To correctly calculate the sort of insurance cover you need, insurers need to know exactly what you intend to use your vehicle for. And if you’re going to be using your car or van for business reasons, then yes – you do need to add business use to your insurance.
What is Business Use?
Many car insurance policies cover Social, Domestic and Pleasure use. Think of this as your standard, everyday driving – trips to the shops, the school run, and your daily commute.
But for some people, their car is their livelihood. Your job might involve extensive driving on top of your daily commute, whether for sales or for site visits. Or perhaps you drive a van from job to job, filled with the tools of the trade.
If driving is a big part of your job, then you’ll need insurance to cover you above and beyond what’s covered by a conventional Social, Domestic and Pleasure policy.
Why Do I Need Business Use on My Insurance?
You don’t need to add Business Use to your insurance if you just use your car to commute to and from one place of work every day. Your commute will usually be covered by a standard Social, Domestic and Pleasure policy, but you should check your certificate and schedule if you are unsure.
But if you drive for a living, you’ll rack up a lot more miles than most drivers. What’s more, you’ll be doing a lot of your driving during rush hours and other periods of heavy traffic. Your job might involve a lot of driving in unfamiliar areas, and you might be required to park in unsecure locations.
In short, if you drive for business reasons, you’ll routinely put yourself in situations where accidents, or theft, is more likely. To insurers, this makes you a high-risk driver. Business Use insurance covers you for this additional risk.
What Does Business Use Cover?
There are three classes of business insurance, each offering different levels of cover.
Class 1 Business Insurance – This covers you for your commute, as well as regular site visits as part of your work.
Class 2 Business Insurance – This offers the same cover as Class 1 Business Insurance, but with the option of adding a named driver to your policy, who’ll also be covered for business use.
Class 3 Business Insurance – This offers the most comprehensive cover. If you drive hundreds of miles each week, need multiple named drivers on your policy, or if driving is a permanent aspect of your job – such as door to door sales, then you’ll need Class 3 Business Insurance.
If you drive a company car, your employer should take care of your Business Use insurance for you.
Certain types of use such as chauffeuring or taxi driving will normally require a specialist insurance policy.
For more information about what’s covered by your insurance, please check your policy wording, and check your certificate and schedule.
What Happens If I Don’t Add Business Use to My Policy?
If you don’t declare that you use your car or van for business use, and you’re involved in an accident, your policy may be invalidated, and your claim may be rejected.
It’s not worth the risk. It’s essential that you get exactly the right level of cover you need.
How Do I Add Business Use to My Policy?
If you need to add business use to our policy, just get in touch and we’ll sort you out. Give us a call on 0330 024 4747, or email us at email@example.com.
If this change is as a result of you or an additional driver changing occupation, or your annual mileage is going to increase let us know! That way we can make sure you have the cover you need.