​Could you be driving uninsured without realising it? If you drive to different places as part of your job, you will need to take out business car insurance.  A standard motor insurance policy may only cover social use and commuting, and you could find yourself out of pocket.

Who Needs Business Car Insurance?

If you drive to multiple locations during your working day or attend client meetings in different offices, then you will need to include business use. If you have an accident while using your car for business purposes and you only have social and domestic insurance, you may find that you aren’t covered.

It must be pointed out that business car insurance is not the same as commercial or motor trade insurance, where a person uses their car as part of their job, such as delivery drivers, taxi drivers, driving instructors, car valets or mobile mechanics. Always speak with your insurance company to double check which policy is right for you.

What to Tell Your Insurer

When you contact an insurance agent, they will ask you the nature of your work, how long you spend driving and an estimate of how many miles you will be driving for work annually.

Expect your insurance premium to be a little higher as a result of business insurance as you will tend to spend more time on the road, often in busy and unfamiliar locations, where you could be at more risk of an accident.  Don’t be tempted to underestimate mileage or usage as this could be costly in the long run.

You can help reduce the cost of your premium and save money on your business car insurance by:

• Choosing a smaller, less powerful car in a lower insurance category
• Making sure it has approved security devices such as an immobiliser, alarm, steering lock and dash cam.
• Parking your car in a safe place overnight, such as on a driveway or in a locked garage.
• If you are going to choose a policy covering more than one driver, restricting the age limit to over 25 years.

The Different Types of Business Car Insurance

There are three levels of business car insurance, so it’s important to choose the one that’s right for your business driving. The terms and conditions will vary between insurers, and it’s important to read the small print and compare what they have to offer.

Business Class 1 – covering the main driver who uses their car to drive to places for work, such as site visits. This offers a slightly higher level of cover than domestic insurance for those who are only travelling short distances. Most policies will also include a spouse on the policy but not any other named business drivers.

Business Class 2 – similar to Class 1 but covers both the policy holder and an additional driver for business purposes.

Business Class 3 – generally suitable for someone such as a salesman who is driving longer distances. Class 3 also provides cover for light goods transportation and a number of selling purposes, if they are part of your job.

Motor Trade Insurance – Covers cars which are primarily used for motor trade businesses, such as if you’re a mobile mechanic, car salesman or valetor.

For more information about whether you need business insurance or motor trade Insurance, please contact Tradex on 0333 313 1111.