Business Vehicles & Company Car Insurance

What does company car insurance cover?

Company car insurance is needed for individuals who use their car for more than just a commute to one place of work. You’ll need business car insurance if:

• You commute to off-site meetings as part of your job
• You travel to other operational locations other than your regular place of work
• You run errands on behalf of your business or employer
• You regularly commute to client-sites

Company car insurance can cover you to perform the following activities in your car (dependent on policy):

• Work as a driving instructor
• Work as a taxi driver

There is a much higher risk with company car use, particularly as your job requires you to drive in order to earn money. The more time you spend on the road, the more likely you are to get into an accident and are seen as higher risk from an insurer’s perspective.

How much is company car insurance? 

There are a number of things we take into account when sourcing your competitive company car insurance quote. In order to provide the best possible insurance quote for your company cars and commercial vehicles we will require the following information: 

• Number of vehicles 
• Make of vehicles and years of manufacture 
• Number of employees to be insured and their ages 
• Claim and conviction history 
• The type of cover to be covered 
• Location of your business 

What company car insurance do I need? 

When customers seek insurance for company cars, they are often unaware of what cover they require. By talking to us, you can be assured that our team of company vehicle insurance specialists will be able to help you find the most appropriate company car insurance policy, and the best deal. What’s more is that our entire range of company car insurance policies come with optional European driving cover – just let us know if you want this added to your company vehicle insurance policy. 

If my company car is leased, is it already insured?

No, lease companies do not include company car insurance as part of the monthly cost. Keith Michaels can offer appropriate company car insurance for leased vehicles, designed to meet the needs of an individual or business. Learn more about our leased car insurance. 

Should your employer pay for business car insurance?

Fleet managers might arrange company car insurance for each of their fleet vehicles, but it’s best to assume they haven’t. Whilst many larger corporations naturally cover this, it’s still your responsibility to check you’re insured before you start driving.

In terms of costs, insurance premiums are normally taken care of by your employer as they own the vehicle. However, if you’re adding business use to your domestic car, you’ll be responsible for paying the premiums on time and in full. If you don’t, you’ll void your car insurance.

What are the business car insurance classes?

There are three classes of business car insurance – eClass 1, eClass 2 and eClass 3.

Business eClass 1 

Covers social, domestic and pleasure use as well as driving to and from your place of work. Additionally, it covers the policy holder for short business journeys.

Business eClass 2 

Covers everything that eClass 1 insurance includes, with the addition of other named drivers on the policy that are often part of the same business.

Business eClass 3 

Incorporates everything from eClass 2, but additionally covers unlimited long distance travel with no set destinations. Unlike eClass 1 and eClass 2, eClass 3 covers cars that are used for commercial purposes such as door-to-door sales (not mini-cabs, private hire or driving lessons).

Option of a company car or car allowance? What to choose

The choice is a difficult one that many business people have to face and many aren’t aware just how much you’ll need to consider. To arm you with the knowledge you need to make an informed decision, we’ve reviewed the pros and cons of each. We’ve also created a helpful tool that allows you to determine whether a company car or car allowance will work best for you.

What are the benefits of a company car vs a personal car?

With a company car, employees can be relieved of the financial burden of MOTs, services and repairs. They don’t have to organise selling their car at any stage, and all the responsibility and control remains with the employer. This means you, as a business, have the opportunity to find the best deal on company car insurance, saving money in this competitive market. Read more about the benefits of a company car vs car allowance. 

What is liability car insurance and do you need it?

Liability car insurance, also known as public liability, helps protect you from any liability costs. Specifically, you are covered if your vehicle causes incidental damage to a person or their property. If you use your vehicle for a lot of work-related travel, it might be the right choice for you to add on.

It’s designed to cover any legal costs incurred if a member of the public makes a claim against you or your vehicle.

Public liability car insurance can be added on to a policy (dependent on provider). In most cases, it will come at an extra cost. You might choose to add it to your car insurance policy if:

• You are travelling to multiple premises everyday as part of your job
• You are a driving instructor and want additional protection
• Your car is regularly exhibited at car shows, meets or exhibits

How much does it cost to add business use to your car insurance?

The total cost will depend on a few factors, such as:

• The amount you already pay
• The type of car you have
• Your level of risk
• Your age
• Your driving time and mileage

As you’re likely to carry more risk, especially as you’re driving more often, your monthly premiums could be higher. Likewise, if your total mileage is likely to increase, this is another factor that will impact the cost.

Can you tailor insurance for small businesses as well as large enterprises?

Our dedicated team of expert commercial vehicle and business car insurance brokers are always happy to help with any queries about our range of business motor insurance policies. We are also capable of tailoring insurance for small businesses as well as large enterprises, meaning you always have relevant options available for you. Let us walk you through the process.