What Business Car Insurance does:
Whether it’s driving to different offices or visiting clients, you will need business car insurance. If you use your car every day as part of your job, it would also be considered as business use.
One advantage of insuring your car for business use is that you can add another colleague as a driver on your policy. This is only if they are in the same car when visiting clients. It will not matter if you live at different addresses.
Why it is important to have:
Business car insurance covers any trip you make in your vehicle which is associated with your job. This is important as standard car insurance only covers social trips. For this reason, it will likely be a greater expense than regular car insurance as it covers a wider range of risks.
Business car insurance will be important to have for workers as it gives the owner of the vehicle peace of mind. Whenever they are using their vehicle for business use, they will be covered against accidents or damages. Furthermore, it covers the owner of the vehicle and a colleague if they are driving the insured car for a business trip.
How is Business Car Insurance different than regular car insurance:
Unlike standard car insurance which covers social trips and commuting, this specific insurance allows you to drive wherever your work takes you. This is different as standard cover doesn’t include any work-related cover. This can be restricting for anyone who consistently drvies their car for work.
Why Business Car Insurance can be more expensive:
It is typically more expensive than standard cover because a motorist who drives a vehicle for business as well as pleasure is deemed riskier. They will usually cover more miles, sometimes in heavy traffic and on unfamiliar roads. The chances of a claim therefore increase.
More risks depending on job:
If you travel more in your vehicle to and from work or if you travel normally in heavier congestion, the costs may be higher. This is because you are considered to bring more risk during travels to work. Additonally, it can depend on where you live. For example, if you live in London, premiums may be higher as it is a busier place to travel to and fro each day.
We hope this helped you understand the difference between business insurance for your car and standard cover. If this has interested you, Alternative Insurance Brokers offer all types of covers. Check out our Commercial Page to find out about more of our products.
Hope to speak soon,
Director of Alternative Insurance Brokers