Do you need business insurance for your car?

It’s no secret that getting behind the wheel of a car comes with a degree of risk. It’s why insurance is something we all have to have.

Whether it’s the school run or the commute to work, car insurance helps to cover you against any accidents. But what if you’re using your car more often? Like as a major tool for work?

Then you might need to think about extra cover.

When should you start thinking about business insurance for your car?

Your general insurance covers you against things like fire, theft, crashes etc. But if you’re using your car for more than just the commute then you need to think about extending your cover.

So, if you’re using your car to make deliveries, frequently heading to meetings or visiting customers you need to start shopping around for the right level of business insurance.

What does business insurance cover?

Business insurance covers the trips you make for work, beyond what is seen as “standard use”. The reasoning is that because you’re driving considerably more than most people, you’re on the road for longer and that means you are at a greater risk.

That extra risk comes with a need for a higher level of coverage and protection.

A one-off trip might not need you to add to your insurance, but if your role is mainly spent driving places it’s something you need to make sure you, and other drivers, are protected.

Business cover is split into different classes, your cover needs to fit your specific needs.


Class 1 – Business use by you

This is the level of cover you’re likely to need if you’re doing some light travelling for work, keep in mind this only applies to the named driver.

Class 2 – Business use by all drivers

This is the sort of cover you need to cover multiple drivers. This usually means ones that work for the same business.

Class 3 – Commercial travelling

This is the level for the people who refer to their car as their office, like salespeople who cover hundreds of miles and visit different locations every day. If you spend most of your work time on the road this is the level you should be considering.

Does business insurance for your car cost more?

It can do.

If you need business insurance, it’s a good idea to shop around to find yourself the best possible deal.

First you should check with your employer to see if they actually have business insurance in place and they can add your vehicle to their policy.

If you need to sort out your own you should reach out to your current insurer as a starting point, they’ll be able to quote you on how much more it will be to add business insurance to your current package.

Remember, you don’t have to take that first option. Shop around, head to price comparison sites and look for the deal that’s right for you, whether that’s the right level of coverage, price or somewhere in the middle.

Do you definitely need business insurance for your car?

Yes. You always need to make sure you have the right level of insurance. Not doing, then needing to make a claim could leave you massively out of pocket.

Just remember to check with your insurer what they recommend and then don’t be afraid to shop around to get the best quote and save money if you need to update your policy.