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How business car insurance works


If you use a car for business reasons, you would need more than a regular car insurance policy. You need a business car insurance that would provide you with unique features and options to cover those who travel for business reasons.

Social, domestic, and pleasure (SDP) use are the normal day to day use that is covered by most insurance companies. This does not usually provide you with many options when you are travelling to your workplace or for the business or company you work for. It would not even cover your car if ever you have future business travels.

You would have to apply for a specific cover when you want a business car insurance. You can choose one of these forms:

Private and occasional business use – This covers private use and commuting. It also covers business travels by the owner or their spouse. The car, however, should not be registered as a business car nor should it be the main tool for earning your income.

Private and business use – Just like the first one, this also covers private and commuting use. The car should not be registered as an official business car that is the main earning tool of a company. The difference is that this covers the business-related travels made by the owner, their spouses, or anyone who has been listed as a driver at the time of business car insurance application.

Commercial travelling – this covers motorists who use their car as part of their regular job and business travels. Pizza deliveries, for example, use a company car to be able to deliver their product to their consumers.

Business car insurance pays only for those losses specified by your contract. It is extremely important that you should be aware of the policies and the coverage of the insurance you applied for. You can seek the guidance of the insurance representative in the insurance company you opted for. They can walk you through the items of what you are covered for and what you are not when it comes to your business car insurance. You have to keep in mind that insurances are made to help car owners to cope with finances during events that can not be predicted such as accidents. But if the event does not count as anything that is sudden or accidental, then there would be no coverage from the business car insurance plan that you have applied for.