Business VS Private Vehicle Car Insurance - 14 Aug 2009 07:48
While insurance policies on vehicles used for private use cost less than vehicles used for business, not being honest with your insurance company can lead to them rejecting your claim. Always disclose for what purpose you use your vehicle to your insurance company.
Private use constitutes using your vehicle for private use only such as driving to the shops, family or on holiday. This does however include driving to and from work. If you use your vehicle for business, that is from the office you drive to other areas as part of the function of your work, then you must insure your car for business use.
For obvious reasons, large organisations with company vehicles insure their cars for business use, but what of small businesses and businesses operated out of home? Many believe that insuring their vehicle for private use and doing the odd trip from home to do business falls under their cover. This however is not the case.
If you travel regularly to do business - more than 10 times in a month - then you fall under business cover. Your premiums will be higher - if your insurer agrees to cover you for business - but it’s worth it. You wouldn’t want to give your insurer a reason to not repudiate your claim.
While insurance policies on vehicles used for private use cost less than vehicles used for business, not being honest with your insurance company can lead to them rejecting your claim. Always disclose for what purpose you use your vehicle to your insurance company.
Private use constitutes using your vehicle for private use only such as driving to the shops, family or on holiday. This does however include driving to and from work. If you use your vehicle for business, that is from the office you drive to other areas as part of the function of your work, then you must insure your car for business use.
For obvious reasons, large organisations with company vehicles insure their cars for business use, but what of small businesses and businesses operated out of home? Many believe that insuring their vehicle for private use and doing the odd trip from home to do business falls under their cover. This however is not the case.
If you travel regularly to do business - more than 10 times in a month - then you fall under business cover. Your premiums will be higher - if your insurer agrees to cover you for business - but it’s worth it. You wouldn’t want to give your insurer a reason to not repudiate your claim.