Under UK law, every driver on public roads must be insured. The form this insurance takes, however, can vary. In some cases, motorists might opt to take a special form of insurance that’s geared specifically toward business use.
Company car drivers are involved in around a fifth of collisions on British roads, despite making up a much smaller minority of motorists. This overrepresentation can be explained by the fact that drivers of company cars tend to rack up far more miles. Specialized business insurance can help to deal with this elevated level of risk.
When you insure your car, the insurer or price-comparison service will typically ask you what you’re going to be using the car for. If you choose business insurance, then you’ll be covered against travel for business use. If you don’t, and you end up making a claim because of business travel, then you might be at risk of not actually receiving a pay-out. As ever, it’s better to pay a little more up-front than taking the risk of paying a lot later.
Who needs Business Car Insurance?
If you’re doing a lot of traveling for work purposes, then you could probably make a good case for this form of insurance. Falling into this category are care workers and nurses who find themselves making a lot of home visits, tradespeople who need to move from place to place frequently, and executives who find themselves traveling up and down motorways for much of their working lives.
What are the Costs?
The cost of your business car insurance is calculated according to a host of variables, much like personal car insurance would be. The experience of the driver and the reliability of the car are both critical. A car that is at lower statistical risk of an accident, and with fewer miles on the clock, will tend to be cheaper to insure.
Other factors, like whether you’re parking on a road, in a garage, or on a driveway overnight, will also make a difference.
To get the best possible deal, it’s worth shopping around. Adding business use to your insurance will add to your premium – often significantly. This makes getting several quotes all the more important. Be aware that some insurers aren’t listed on price comparison sites – so do your research thoroughly. Make sure that you’ve read the small print, and that you’re covered against any special-use cases which might apply to your particular line of work.
You can reduce the likelihood of your having to make a claim by making sure that you’re caring for your car while you own it. You can book a car service online nowadays, making it easier than ever to keep the vehicle in good condition.