Business car insurance: What is it and who needs it?

Business car insurance is for people who drive a car for business, and these cars usually cover many miles

10:36 12 July 2013

There are different types of car insurance that are offered by different insurers to address your specific needs. If you have a business car or a vehicle that you use for work, the best type of policy to take out is business car insurance.

As business cars usually cover more miles compared to regular cars, as they are used to travel from one site to the next for example, this type of policy is generally more expensive.

This is not to be mistaken for company car insurance. The company generally insures cars issued to its employees.

There are different types of business car insurance that you can choose from based on your needs. There’s class 1 business use that is perfect for people who drive their car to multiple sites or offices. Most insurers would include the spouse on the policy but will not cover the car for business use of the other named driver.

There’s also class 2 type of policy and this typically covers the owner of the car and one named driver. This is applicable to car owners who travel extensively.

Keep in mind that different insurers offer different policies that have different coverage. Be sure to check what you’re paying for before you take out this type of insurance.