Business Car Insurance

The price of insurance for businesses varies based on several things, including the type of coverage you need. Class 3 is the priciest insurance class, as drivers who cover a lot of miles are seen as having a higher chance of getting into an accident and are more likely to make a claim. 

How much you’ll pay for your business use policy also depends on: 

• The car you drive – insurers check your car’s make and model and its car insurance group. 

• Your estimated mileage for work and for social, domestic or leisure activities. 

• Your no-claims discount and your driving record. 

• Your age – if you’re a young driver, you might find that your premiums are higher due to perceived risk factors, while older drivers may benefit from lower premiums due to experience. 

Typically, this type of insurance is covered by the company you work for.  

If you drive a company car then your employer will take care of arranging and paying for your insurance. This is because they own the vehicle you’ll be using. It’s still a good idea to go over the terms with your employer though. 

If your job requires you to use your own car for work purposes, your employer may reimburse the extra costs of adding business use to your policy, as well as mileage allowances. 

If you work for yourself as a sole trader, then you’ll need to set up and pay for your own insurance. You can use your business car insurance as a business expense and subtract the cost from your total tax bill. You’ll also need to track the miles you drive for work.  

To reduce the cost of your policy, consider trying the following:  

• Compare quotes from different insurers 

• Increase your voluntary excess 

• Install security features on your vehicle 

• Maintain a clean driving record 

• Bundle policies if you insure multiple vehicles