Definition Business Use Car Insurance

If you re given a company car as an employment benefit it should be covered by your employer s policy.

Definition business use car insurance. When looking for quotes for business use vehicles you will probably have to look at a few things. Business use class a classification by vehicle usage used in classifying commercial vehicles. And commercial which applies for any other. You need to know the type of use you ll need for your car something a lot of people can get confused about.

It s also usually the cheapest class of business car insurance. Vehicles that are the business. Usually your spouse will also be covered for business use class 1 car insurance but no other named driver. Understand the different levels of cover unfortunately there isn t one standard business car insurance policy.

Car insurance classes of use explained. Service which does not include transportation of any property except for tools equipment and supplies to and from jobs. Best to check when you get your quote. It is even more important to have comprehensive car insurance on a vehicle being used for business than a private car as it is most likely used to secure income for the business.

If your employer won t insure the car you need additional coverage under your personal auto policy. Class 1 use covers an annual business mileage of up to 1 000 miles 1 600 kilometres paid or up to 2 000miles 3 200 kilometres unpaid. Class 2 business use expands from class 1 business insurance to include additional named drivers on the policy that are usually part of the same business as the policy holder. The problem is many people aren t sure what counts as business use as linda wells head of underwriting at admiral explained.

There are three business use classifications. Most policies will fall into one of the following three categories. If the car is being used in connection with work beyond simply commuting you ll need a level of business insurance cover. Class 2 business use.

Retail which includes transportation of property to and from individual households. This is much the same as class 1 business insurance but it generally covers you the policyholder and a named driver in connection with your business. Business car insurance class 1. Class 1 use is when the car is being used for social domestic and pleasure purposes and for use by the insured and or spouse in connection with his her business or occupation.

For example will it be for basic social and every day driving or do you need business car insurance. Covers your car if you use it to drive between multiple work locations or to visit clients or customers. There are a range of options and it s down to you to decide which type is most suited to your particular needs. Class 2 business car insurance.

Many people use their own vehicle or a work vehicle during the course of their employment. Personal auto policies don t cover vehicles used to carry people for a fee like a taxi limo or shuttle.