Understanding Business Car Insurance

When employees are given cars for business purposes, there is a lot of liability that lands on the company. This is why it is important for companies who perform this practice to get proper business fleet insurance. Insurance will protect both employees and the company from mishaps.

A standard car insurance policy covers cars for social, domestic, and personal use. This can include everyday driving, such as having a day out, going shopping, or visiting friends. Policies can automatically cover the car if there is a commute to and from regular work. If the car is driven to the same office every day or parked in the same car park, then it would be uninsured.

Maybe an employee needs to drive the car to several different offices and work sites or a colleague takes the car to visit clients. Hundreds of miles a week could be put on the car for business purposes. In any of these cases, business car insurance is needed. It can be more expensive than standard motor insurance, so it is important to get the right coverage for specific needs.

The reason business car insurance is more expensive than standard cover is due to the motorist that is driving vehicles for business and pleasure. This is considered more risky in the eyes of insurance companies. The motorist will cover more miles often in heavy traffic and on unfamiliar roads. Chances of a claim will increase.

Because it is more expensive, people and businesses are tempted to lie about their driving habits in order to bring down the cost of insurance. Applying for car insurance means the insurer will ask about the age and postcode of the driver along with the make and model of the car.

Motorists will also need to give details about the business they work for and the driving habits of the vehicle for work purposes. Being dishonest about the demands of driving for work is committing an offence. This could invalidate the insurance policy and the insurer will not pay out in the event of a claim. This means dues paid for insurance are wasted.

There are different classes of business car insurance that can cover. Details will differ between insurers, so businesses and employees need to check the terms and conditions presented by each company carefully. If commuting to work in the car, it needs to be covered under social domestic and pleasure, or additional cover will need to be arranged.

Motorists will probably need class 1 business use if driving the car to multiple sites or offices in addition to the usual place of work. Insurers also include a spouse on this policy but do not insure the car for business use for other named drivers.

The next level of business car insurance covers the policyholder and a named driver who uses the car to travel to different sites for business purposes. An extensive traveller for work needs class 3 business use.

Business car insurance is not the same as commercial car insurance. Commercial insurance is aimed at motorists using cars for commercial purposes, like a taxi driver or delivery person. Remember the definitions of different classes and their differences between insurers. When the car is a company car, meaning provided by the company for the employer, the company will insure the vehicle as well as own it and lease it.

While motorists and businesses alike do not want to pay too much money for business car insurance, the cheapest policy is not always the best policy. Most of the time, extra is needed for more extensive coverage. This will help cover both the motorists and the business.