Cars which are used for business will need a slightly different variety of insurance than the sort you might take out for personal use. This kind of insurance might provide more extensive cover – though it might also demand costlier premiums. Let’s look a little more closely at business car insurance, and determine whether it’s right for your circumstances.
What sort of cover can I expect?
Much like ordinary car insurance, you’ll get three different sorts of cover, depending on your policy.
Third Party will cover you against damage you inflict upon other people. It’s the bare minimum you need to be legally entitled to drive on British roads.
Third Party, Fire and Theft goes a stage further and covers you in the event that your vehicle is stolen or damaged in a fire.
Comprehensive covers just about every eventuality. It’ll cover damage to your own vehicle, as well as to other people’s.
Who needs It?
If you’re driving during work hours, transporting clients and colleagues, or putting in serious mileage in a short space of time, then it’s worth considering business insurance. It may work out cheaper in the long term; if you need to make a claim, it’ll offer greater coverage.
Business insurance comes in three numbered classes.
Class 1 will cover a daily commute to and from work, as well as visits you might need to make to different sites. Most commuters, of course, don’t need business insurance – but if your needs go further, you might look into it.
Class 2 is largely the same, except that you’ll have the option of adding another named driver to the policy.
Class 3 will cover high-mileage drivers, who need to drive from town to town. Door-to-door salespeople might be covered here – but delivery drivers, taxi drivers and chauffeurs won’t be. These people need to look into more specialised forms of insurance.
Insurers may tempt you with a range of add-ons before you finally agree to the policy. Some of these are actually worthwhile. As ever, it’ll depend on your personal circumstances.
Personal Injury Cover will bump up the standard level of injury compensation up to around £100,000. If you feel that you’re particularly vulnerable, then it might be worth considering.
Personal Effects Cover will ensure that the items in your car are covered. There tends to be a hard cap on this, so tradespeople transporting tools, and executives transporting expensive laptops, should read the fine print.
Lost Keys Cover will help cover the cost of getting a new key cut. This can be an expensive process, so if you think it’s possible that you’ll lose your keys, what’s the harm in covering yourself?
Scratch and Dent policies, like the one offered by ALA, will cover you against the damage your car might receive, even when the responsible party isn’t around. If you’re worried about leaving a Bentley in a public car park, it’s worthwhile.