Business Car Insurance
If you're planning to use a car for business use, such as attending meetings or running errands for your boss, then chances are you won't be covered by an ordinary car insurance policy. Instead you'll need business car insurance with unique cover options designed for motorists who travel as part of their work.
How does business car insurance work?
Most car insurance policies will cover your car for 'social, domestic and pleasure' (SDP) use and commuting. This covers the normal day-to-day use of a vehicle for travelling to and from work, trips to the shops, visiting friends and family, etc. While this type of policy does insure you for travelling to your regular place of work, it does not offer cover for any further business travel.
If you want car insurance for business use, you have to apply for specific cover. This will normally take one of three forms:
- Private and occasional business use: This covers private use, commuting and also includes use for occasional business purposes by the regular driver or spouse. However, the vehicle must not be registered for business use and must not be an essential part of earning your income.
- Private and business use: This insures all of the features listed above but with the addition of business use for the regular driver, spouse or any named driver on the insurance policy.
- Commercial travelling: This covers a policyholder for whom travelling in their own vehicle is a regular part of their job, such as a door-to-door salesman.
How to cut a business car insurance premium
When looking for cheap business car insurance think about how you will use the car. There is no point in underinsuring yourself – but consider whether you need the vehicle for commercial use, regular business use or occasional business use. Some insurers will let you add car insurance for business use as and when you need it for an additional premium.
Consider agreeing to a feasible mileage limit – if you can prove to an insurer that you only travel limited distances you could slash your premiums.
Think about where you park the car – if you always park in a secured area, perhaps on business grounds, inform your insurer.
In addition follow the standard methods to reduce a car insurance premium such as enhancing the security of your vehicle, agreeing to a higher voluntary excess and driving a car with a smaller engine.
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