Whether you have just opened a new business, or might be looking to use your car to run a few work errands, you may be wondering to yourself, ‘do I need business use car insurance?’ Knowing when business car insurance is needed and when it is not needed can be tricky, especially for those who don’t use their car for business purposes often. In this article, we explore business car insurance, when it’s needed and when it’s not.
Discover some of the most asked questions about business insurance and their answers below.
- do I need business car insurance to commute?
- do I need business cover to travel away from my usual place of work?
- do I need business cover if I’m a courier using my own van?
- do I need business cover for fast food deliveries?
- do I need to pay for business car insurance, or should my employer?
- do I need business car insurance to claim mileage?
Do I need business car insurance to commute?
If you only plan on using your personal vehicle to commute to and from a single workplace, you should be covered by Social, Domestic & Pleasure (SD&P) Insurance. In most cases, a vehicle can be used to commute under a standard annual policy, however, if you commute between a range of workplaces, or your commute is unusual in any way it can always be worth checking in with your insurance agent to be sure. It’s better to know in advance than be caught out when you need cover the most.
Do I need business cover to travel to a work conference or meeting away from my usual place of work?
Yes, if you are travelling for work then you should always assume that you need business cover on top of your personal auto insurance. When you are travelling to a work conference or meeting away from your usual place of work, you are likely to be driving in an area you don’t know and therefore insurance is even more important.
If this is a rare event, and you do not wish to take out a full, annual business policy to cover your trip, our temporary business only car insurance can offer you the perfect solution. Giving you both SD&P and business cover, you can insure yourself for as little as one hour.
Do I need business cover if I’m a courier using my own van?
Yes, if you are driving your van or car as a courier, you should have business insurance.
However, because of the nature of courier work, business cover is not enough to make sure you are fully insured, and you’ll need to be sure that you have courier cover also. Courier cover will ensure that should there be a problem or accident whilst you are working, you will be covered.
As well as courier cover, you’ll need goods-in-transit insurance ensuring the goods you are delivering are protected also. Please be aware, the rules are different if you are delivering your own goods, as opposed to delivering goods on behalf of another company.
Unfortunately, at this time our temporary business policy cannot cover deliveries, so you will need to look into taking out an annual policy.
Do I need business cover for fast food deliveries?
If you have picked up some part-time work doing deliveries for a local restaurant, or maybe an app service like UberEats in your spare time, you’ll need a special kind of commercial auto insurance called fast food delivery insurance, as well as business cover. Fast food delivery insurance makes sure you are covered for the food you are carrying, and any issues there may be with that (for example, the food going cold between the restaurant and drop-off point.)
Unfortunately, at this time our temporary business policy won’t be able to cover you for fast food deliveries, so you will need to look into taking out an annual policy with your insurance company.
Do I need to pay for business car insurance, or should my employer?
For occupations where driving is a large part of the job (for example, builders who may travel between different job sites, or estate agents who may use their car to travel between house viewings) it can be expected that your employer might contribute towards, or pay for your business car insurance.
Oftentimes, your standard mileage rate should be calculated to cover ‘other expenses’, which will include things like car maintenance and your car insurance premium. When you are discussing driving for work purposes with an employer, you should ask for a break down of the mileage rate and ensure that it will cover not only your fuel but other aspects including business car insurance as well.
If you feel it will not provide enough cover, you should talk to your employer to discuss your options.
Do I need business car insurance to claim mileage?
Whether you need business car insurance in order to claim back payment for the miles you have driven from your employer is different from employer to employer. However, if you are claiming vehicle expenses from an employer, then you are using your vehicle for work purposes and should have business insurance on your vehicle. Regardless of your company policy on claiming mileage, you will need business cover to use your car for work purposes.
If you chose to not get business cover when taking out your annual insurance policy, but now need it for a short period of time or on a one-off occasion, our temporary business cover can come in handy. You can set it up in as little as 15 minutes and it can start at as little as one-hour cover. It’s a great, cost-effective solution for those that feel annual cover isn’t necessary, but who still might need to use their vehicle for work on odd occasions.
So, whether you wish to share a long drive with a colleague, or you work vehicle breaks down and you need to use your personal for a few days, we can make sure you are covered.
For more guides, tips, and advice, make sure to head to our news page.