What Is Business Car Insurance?
If you have a job which entails a lot of travel, either to customer sites or between offices, you may need something a little more than a standard car insurance policy.
Standard car insurance policies will usually cover you for journeys which are made for social, domestic and personal use.
These include commuting to a regular place of work, parking at a train station for commuting or for social purposes such as visiting family members.
How Does It Work?
Business car insurance works very differently, for your driving patterns will be very different when you’re out on a job. Perhaps you drive between sites or have to travel to other offices for meetings; such journeys may add hundreds of miles per year to your odometer depending on the frequency of these trips.
Because of the increased risk during these journeys – including driving in heavy traffic or on unfamiliar roads – business insurance premiums will be higher, but this type of insurance will help to cover you during business hours.
What Will A Business Car Insurance Policy Cover?
Business driving policies cover you for all aspects of social, domestic and pleasure (SDP) use, as well as additional cover for any business-related driving you may do, including to and from your regular places of work.
If your work involves a lot of travel to different locations – such as a salesman – then a business use by your policy might be what you’re after. There may also be options to add your spouse to your policy if they also travel for business purposes.
If you’re selling goods or services whilst you travel, then commercial travelling business insurance will be necessary.
Commercial car insurance is different from business car insurance as it involves you using the vehicle for services such as deliveries or taxiing.
If you’re unsure as to which bracket you fit into, check with your insurance broker to make sure before you commit to a business car insurance policy.
Provide as many details as possible about your type of work, the miles you do each year and what goods you carry, as these can all affect your premium price.
Will My Cargo Affect My Cover?
Depending on what you are carrying as part of your business, your insurance premium can be affected.
Whilst it might not harm you to carry deliveries such as foodstuffs, if you are carrying hazardous materials such as medical equipment or oxygen tanks you may need to have some additional details mentioned on your policy, and this may affect your business car insurance premium price.
Can Making Changes To My Car Affect The Price?
When it comes to the vehicle itself, aspects such as make, model, engine size and whether you’ve any additional security devices fitted can potentially affect your business car insurance premium, these can include alarm systems and steering wheel locks.
If you’ve had to make any modifications to your vehicle in order to help you do your job, maybe you’ve installed lifting equipment or upgraded suspension for heavier loads, you may find yourself having to pay a little more towards to your insurance premium.
By taking steps to protect your vehicle, as well as keep your driving record clean, you can potentially reduce your premiums in future, good news for yourself and your business.
Will Company Cars Count Under These Policies?
It is worth remembering that company cars are not the same as cars used for business purposes. Company cars are usually insured by the companies themselves, or by those who have leased the vehicle, and will likely have different insurance arrangements in place.
Whether you use your car to deliver your products, have a mobile business that allows you to keep your equipment in the car or travel long distances between customer sites, business car insurance is essential for ensuring that you are covered always.
If you’re looking for a better deal on your business car insurance, fill out a few details and let us here at Finance.co.uk search our network of brokers to find a deal that’s right for you.