Why you Need Business Car Insurance for Work | Stubben Edge

Business car insurance is essential if you’re required to drive your car often for work purposes and need more cover then what the standard car insurance offers. 

Many UK drivers are unaware of business car insurance or what counts as business use of a vehicle, meaning there are potentially thousands of wrongly insured drivers on the road. Read our guide to find out if you need business car insurance and what exactly that covers.

What is business car insurance?

Business car insurance covers a wide range of uses as those who need to use their car for work-related purposes are seen as a bigger risk to insurance providers. It’s estimated that of 15,000 crashes on UK roads, 20% of those involve someone driving for business and without the right cover the right compensation won’t be received.

From travelling frequently between different locations to visiting customers and businesses, this type of car insurance is typically more expensive than standard car insurance. This is because driving for work covers many more miles than simply commuting, usually during busy periods and on unfamiliar roads, so the likelihood of you making a claim is increased.

Who needs business car insurance?

If you’re driving hundreds of miles a week using your own vehicle for work then you fall in the category of needing business car insurance. Whether that means you’re running errands during the day, allowing colleagues to drive your car, visiting clients and other businesses for meetings,  driving to different locations or any other driving on behalf of the company, you need to ensure you’re suitably covered. 

What are the different levels of business car insurance cover?

There are 3 levels of business car insurance so it’s important to do your research to find out which level you fall under. 

  • Class 1 – This covers you for driving between several locations for work such as changing between sites, meeting clients or going to meetings. This type of cover mainly includes people like care workers who are often visiting patients. While work isn’t the primary use of the car, it still needs a higher level of cover than standard car insurance.
  • Class 2 – Class 2 offers the same cover as class 1 except it not only includes you as the driver but also includes a named driver that works for the same company. 
  • Class 3 – If you’re travelling hundreds of miles a week due to work, class 3 is most likely the right level of cover for you. Class 3 covers making deliveries of sample products and is ideal for travelling salesmen. This is the most expensive type of business car insurance as the risk of accidents are greater. 
  • Commercial – A 4th level is also available which is commercial car insurance. This covers cars that are used for businesses such as driving schools or taxi drivers. 

Can you get temporary business car insurance?

If you only use your car for work purposes occasionally, or are going on a short business trip, and don’t want to spend the extra money for business cover it is possible to get temporary business car insurance. Temporary insurance will cover you for as long as you need, whether it’s for an hour or a month, giving you peace of mind that you’re appropriately covered. 

Learn more about commercial car insurance by reading our ultimate guide to taxi insurance.

If you want to use software to create personalised insurance policies and reward clients, get in touch with us to discover how our loyalty platform can help your business.