Do You Need Business Car Insurance?

If you’re travelling for work outside the context of your regular commute, you’ll need to ensure you’ve got specific business car insurance cover. Our temporary business car insurance covers you where your regular policy might not. 

If you use your car for work, like travelling for a one-off meeting, visiting a new client, or attending an industry event – you should consider investing in business car insurance, to make sure you’re covered. If you do use your car a lot at work, business car insurance is probably the best option for you. We’ll explain everything you need to know about “commercial travelling”and auto insurance for business use – what it is, when you need it, and why many motorists get caught out being under-insured, below.

What is Business Car Insurance?

Business car insurance is an insurance policy designed to cover any driving you undertake for work purposes, except for your normal commute. Being covered in this way means that should an accident happen on your way to a business meeting or site location, your insurance policy will cover that accident. 

Many British motorists aren’t aware that their regular insurance policy is unlikely to cover them if such an event were to occur driving for business, and that’s why it’s so important to always check with your insurance provider what their comprehensive cover actually offers. (Remember that you need insurance for any driving you undertake – whether it’s business-related or not.) 

At GoShorty, our temporary car insurance will cover any work-related driving you undertake. Because our business car insurance falls under the category of our temporary cover, the whole purchase is made much easier – and quicker – for drivers unsure of what they need. When applying for a car insurance quote from us, you must explain exactly how you’ll be using your car so we can provide you with the best business car insurance plan to suit you and your lifestyle. 

Failure to do so could leave you driving on the road uninsured, so it’s best to look into our car insurance options now, if you haven’t already. We have looked more closely at the importance of providing accurate information to your insurer here. 

When Do You Need Business Car Insurance?

You’ll need business car insurance if you’re planning any business-related activity which requires driving. For instance, if you’re driving to a meeting, attending a conference, visiting sites or going on a work trip. For many motorists, temporary business cover is the ideal solution here – as they only rarely drive for work purposes. You’ll only have to pay to cover the time you need insurance for, rather than larger monthly or annual costs, to make sure your business-related driving is comprehensively covered.

What is Social and Commuting Cover?

If the only business-related use you have for your car is driving to and from work, all you’ll need is social and commuting cover. This level of cover is also necessary if you use your car for only part of your commute. For example, if you drive to and park at a train station, you’ll need social and commuting cover. If you drop someone else off at work regularly, but don’t use your car to commute yourself, social and commuting cover will also be applicable. 

The social aspect of this cover refers to everyday car use – from driving to the supermarket, to picking up the kids from school. Social and commuting cover is not to be confused with social, domestic, and pleasure cover (SD&P). Whilst this level of insurance will cover you for all everyday car uses, it won’t for any work-related driving.

What is Business Class 1 Insurance?

For general work-related driving, you’ll need Business Class 1 insurance. Generally, this pertains to any driving done between one or more locations. For example, if you work primarily in an office but are required to make on-site visits in various locations, you’ll need Business Class 1 insurance cover.

As with all levels of business class insurance, Business Class 1 automatically covers you for social, domestic, and pleasure car uses. Additionally, it also covers your commute to and from work.

Some examples of who would need Class 1 business insurance include:

• An estate agent who drives between different home viewings.
• A social worker who needs to drive to make home visits.
• A self-employed plumber who drives to different jobs.
• A guitar teacher who drives to students’ homes for lessons.
• A nanny who takes children on day trips.

What is Business Class 2 Insurance?

Business Class 2 insurance covers everything from Business Class 1, but you can also enlist a named driver with Business Class 2. This tier of car insurance is necessary if you drive a lot during business hours and have a co-worker or employee who also drives the same car on a regular basis. This legally allows your co-worker or employee to use your car for business purposes when you’re not driving it. (Don’t get this confused with Drive Other Cars cover.)

As with all named driver policies, Business Class 2 insurance only grants driving permission to the driver named in the policy. It does not mean you can allow any employee or co-worker to use your car. In this case, you would have allowed someone else to drive your car without insurance, thus they’d be driving uninsured – which is a criminal offence. 

Instances where Class 2 business car insurance cover would be applicable include:

• A carpenter who allows their assistant to take over the wheel when travelling to clients who live far away.
• A commercial landlord who allows a chosen employee to drive to an owned property for repairs or other work.
• A florist who allows an employee to deliver flowers.

What is Business Class 3 Insurance?

If your job requires you to be on the road more than off it, you’ll probably qualify for Business Class 3 insurance. While Business Class 1 is recommended for driving to and from one or two clients per day, Business Class 3 is more suitable if you are constantly visiting new clients throughout the day. Class 3 is sometimes referred to as ‘commercial travelling car insurance,’ and unlike Business Class 2, Class 3 car insurance does not allow you to select a named driver.

Examples of who would require Business Class 3 insurance include:

• A door-to-door salesperson. Anyone whose business requires them to go door-to-door selling products on a daily basis would need Business Class 3.
• A building inspector who drives between different sites multiple times a day.

What is Commercial Travelling?

Commercial vehicle insurance is necessary when your vehicle plays a fundamental role in your business. This goes beyond commuting (which you don’t require any business car insurance for) or driving to and from different locations as part of your work (which you do). Commercial vehicle insurance provides cover for when your car is your business. 

You’ll need commercial insurance for the following professions:

• Ice cream van owner
• Food truck owner
• Service utility truck owner
• Driving instructor

You might be wondering if commercial vehicle insurance is necessary for company cars. If you drive a company car, you shouldn’t have to take out commercial car insurance – or any other form of business car insurance, for that matter. If a company car is provided as part of your job, your employer should already have business car insurance arranged for the vehicle.

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