Life is full of risks. It is exciting and interesting but some unexpected events can really set you back. Insurance is a prudent way to transfer the risks from such unexpected events to another company
Insurance helps us protect ourselves and the things we value, such as our homes, our cars and our valuables, from the financial impact of risks, big and small – from fire, flood, storm and earthquake, to theft, car accidents, and travel mishaps – and even from the costs of legal action against us. And we can choose the types of risks we wish to cover by choosing the right kind of policy with the features we need. Insurance works by spreading the cost of unexpected risks among a large number of people in the same region who share similar risks.
As a business owner, you need a lot of insurance coverage. Some cover for your cars, buses, vans, or other vehicles you use in your business as well as coverage for personal assets.
Business car insurance is coverage for you and vehicles you use for work-related purposes. It is more expensive than standard car insurance. This is because driving for work can result in covering more miles at busier times and on unfamiliar roads. The risk involved makes it highly possible to make a claim on the insurance.
Types of business car insurance
Business car insurance falls into three classes – all three also cover social, domestic and leisure use.
Class 1: This covers you for driving between multiple places of work or occasional travel to meet clients. Class 1 insurance typically includes people like care workers who drive to visit patients. It wouldn’t cover you for deliveries or door-to-door sales. It may also cover your husband or wife, but check your policy to be sure.
Class 2: This offers the same cover as class 1, but includes a named driver. Most insurance providers specify that the policy holder and named driver must work for the same business. As with class 1, deliveries and door-to-door selling aren’t covered.
Class 3: This could be the right option if you rack up lots of miles as part of your job – for example, if you’re a salesman. It covers the delivering of samples, but not commercial merchandise. This is the most expensive insurance class, as high-mileage drivers are considered at greater risk of an accident and more likely to make a claim. But be aware that class 3 won’t cover you if you use your car as a taxi or to make deliveries.
What does business car insurance cover me for?
Business car insurance can cover you if you use your car to:
- travel between different sites or offices
- visit clients on a regular basis
- drive other employees around on business duties
- visit customers, for example to deliver samples
- drive to the bank for work reasons
- use your car to get to training, conferences or exhibitions
If you drive your car for work purposes and need to make a claim, you’re likely to find your claim rejected if you don’t have business car insurance. You also might find yourself in trouble for driving uninsured.
If you’re driving your car to and from work but not for work, then you’ll just need to make sure your policy covers commuting.
Why use our car insurance broker service?
As your choice insurance broker service, we help you compare quotes from multiple insurance providers and choose the best coverage suitable to your needs.
Buying a car can be overwhelming. You have to choose the type of coverage you need, and how high to set your coverage limits and deductibles. If you buy or finance your car, you may have to add certain required coverages to your policy.
We help you find the best policy that’s right for you and handle all necessary paper works.
Disclaimer: This information is only available as a general guide on the government policies. It is recommended that you speak with an accountant or financial advisor to get precise information and advice on your situation.