All You Need to Know about Business Car Insurance in the UK

All You Need to Know about Business Car Insurance in the UK

If you’re planning to purchase business car insurance, then here is everything you need to know.

Business car insurance is a kind of insurance that covers a car that is used for work-related purposes other than personal use. It is more expensive than standard car insurance because using a car for work-related purposes will require you to cover more miles. As such, there is a high likelihood for you to make a claim.

Are you looking for information about how to insure your car in the UK? We have gathered all the important things you need to know about this type of insurance in the UK.

When Do You Need Business Car Insurance?

You may need business car insurance in the following instances:

  • When driving to business meetings
  • Driving to clients’ premises
  • Driving to work-related conferences
  • Carrying out errands related to your job
  • Making collections or deliveries

What Does Business Car Insurance Cover?

Just like standard car insurance, this insurance has three main types of coverage:

Third-Party Insurance (TPO). It is the minimum legal requirement by UK law. It covers costs associated with third parties, from injuries and damages as a result of your driving. It does not cover damages to your car.

Third Party, Fire and Theft Insurance (TPFT). It covers a third party in the event of injury or damage to property. In addition, it also covers your car in case it is stolen or damaged by fire.

Fully comprehensive. It offers full coverage in case your car was stolen or damaged in an accident or fire. It also covers the costs of a personal injury in the event of an accident and damage to the contents of your vehicle.

Related: How to Swerve The Risks And Dangers Of Driving Over Potholes

Classes of This Insurance in the UK

There are different classes of business car insurance in the UK. Each class serves a different purpose, and as such, it is important that you select the right one for you.

Class 1 Insurance Cover

Class 1 of this type of car insurance will cover you when you are driving to multiple places of work like meeting clients and job sites. Typically, it can include people like health care workers like nurses who can get car insurance for nurses.

Class 2 Insurance Cover

It offers the same cover as Class 1 business car insurance but also includes a named driver, usually a co-worker. Insurance providers require that the policyholder and the named driver must work for the same business. It does not cover deliveries and door-to-door selling.

Class 3 Insurance Cover

It covers people who frequently travel between different business locations and drive for longer miles. It is the most expensive and covers unlimited long-distance travel.

How Much Does Business Car Insurance Cost?

The cost of this insurance varies from one car insurance provider. Besides, the cost also varied depending on:

  • The type of car you are driving. This includes the make and model of the car.
  • The mileage you cover while driving for work, social, domestic, and leisure activities.
  • Your age, no claims discount, and driving history
  • The age and driving history of any named driver
  • Where you live and where you work

Requirements of Getting Business Car Insurance Quote

To get a business car insurance quote, you need the following:

  • The use of the car
  • No claims discount
  • Any additional drivers
  • Your car. You need a car registration number, or you can use your car’s make, model, and age
  • Your driving history. You need to provide details of accidents you have claimed for or if you have been convicted of any traffic offenses.

Summary of Business Car Insurance in the UK

If you have a car you use to run business errands, then you need to think of getting this insurance. Make sure to get the right class of car insurance that covers your needs. When taking this insurance, you need to remember that it does not cover taxi business cars or while working as a driving instructor.