Make Sure You’re Correctly Insured!
That dropbox that asks you what you use your car for is not there so you can try out all the different options until you get one that gives you a price you like. It is crucial that you answer this honestly, otherwise you run the genuine risk of not having a claim paid in the event of an accident. One of the most common questions I was asked was “Do I need car insurance for business use?” To make things a little easier, here’s a quick guide:
Social Domestic and Pleasure
This is usually the cheapest of all the options, so there is the greatest temptation to tick this option. However, if you are using your car for commuting or any form of travel in connection with your business (or your employers business) then choosing this option is an absolute no no! Choose this for everyday car use such as going to the shops, visiting friends or going on holiday.
Social, Domestic and Pleasure + Commuting
This is for everything that Social Domestic and Pleasure does plus the cover needed for you to travel to and from a regular place of work. You need to choose this option even if you drive to a station, park and catch a train to work. It is even necessary to have this if you are just the driver that happens to give someone else a lift to work on a regular basis.
Most companies have different levels of business use depending on what you are doing. These levels, rather unhelpfully, vary from insurer to insurer. Here are some of the more typical levels you will find.
Business Use 1.
This is probably the lowest level and covers you for going between various places of work.
Business Use 2.
The same as Business Use 1, but can also include a named driver using the vehicle in connection with your business.
Business Use 3.
This includes the first two but also covers you for things like making deliveries or sales calls. It is the cover that most company representatives need. Even if you work in an industry such as the care industry and you use you own car, you will need Business Use due to the travelling between service users.
This is for people who pretty much drive for a living. van drivers, taxis, instructors and tradesman will all need to have full commercial use on their vehicle insurance.
This is just a guide. If you are not sure which category you fall into, you must ask. Just tell your provider what you are using the vehicle for and let them put you in the category that they feel suits you best. Don’t forget to tell them if you change the use of your car during the course of the insurance cover, don’t wait until the renewal!