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Last updated: 09 September 2021
Insurance providers see it as more of a risk if you are driving your car during business hours because you will be covering more miles at busier times.
A standard car insurance policy should cover you for all domestic and social use of your vehicle, which includes things like going to the shops or driving to a friend's house. Often it will also cover your commute to and from work. However, if you use your car for business purposes, such as driving to meetings, visiting work sites or driving staff members around, you may need business car insurance.
When looking for insurance make sure you are honest about how you use your vehicle and insurance providers will then make sure that you are given a suitable policy.
However, business car insurance isn't always relevant even if driving is an integral part of your job. This is the case if you:
There is no industry standard for business car insurance, but you’re likely to be choosing from one of the following principal classes:
Business car insurance is expensive, but it may still be cheaper than a standard car insurance policy that covers your business travel needs. If you add on business cover to an existing comprehensive car insurance policy, it will likely end up more expensive than if you'd simply taken out a business car insurance policy.
It's important to remember that your driving habits have more of an affect on your premiums than the fact of using your car for work. However, if you want to reduce the cost of a business vehicle insurance policy further, then there are a number of things to consider:
If you are using your private car at work and paying for business car insurance, you may be entitled to claim for the insurance on a self-assessment tax return, providing you are self-employed.
It is also normal for companies to reimburse their employees for business miles at 45p a mile as the current standard reimbursement rate, although this may drop to 25p if you're covering a lot of miles. (Rate true 20 April 2020).
If you drive a company car, your employer has a legal responsibility to make sure their vehicles conform to road traffic laws and are properly maintained.
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