Business car insurance – what you need to know

When it comes to driving, we all know insurance is important. However, for those who drive for work you need to make sure you have the right coverage.

Below, we’ve outlined everything you need to know about business car insurance.

What is business car insurance?

A necessity for those who drive to multiple offices or off-site locations for work, business car insurance will ensure that the car you’re driving for work is covered. This is different from commercial car insurance, which is what’s required should you drive a taxi or delivery van.

If the car is a company vehicle, check with the company you work for, as the car may not require insurance as it may be insured by the company leasing the cars to your employer.

Why you need it?

The average company car driver covers just over 18,000 miles every year. This is more than double the mileage of domestic car users. It’s been found that company car drivers spend around three years of their careers behind the wheel.

Because of this, it’s estimated that around 20% of road accidents in the UK over the space of three years can be attributed to company car drivers. If you’re involved in one of these accidents, having the right cover will ensure you receive the right compensation.

The different classes of business car insurance

When it comes to buying your business car insurance, it’s important to know that one size doesn’t fit all. There are three different classes of car insurance, which are:

Class 1

This covers you for social, domestic and pleasure alongside driving to and from your place of work.

Class 2

This expands on the above to include additional drivers who are usually part of the same business as a policy holder.

Class 3

Alongside the same additions as Class 2, Class 3 business car insurance will cover the policy holder for unlimited long-distance travel.

Optional extras

On top of your business car insurance, several additional extras can be included should you need them. These are:

Gap insurance

This is designed to help drivers cover the ‘gap’ between the amount that they owe on their car and the car’s cash value in the event of an accident and can be bought from places like Direct Gap.

Breakdown cover

This will ensure that professional help will be provided should your car break down while you’re driving.

Driving abroad cover

If you have to leave the country regularly, or even occasionally, this is an excellent addition to have. This will ensure that your car has the same level of cover while driving out of the country as it does while driving in the UK.

Personal accident cover

This is designed to cover you or other named drivers if you suffer serious injuries while in the car. You can even boost this level of cover with additional protection. Make sure you check this cover as some will only cover death, sight loss and permanent loss of a limb.

If you do happen to drive a vehicle regularly for work, make sure you get the right cover and any additional extras to ensure you’re safe at all times.

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