If you're fortunate enough to have your vehicle provided by the company you work for, it's likely that you won't need to take out any insurance yourself, as it will already be provided by your employer. For most people 'personal use' would be an adequate description when stating the use of your vehicle. But with unemployment figures still high, more and more people are opting to become self employed, and the change of usage in your vehicle can have a serious impact on the validity of your policy.
Standard policies only cover use for domestic and social reasons, although most also cover travel to and from a place of work. Any other work related travel additional to this would be considered ‘business’ use and you will need a business car policy to match. Business cars fall into a number of different classes, so you should give careful consideration when looking at policies. Unfortunately you can expect to pay more than on a standard policy due to the greater mileage and risk, but at least you’ll be covered.
Classes of Business Car Insurance
Different classes of business insurance exist, but vary between providers, so always check the small print. Generally business car insurance falls into the following classifications:
- Business Use – Class 1: covers you in connection with your job, such as visiting different sites away from your workplace. This type of class will not cover commercial use, such as delivery of goods, nor does it cover if the vehicles is used for 'sales' – both of these uses fall under separate classes. Alongside covering for business use, you can also expect to be covered for standard domestic and social use.
- Business Use – Class 2: Provides the same cover as that mentioned above, but will also allow you to add a named driver to use the same vehicle, although some providers stipulate that they must both have the same occupation, so check the details on any policy your considering.
- Business Use – Class 3: will cover you for usage during deliveries and other light commercial activities such as door-to-door sales
- Commercial Car Insurance: For occupations which carry an additional risk, such as taxi driving, or anything where you'll be carrying public passengers, you'll need to look for a specialist commercial car insurance policy. Policies vary depending on whether your taxi is for private hire or public hire, and providers can often be regional; including or excluding certain regions of the country from cover.
Class 1, is generally adequate cover for most people, but it's important to assess your own situation and make the correct choice. As with all vehicle insurance you be offered it in either 'third party', 'third party, fire & theft', or 'fully comprehensive', with the prices reflecting the difference between the three. Remember the cheapest option is not always s the best and you should pay particular attention to the contractual details as to what's covered.
Never be tempted to lie in an effort to bring down your premium – aside from invalidating the policy and standing to recoup nothing when processing a claim, you're also committing fraud and putting yourself at risk of prosecution.