A guide to business car insurance
* Everything you need to know about car insurance * All types of policies explained * How to get the right policy for you...
If you have a company car, the company that owns or leases it to you should provide the insurance.
However, if you use your own car for work, for example to visit clients or to make deliveries, getting the necessary protection is your responsibility.
It is essential to take out a business policy rather than standard cover because most policies cover the car only for social, domestic and pleasure use.
Here, we explain how business car insurance works, whether you need it and how to keep costs to a minimum.
Do I need business car insurance?
If you use your car to commute to and from the same office every day, a standard car insurance policy should be sufficient.
However, many people's jobs are more flexible and varied these days, with some extra driving often a necessity.
If you are one of a growing number of people who drive their own car for business purposes, you need to make sure that you have appropriate motor insurance, otherwise, any future claims could end up being rejected.
What does business car insurance cover?
There are several different types of business insurance and it is important to be clear about the level of cover each provides before applying.
Private and occasional business use policies, for example, are suitable for people who only occasionally have to drive a car for work and do not have a vehicle registered in the name of the business.
Private and business use policies, meanwhile, offer broadly similar cover, but do allow the vehicle to be registered to a business and will also cover any named driver, even if he or she lives at a different address.
If, however, driving is a regular and essential feature of your job, you will probably need the protection that comes with a more expensive commercial travelling policy.
This is the only sort of insurance that offers sufficient cover for a taxi driver or travelling salesman, for example.
How much does business car insurance cost?
Business car insurance is typically more expensive than standard car cover mainly because you are likely to drive more miles and at busier times, pushing up the probability of you making a claim.
Like standard insurance, however, the premium charged will depend on your age and postcode, the make and model of the car and your claims history.
The nature of your business, the amount of time you spend behind the wheel and your work-related mileage will also have an impact on the amount you pay.
How can I cut the cost of business car insurance?
As mentioned above, the make and model of your car can have a big impact on the cost of business car insurance.
If you are buying a new vehicle, it is therefore a good idea to check out the car insurance group at www.thatcham.org before making your choice.
Cars in lower insurance groups generally pay lower premiums, while sportier, more powerful makes that fall into the higher groups can prove very costly to insure.
Other cost-cutting tips include negotiating a cheaper business car insurance quote by agreeing to limit your mileage as long as it is a level to which you are able to stick.
Discounts should also be available if you are prepared to fit your car with insurer-approved security devices, such as an alarm or immobiliser, and to keep it in a locked garage or secure business premises overnight rather than parking it on the road.
This article has been researched and written by whatcar.com's car insurance partner, MoneySupermarket