Business Car Insurance Explained: What you Need to Know

With so many different types of car insurance policies on the market, it can be tricky to know which one is best for your particular needs, especially if it’s your first time taking out a specific kind of policy. This is often the case for those shopping for business car insurance, so we’ve put together a quick and simple guide to help you understand the ins and outs of business car insurance policies.

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If you use your vehicle excessively as part of your job, it’s quite likely that you’ll need a business car insurance policy to cover any potential issues the vehicle may encounter.

Regular car insurance policies usually cover the car for general domestic use as well as a commute to and from a single place of work. However, if you use your vehicle excessively as part of your job, it’s quite likely that you’ll need a business car insurance policy to cover any potential issues the vehicle may encounter.

This is because vehicles used for business purposes quickly build up their mileage, and have a higher risk of damage or collisions, and could be driven by more than one driver. In instances such as these, you’ll almost certainly need car insurance for business use.

How Much is Business Car Insurance?

Business car insurance policies are usually more expensive than standard insurance policies, mostly due to the increased risk involved with these vehicles. Covering more miles often at peak times in areas unfamiliar to the driver, business vehicles are statistically more likely to be involved in a collision, or sustain some kind of damage or breakdown due to wear and tear. This is why business car insurance premiums are higher than most standard policies.

In some cases, policy holders may be tempted to ‘bend the truth’ in order to reduce the cost of their insurance premiums, but this really isn’t worth the small savings you’ll make. If a collision or incident should occur and the details on the policy are found to be false, the insurance becomes void and you’ll be left with a large bill and no coverage.

When registering car insurance for business use, you’ll encounter the usual questions you’d come across when setting up a standard policy, such as detailing your age, postcode and car details. However, you will then face a new set of questions specific to business car insurance, such as details about your business or vocation, as well as when, where and why you drive the car for work purposes.

Types of Business Car Insurance

There are several classes of business car insurance, which affords some flexibility to customers who need a policy that fits their specific usage.


Sole driver: This covers everything that’s normally included in a regular car insurance policy, as well as covering the driver for excessive business use away from their normal place of work.


Named driver: This provides the same cover as the business policy covered above, and also extends the coverage to an additional named driver, such as a spouse or co-worker.


Commercial travel: These policies are typical of a driver who drives as a permanent aspect of their job, such as taxi drivers or couriers, and extends the coverage for more excessive use. It’s important to note that a car used for business and a company car are different; a company car should be insured by the company that owns or rents the vehicle you are using, and should not come at an additional cost to you.


One day business car insurance: If driving your car for business is not a regular situation, you can opt for temporary insurance for business use, ranging from one hour to 30 days.

New Business, New Car?

If you are looking to buy a new car for business use, sell your current car the easy and hassle-free way to

If business car insurance is new to you, it’s entirely possible that you may be purchasing a new vehicle for business use. A newer car may be more suitable for enduring the additional mileage and driving in built-up, busy areas, as well as being protected by car warranty, and therefore, a simple and hassle-free way of selling your previous vehicle could be exactly what you are looking for.

With, you can find the value of your car in under 60 seconds, and if you’re happy with the quote you receive, you could even sell your car the same day at one of our 250+ UK branches! To begin, simply enter your reg number in the box below for a free online car valuation

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