers the main driver for a vehicle. In most cases, the driver can add a spouse to the coverage if they will drive him or her to work, even when this stray away from a person’s regular routes. A good fit for this business car insurance is a salesperson.

Business use by all drivers

This option is very similar to the one that we just explained above. However, this kind of policy can include multiple drivers – in fact, as many as you want or need. If you have multiple shifts and more drivers that will be using the same vehicle, this is a suitable option.

Policies for commercial commuting

These policies are used for people that constantly drive for their work. Simply put, their job description requires them to spend most of their time in a vehicle, driving. This will also affect the price of the policy and make it more expensive. This policy is used for job positions such as a taxi driver. You need to learn as much as possible and go through every single detail to make sure that you are covered for the expensive things that might happen. For example, the catalytic converter repair cost is substantial and can set you back quite a bit.

How to get a good deal

To get a good deal, compare multiple quotes, and this is where an insurance broker can assist and do the legwork on your behalf. It is also a good idea to consult with other business owners that use vehicles for their work to get referrals and an idea of what they pay. Every insurer will offer a deal, especially if you move your other insurances to them.

As it’s a business cost do your homework or outsource it so savings are realised ideally on all your business insurance policies.

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